Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Cytokinetics Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 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).
- Net Loss
- The net loss has shown a consistent upward trend in magnitude over the five-year period. Beginning at approximately -106 million USD in 2018, the net loss increased gradually to nearly -127 million USD by 2020. In the subsequent years, the loss escalated more significantly, reaching over -215 million USD in 2021 and culminating at nearly -389 million USD in 2022. This indicates a substantial worsening in profitability over time.
- Earnings Before Tax (EBT)
- The earnings before tax mirror the net loss figures exactly for each year, suggesting the absence of tax expenses or income. Like the net loss, EBT deteriorated progressively, from about -106 million USD in 2018 to almost -389 million USD in 2022, confirming an escalating loss pattern before taxation effects.
- Earnings Before Interest and Tax (EBIT)
- EBIT values followed a similar negative trajectory. Starting at roughly -102 million USD in 2018, EBIT lost magnitude slightly by 2019 and 2020, hovering near -111 million USD. However, a sharp decline occurred in 2021 and 2022, with EBIT dropping to approximately -199 million USD and then significantly further to around -370 million USD. This suggests an increasing operational loss over the time horizon analyzed.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- The EBITDA figures also show a persistent negative trend. Initial losses near -101 million USD in 2018 worsened marginally through 2019 and 2020, with a relatively stable range near -109 million USD. The losses expanded considerably in the last two years, reaching nearly -197 million USD in 2021 and then deepening to approximately -364 million USD in 2022. This pattern reflects increasing difficulties at the core earnings level, even before accounting for depreciation and amortization expenses.
- Overall Insights
- Across all key earnings metrics, there is a clear and consistent pattern of increasing losses year over year from 2018 through 2022. The sharp escalation beginning in 2021 indicates a potential amplification of cost pressures, reduced revenues, or other adverse financial impacts. The parallel trends across net loss, EBT, EBIT, and EBITDA suggest that losses are pervasive throughout operational and broader financial activities. The data highlight a need for strategic financial reassessment to address the growing negative profitability trend.
Enterprise Value to EBITDA Ratio, Current
Cytokinetics Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 13,914,826) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | (363,727) |
| Valuation Ratio | |
| EV/EBITDA | — |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AbbVie Inc. | 30.49 |
| Amgen Inc. | 15.11 |
| Bristol-Myers Squibb Co. | 41.19 |
| Danaher Corp. | 20.94 |
| Eli Lilly & Co. | 48.73 |
| Gilead Sciences Inc. | 35.68 |
| Johnson & Johnson | 17.61 |
| Merck & Co. Inc. | 8.83 |
| Pfizer Inc. | 9.97 |
| Regeneron Pharmaceuticals Inc. | 10.61 |
| Thermo Fisher Scientific Inc. | 17.99 |
| Vertex Pharmaceuticals Inc. | 189.66 |
| EV/EBITDA, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 15.04 |
| EV/EBITDA, Industry | |
| Health Care | 14.85 |
Based on: 10-K (reporting date: 2022-12-31).
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
Cytokinetics Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 3,931,450) | 2,644,163) | 1,003,554) | 787,578) | 173,561) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | (363,727) | (196,598) | (109,496) | (113,776) | (101,253) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | — | — | — | — | — | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AbbVie Inc. | 13.31 | 13.44 | 21.34 | — | — | |
| Amgen Inc. | 12.97 | 13.22 | 12.24 | — | — | |
| Bristol-Myers Squibb Co. | 9.46 | 8.65 | 34.35 | — | — | |
| Danaher Corp. | 18.42 | 21.05 | 26.68 | — | — | |
| Eli Lilly & Co. | 37.74 | 29.85 | 23.67 | — | — | |
| Gilead Sciences Inc. | 13.89 | 8.57 | 24.90 | — | — | |
| Johnson & Johnson | 14.78 | 14.47 | 18.20 | — | — | |
| Merck & Co. Inc. | 13.91 | 12.18 | 16.05 | — | — | |
| Pfizer Inc. | 6.12 | 8.64 | 15.78 | — | — | |
| Regeneron Pharmaceuticals Inc. | 15.27 | 6.68 | 12.70 | — | — | |
| Thermo Fisher Scientific Inc. | 20.25 | 20.21 | 18.72 | — | — | |
| Vertex Pharmaceuticals Inc. | 14.91 | 18.92 | 14.81 | — | — | |
| EV/EBITDA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 13.58 | 13.16 | 18.90 | — | — | |
| EV/EBITDA, Industry | ||||||
| Health Care | 14.00 | 14.33 | 18.21 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 3,931,450 ÷ -363,727 = —
4 Click competitor name to see calculations.
The analysis of the financial data reveals several key trends over the five-year period from 2018 to 2022.
- Enterprise Value (EV)
- The enterprise value shows a significant upward trend, increasing consistently each year. Starting from approximately $173.6 million in 2018, it rose sharply to around $787.6 million in 2019. This growth continued through the following years, reaching about $1 billion in 2020, approximately $2.64 billion in 2021, and culminating at roughly $3.93 billion by the end of 2022. This suggests a growing market valuation or increased investor confidence over the period.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA figures indicate persistent negative earnings throughout the five years, reflecting ongoing operating losses. The losses showed some variability, with a decline from approximately -$101.3 million in 2018 to -$113.8 million in 2019, followed by a slight improvement in 2020 to about -$109.5 million. However, losses intensified substantially in subsequent years, nearly doubling to roughly -$196.6 million in 2021, and further increasing to about -$363.7 million in 2022. This trend indicates escalating operational challenges or increased expenditures that outpaced revenues.
- EV/EBITDA Ratio
- The absence of calculated EV/EBITDA ratios in the data reflects potential difficulties in this metric’s interpretation due to the consistent negative EBITDA values. The negative EBITDA values likely render the ratio less meaningful or not applicable, limiting its usefulness in assessing valuation multiples during this period.
Overall, while the enterprise value demonstrates significant appreciation, the company has faced sustained and deepening operating losses. The disconnect between growing valuation and negative earnings suggests reliance on factors other than current profitability, such as growth potential, technological assets, or market positioning. This pattern warrants careful consideration regarding the sustainability of financial performance and investor expectations.