Enterprise Value to EBITDA (EV/EBITDA)
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Biogen Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Biogen Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The annual financial data reveals a fluctuating trend in the profitability measures of the company over the five-year period ending December 31, 2021. A general pattern of growth is followed by a notable decline in the most recent years.
- Net Income
- The net income attributable to the company increased significantly from 2,539,100 US dollars in 2017 to a peak of 5,888,500 US dollars in 2019. However, this was followed by a sharp decline in 2020 to 4,000,600 US dollars, with a further decline to 1,556,100 US dollars in 2021, indicating a substantial reduction in profitability.
- Earnings Before Tax (EBT)
- EBT exhibited a steady upward trend from 5,128,800 US dollars in 2017 to 7,046,500 US dollars in 2019. Similar to net income, there was a marked decrease in 2020 to 5,052,800 US dollars and a further dramatic drop to 1,780,100 US dollars in 2021, reflecting decreased earnings before taxation.
- Earnings Before Interest and Tax (EBIT)
- The EBIT followed a comparable pattern, increasing from 5,379,600 US dollars in 2017 to 7,233,900 US dollars in 2019. Subsequently, the EBIT fell to 5,275,300 US dollars in 2020 and declined sharply to 2,033,700 US dollars in 2021, indicating reduced operational profitability.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA rose from 6,460,600 US dollars in 2017 to a high of 7,698,600 US dollars in 2019. This was followed by a significant decrease to 5,732,500 US dollars in 2020 and a more pronounced drop to 2,521,400 US dollars in 2021, suggesting diminished cash flow from core operations.
In summary, the data demonstrate a period of growth in earnings and profitability measures through 2019, followed by a progressive decline over the subsequent two years. The declines observed in 2020 and 2021 may indicate operational challenges or market conditions impacting the company's financial performance significantly during this period.
Enterprise Value to EBITDA Ratio, Current
Biogen Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AbbVie Inc. | |
| Amgen Inc. | |
| Bristol-Myers Squibb Co. | |
| Danaher Corp. | |
| Eli Lilly & Co. | |
| Gilead Sciences Inc. | |
| Johnson & Johnson | |
| Merck & Co. Inc. | |
| Pfizer Inc. | |
| Regeneron Pharmaceuticals Inc. | |
| Thermo Fisher Scientific Inc. | |
| Vertex Pharmaceuticals Inc. | |
| EV/EBITDA, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | |
| EV/EBITDA, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2021-12-31).
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
Biogen Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| EV/EBITDA, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows a consistent downward trend over the five-year period. It decreased from approximately 75.4 billion US dollars at the end of 2017 to around 35.9 billion US dollars by the end of 2021, reflecting a reduction of more than 50%. This steady decline suggests a significant change in the company's market valuation or capital structure during these years.
- Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
- EBITDA exhibited a rising trend from 2017 to 2019, increasing from roughly 6.46 billion US dollars to 7.70 billion US dollars, indicating improved operational profitability. However, this trend reversed starting in 2020, with EBITDA dropping sharply to 5.73 billion US dollars and then to 2.52 billion US dollars in 2021. The substantial decline in the last two years points to deteriorating earnings performance.
- EV/EBITDA Ratio
- The EV/EBITDA ratio decreased from 11.68 in 2017 to a low of 7.82-7.83 in 2019 and 2020, suggesting that the company's valuation relative to its earnings became more attractive during that period. However, in 2021, the ratio surged to 14.23, the highest in the presented timeframe. This sharp increase is primarily driven by the steep decline in EBITDA in 2021, combined with the ongoing decrease in enterprise value, implying potential market concerns or increased risk perception regarding the company's future earnings capacity.