Enterprise Value (EV)
Current Enterprise Value (EV)
Abiomed Inc., current enterprise value calculation
| Current share price (P) | $373.63 |
| No. shares of common stock outstanding | 45,091,184 |
| US$ in thousands | |
| Common equity (market value)1 | 16,847,419) |
| Add: Class B Preferred Stock, $.01 par value; none issued and outstanding (per books) | —) |
| Total equity | 16,847,419) |
| Add: Current portion of capital lease obligation (per books) | —) |
| Add: Capital lease obligation, net of current portion (per books) | —) |
| Total equity and debt | 16,847,419) |
| Less: Cash and cash equivalents | 132,818) |
| Less: Short-term marketable securities | 625,789) |
| Enterprise value (EV) | 16,088,812) |
Based on: 10-K (reporting date: 2022-03-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 373.63 × 45,091,184
Historical Enterprise Value (EV)
Abiomed Inc., EV calculation
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Abiomed Inc. Annual Report.
3 2022 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 235.75 × 45,563,937
The enterprise value exhibited significant volatility between March 31, 2017, and March 31, 2022. A sharp increase was recorded from 2017 to 2018, where the value grew from US$ 5.74 billion to a peak of US$ 17.18 billion. This was followed by a consecutive decline over the next two years, reaching a low of US$ 8.38 billion in 2020, before rebounding in 2021 and slightly receding to US$ 9.98 billion by March 31, 2022.
- Equity and Debt Composition
- Total equity remains identical to the market value of common equity across the entire analyzed period, suggesting a simple capital structure without preferred shares. Debt levels appear negligible, as total equity and debt figures align almost exactly with total equity from 2018 through 2022, indicating a minimal reliance on borrowed capital.
- Enterprise Value Relationship
- The enterprise value consistently remains below the market value of common equity. This persistent gap indicates a substantial net cash position, where the cash and cash equivalents held by the entity exceed its total debt obligations, thereby reducing the overall enterprise value relative to its market capitalization.
- Valuation Trends
- A period of extreme valuation growth is observed between 2017 and 2018, with the enterprise value increasing by approximately 199%. This peak was followed by a correction phase through 2020, resulting in a decline of roughly 51% from the 2018 high, before the value entered a phase of moderate fluctuation between 2021 and 2022.
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