AstraZeneca PLC (AZN)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

AstraZeneca PLC, EBITDA calculation

USD $ in millions

12 months ended	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Profit attributable to owners of the Parent	6,297	9,983	8,053	7,521	6,101
Profit attributable to non-controlling interests	30	33	28	23	29
Interest on debt and commercial paper	404	404	450	542	664
Income tax expense (benefit)	1,391	2,351	2,896	3,263	2,551
Earnings before interest and tax (EBIT)	8,122	12,771	11,427	11,349	9,345
Depreciation, amortization and impairment	2,518	2,550	2,741	2,087	2,620
Earnings before interest, tax, depreciation and amortization (EBITDA)	10,640	15,321	14,168	13,436	11,965

Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	AstraZeneca PLC's EBITDA increased from 2010 to 2011 but then declined significantly from 2011 to 2012.

AstraZeneca PLC, current EV/EBITDA

	AstraZeneca PLC	Health Care
Selected Financial Data (USD $ in millions)
Enterprise value (EV)	66,285
Earnings before interest, tax, depreciation and amortization (EBITDA)	10,640
Ratio
EV/EBITDA	6.23	10.10

If company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.

Otherwise, if company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

AstraZeneca PLC, EV/EBITDA calculation

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Enterprise value (EV)¹	63,866	55,465	67,179	64,506	57,425
Earnings before interest, tax, depreciation and amortization (EBITDA)²	10,640	15,321	14,168	13,436	11,965
EV/EBITDA, Comparison to Industry
AstraZeneca PLC³	6.00	3.62	4.74	4.80	4.80
Industry, Health Care	9.28	7.90	8.16	7.35	7.02

2012 Calculations

³ EV/EBITDA = EV ÷ EBITDA
= 63,866 ÷ 10,640 = 6.00

Ratio	Description	The company
EV/EBITDA	EV/EBITDA is a valuation indicator for the overall company rather than common stock.	AstraZeneca PLC's EV/EBITDA ratio declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding 2010 level.