Name: Biogen Inc. (NASDAQ:BIIB) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

Biogen Inc., current enterprise value calculation

Current share price (P)	$273.56
No. shares of common stock outstanding	144,001,404
US$ in thousands
Common equity (market value)¹	39,393,024)
Add: Preferred stock, par value $0.001 per share (per books)	—)
Add: Noncontrolling interests (per books)	63,500)
Total equity	39,456,524)
Add: Current portion of notes payable (per books)	999,100)
Add: Notes payable, excluding current portion (per books)	6,274,000)
Total equity and debt	46,729,624)
Less: Cash and cash equivalents	2,261,400)
Less: Marketable securities	1,541,100)
Enterprise value (EV)	42,927,124)

Based on: 10-K (reporting date: 2021-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 273.56 × 144,001,404

Biogen Inc., EV calculation

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Share price^1, 2	$220.17	$263.25	$337.24	$333.24	$346.00
No. shares of common stock outstanding¹	146,962,793	152,335,731	174,064,011	196,708,784	211,562,686
US$ in thousands
Common equity (market value)³	32,356,798)	40,102,381)	58,701,347)	65,551,235)	73,200,689)
Add: Preferred stock, par value $0.001 per share (book value)	—)	—)	—)	—)	—)
Add: Noncontrolling interests (book value)	63,500)	(14,200)	(4,100)	(8,000)	(14,700)
Total equity	32,420,298)	40,088,181)	58,697,247)	65,543,235)	73,185,989)
Add: Current portion of notes payable (book value)	999,100)	—)	1,495,800)	—)	3,200)
Add: Notes payable, excluding current portion (book value)	6,274,000)	7,426,200)	4,459,000)	5,936,500)	5,935,000)
Total equity and debt	39,693,398)	47,514,381)	64,652,047)	71,479,735)	79,124,189)
Less: Cash and cash equivalents	2,261,400)	1,331,200)	2,913,700)	1,224,600)	1,573,800)
Less: Marketable securities	1,541,100)	1,278,900)	1,562,200)	2,313,400)	2,115,200)
Enterprise value (EV)	35,890,898)	44,904,281)	60,176,147)	67,941,735)	75,435,189)

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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Biogen Inc. Annual Report.

³ 2021 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 220.17 × 146,962,793

A consistent downward trajectory in valuation metrics is evident from 2017 through 2021. The most significant contraction occurred between 2019 and 2021, marking a period of accelerated decline in both market-based and accounting-based equity measures.

Market Value of Common Equity: The market value of common equity experienced a continuous decline, decreasing from US$ 73,200,689 thousand in 2017 to US$ 32,356,798 thousand by the end of 2021. This represents a total reduction of approximately 55.7% over the five-year period, with the steepest drop occurring between 2019 and 2020.
Equity and Debt Correlation: Total equity and the sum of total equity and debt followed a near-identical downward trend. The marginal variance between the market value of common equity and total equity suggests that the company's equity was valued by the market very close to its book value throughout the analyzed period.
Enterprise Value (EV) Compression: Enterprise value exhibited a steady contraction, falling from US$ 75,435,189 thousand in 2017 to US$ 35,890,898 thousand in 2021. The high degree of correlation between the decline in EV and the decline in market capitalization indicates that the overall valuation compression was driven primarily by the reduction in equity value rather than significant volatility in the net debt position.

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Biogen Inc. (NASDAQ:BIIB)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)