Enterprise Value to EBITDA (EV/EBITDA)
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Gilead Sciences Inc. pages available for free this week:
- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Dividend Discount Model (DDM)
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Gilead Sciences Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
The financial performance, as indicated by earnings metrics, demonstrates considerable fluctuation over the five-year period. A notable pattern emerges when examining the progression of net income attributable to Gilead, earnings before tax, earnings before interest and tax, and earnings before interest, tax, depreciation and amortization.
- Overall Trend
- EBITDA experienced a decline from 2021 to 2024, followed by a substantial increase in 2025. The value decreased from US$11,329 million in 2021 to US$4,434 million in 2024, representing a significant contraction. However, it rebounded strongly to US$13,580 million in 2025, exceeding the 2021 level.
- EBITDA and Other Earnings Metrics
- A consistent relationship exists between EBITDA and other earnings measures. As EBITDA decreased from 2021 to 2024, so did net income attributable to Gilead, earnings before tax, and earnings before interest and tax. This suggests that the declines were not isolated to specific expense categories but reflected a broader reduction in operational profitability. The subsequent recovery in 2025 is mirrored across all reported earnings metrics.
- Year-over-Year Changes
- The largest year-over-year decrease in EBITDA occurred between 2022 and 2023, with a reduction of US$2,356 million. The most substantial increase was observed between 2024 and 2025, with an increase of US$9,146 million. These fluctuations indicate periods of significant operational shifts or external factors impacting profitability.
- EBITDA Margin (Implied)
- While revenue figures are not included, the changes in EBITDA suggest corresponding shifts in profitability margins. The decline in EBITDA from 2021 to 2024 likely resulted in a reduced EBITDA margin, while the increase in 2025 indicates a margin expansion. Further analysis, incorporating revenue figures, would be necessary to quantify these margin changes precisely.
In summary, the period under review was characterized by volatility in earnings performance. The substantial recovery in 2025 suggests a potential turnaround or the impact of specific strategic initiatives, but a comprehensive understanding requires further investigation into the underlying drivers of these changes.
Enterprise Value to EBITDA Ratio, Current
Gilead Sciences Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| 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. | |
| 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: 2025-12-31).
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
Gilead Sciences Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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. | ||||||
| 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: 2025-12-31), 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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited considerable fluctuation over the five-year period. Initial values indicated a relatively stable valuation, followed by a period of significant volatility and a subsequent return towards earlier levels.
- Enterprise Value (EV)
- Enterprise Value demonstrated an increasing trend overall, though not consistently. It rose from US$97,096 million in 2021 to US$122,947 million in 2022, before decreasing to US$109,266 million in 2023. A substantial increase was then observed in 2024, reaching US$158,992 million, and continued to climb to US$200,502 million in 2025.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA experienced a more erratic pattern. A decline was noted from US$11,329 million in 2021 to US$8,852 million in 2022. It recovered to US$10,496 million in 2023, but then fell sharply to US$4,434 million in 2024. A significant rebound occurred in 2025, with EBITDA reaching US$13,580 million.
- EV/EBITDA Ratio
- The EV/EBITDA ratio began at 8.57 in 2021 and increased to 13.89 in 2022, reflecting a higher valuation relative to earnings. It decreased to 10.41 in 2023. A dramatic increase was observed in 2024, reaching 35.86, driven by the combination of a rising EV and a declining EBITDA. The ratio then decreased substantially in 2025 to 14.76, as EBITDA increased while EV continued to rise, albeit at a slower pace than in the prior year.
The substantial increase in the EV/EBITDA ratio in 2024 warrants further investigation. The decline in EBITDA during that year, coupled with the increase in Enterprise Value, suggests a significant shift in market perception or underlying business performance. The subsequent decrease in the ratio in 2025, while still elevated compared to earlier years, indicates a partial correction as EBITDA recovered.
Overall, the period was characterized by volatility in both the components of the ratio and the ratio itself, suggesting dynamic changes in the company’s financial position and market valuation.