Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Amgen Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Income
- The net income demonstrated a fluctuating trend over the five-year period. Starting at 7,264 million US dollars in 2020, it decreased significantly to 5,893 million in 2021. A recovery phase followed, with net income increasing to 6,552 million in 2022 and 6,717 million in 2023. However, there was a notable decline in 2024, where net income dropped sharply to 4,090 million US dollars, representing the lowest point within the timeframe after 2021.
- Earnings Before Tax (EBT)
- Earnings before tax mirrored the general pattern observed in net income, starting at 8,133 million US dollars in 2020. This figure declined to 6,701 million in 2021 but experienced a gradual increase in 2022 and 2023, reaching 7,346 million and 7,855 million respectively. Similar to net income, EBT declined markedly in 2024 to 4,609 million US dollars, indicating reduced profitability before taxation in the most recent year.
- Earnings Before Interest and Tax (EBIT)
- EBIT showed moderate volatility but an overall downward trend in the later years. Beginning at 9,395 million US dollars in 2020, it decreased in 2021 to 7,898 million, then partially recovered to 8,752 million in 2022. A strong upswing occurred in 2023, with EBIT peaking at 10,730 million, the highest in the period analyzed. However, EBIT fell substantially in 2024 to 7,764 million, signaling a weakening operating profitability.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA followed a somewhat similar pattern to EBIT but with less volatility and higher absolute values, reflecting operating cash flow robustness. The figure started at 12,996 million US dollars in 2020 and decreased to 11,296 million in 2021. It then improved steadily to 12,169 million in 2022 and gained momentum substantially in 2023, reaching a peak of 14,801 million. Despite the high in 2023, EBITDA decreased in 2024 to 13,356 million, though this remained above the 2020 and 2021 levels.
- Summary of Trends
- Across all profitability measures—net income, EBT, EBIT, and EBITDA—a consistent dip occurred in 2021, followed by recovery and growth in 2022 and 2023. The year 2023 generally marked peak performance, particularly for EBIT and EBITDA. However, 2024 saw significant declines in net income, EBT, and EBIT, indicating challenges in profitability during that year. EBITDA also declined in 2024 but maintained a relatively strong position compared to the earlier years. These patterns might suggest variations in operating efficiency, tax impacts, or extraordinary items affecting net profitability in 2024. The robustness of EBITDA through fluctuations indicates relatively stable core earnings before accounting for non-cash charges.
Enterprise Value to EBITDA Ratio, Current
Amgen Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 196,924) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 13,356) |
| Valuation Ratio | |
| EV/EBITDA | 14.74 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AbbVie Inc. | 30.00 |
| Bristol-Myers Squibb Co. | 41.94 |
| Danaher Corp. | 20.62 |
| Eli Lilly & Co. | 48.94 |
| Gilead Sciences Inc. | 35.81 |
| Johnson & Johnson | 17.79 |
| Merck & Co. Inc. | 8.96 |
| Pfizer Inc. | 9.92 |
| Regeneron Pharmaceuticals Inc. | 9.97 |
| Thermo Fisher Scientific Inc. | 17.99 |
| Vertex Pharmaceuticals Inc. | 195.67 |
| EV/EBITDA, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 21.05 |
| EV/EBITDA, Industry | |
| Health Care | 19.57 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Amgen Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 204,539) | 209,123) | 157,794) | 149,300) | 159,020) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 13,356) | 14,801) | 12,169) | 11,296) | 12,996) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 15.31 | 14.13 | 12.97 | 13.22 | 12.24 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AbbVie Inc. | 26.97 | 20.79 | 13.31 | 13.44 | 21.34 | |
| Bristol-Myers Squibb Co. | 48.23 | 6.51 | 9.46 | 8.65 | 34.35 | |
| Danaher Corp. | 22.34 | 26.41 | 18.42 | 21.05 | 26.68 | |
| Eli Lilly & Co. | 55.98 | 85.33 | 37.74 | 29.85 | 23.67 | |
| Gilead Sciences Inc. | 35.86 | 10.41 | 13.89 | 8.57 | 24.90 | |
| Johnson & Johnson | 15.77 | 16.45 | 14.78 | 14.47 | 18.20 | |
| Merck & Co. Inc. | 9.90 | 51.30 | 13.91 | 12.18 | 16.05 | |
| Pfizer Inc. | 10.60 | 22.50 | 6.12 | 8.64 | 15.78 | |
| Regeneron Pharmaceuticals Inc. | 13.55 | 20.16 | 15.27 | 6.68 | 12.70 | |
| Thermo Fisher Scientific Inc. | 19.89 | 21.83 | 20.25 | 20.21 | 18.72 | |
| Vertex Pharmaceuticals Inc. | 231.93 | 21.57 | 14.91 | 18.92 | 14.81 | |
| EV/EBITDA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 22.07 | 22.59 | 13.58 | 13.16 | 18.90 | |
| EV/EBITDA, Industry | ||||||
| Health Care | 21.04 | 20.28 | 14.00 | 14.33 | 18.21 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 204,539 ÷ 13,356 = 15.31
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value experienced a decrease from 159,020 million USD in 2020 to 149,300 million USD in 2021. This was followed by a recovery to 157,794 million USD in 2022 and a notable increase to 209,123 million USD in 2023. However, in 2024, the value declined slightly to 204,539 million USD. Overall, despite fluctuations, there is an upward trend between 2021 and 2024, reflecting increased valuation after an initial dip.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA decreased from 12,996 million USD in 2020 to 11,296 million USD in 2021, indicating a reduction in operational profitability. It then improved to 12,169 million USD in 2022 and reached a peak of 14,801 million USD in 2023. Nevertheless, EBITDA declined again in 2024 to 13,356 million USD. This pattern shows variability in earnings, with a significant recovery peaking in 2023 followed by a moderate decline.
- EV/EBITDA Ratio
- The EV/EBITDA ratio increased steadily each year, from 12.24 in 2020 to 15.31 in 2024. This rising ratio suggests that the enterprise value has been growing at a faster rate than EBITDA, indicating that the market valuation of the company is becoming more expensive relative to its earnings. The increasing ratio may warrant attention as it reflects changes in market expectations or valuation multiples.