Sanofi (SNY) | EBITDA

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

Sanofi, EBITDA calculation

USD $ in millions, translated from EUR €

12 months ended	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Net income attributable to equity holders of Sanofi	6,549	7,386	7,255	7,546	5,361
Net income attributable to non-controlling interests	223	313	337	611	614
Cost of debt	550	551	511	444	438
Income tax expense (benefit)	1,495	590	1,648	1,955	949
Earnings before interest and tax (EBIT)	8,817	8,840	9,751	10,556	7,362
Depreciation, amortization and impairment of property, plant and equipment and intangible assets	6,470	7,204	6,806	7,182	8,331
Earnings before interest, tax, depreciation and amortization (EBITDA)	15,287	16,044	16,557	17,738	15,693

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.	Sanofi's EBITDA declined from 2010 to 2011 and from 2011 to 2012.

Sanofi, current EV/EBITDA

	Sanofi	Health Care
Selected Financial Data (USD $ in millions)
Enterprise value (EV)	157,083
Earnings before interest, tax, depreciation and amortization (EBITDA)	15,287
Ratio
EV/EBITDA	10.28	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.

Sanofi, EV/EBITDA calculation

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions, translated from EUR €)
Enterprise value (EV)¹	142,574	113,994	94,982	106,606	71,144
Earnings before interest, tax, depreciation and amortization (EBITDA)²	15,287	16,044	16,557	17,738	15,693
EV/EBITDA, Comparison to Industry
Sanofi³	9.33	7.10	5.74	6.01	4.53
Industry, Health Care	9.28	7.90	8.16	7.35	7.02

2012 Calculations

³ EV/EBITDA = EV ÷ EBITDA
= 142,574 ÷ 15,287 = 9.33

Ratio	Description	The company
EV/EBITDA	EV/EBITDA is a valuation indicator for the overall company rather than common stock.	Sanofi's EV/EBITDA ratio increased from 2010 to 2011 and from 2011 to 2012.