Stock Analysis on Net
Stock Analysis on Net
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Gilead Sciences Inc. (NASDAQ:GILD)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level


Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Gilead Sciences Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to Gilead 5,386  5,455  4,628  13,501  18,108 
Add: Net income attributable to noncontrolling interest (22) 16  (13) (2)
Add: Income tax expense (204) 2,339  8,885  3,609  3,553 
Earnings before tax (EBT) 5,160  7,799  13,529  17,097  21,659 
Add: Interest expense 995  1,077  1,118  964  688 
Earnings before interest and tax (EBIT) 6,155  8,876  14,647  18,061  22,347 
Add: Depreciation expense 255  226  233  177  161 
Add: Amortization expense 1,149  1,203  1,053  981  937 
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,559  10,305  15,933  19,219  23,445 

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Gilead Sciences Inc.’s EBITDA decreased from 2017 to 2018 and from 2018 to 2019.

Enterprise Value to EBITDA Ratio, Current

Gilead Sciences Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 96,100 
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,559 
Valuation Ratio
EV/EBITDA 12.71
Benchmarks
EV/EBITDA, Competitors1
Abbott Laboratories 23.04
AbbVie Inc. 13.89
Allergan PLC 46.61
Amgen Inc. 13.26
Biogen Inc. 5.94
Bristol-Myers Squibb Co. 21.88
Eli Lilly & Co. 24.53
Illumina Inc. 38.40
Johnson & Johnson 15.55
Merck & Co. Inc. 13.10
Pfizer Inc. 9.13
Regeneron Pharmaceuticals Inc. 25.23
Vertex Pharmaceuticals Inc. 46.85
Zoetis Inc. 28.58
EV/EBITDA, Sector
Pharmaceuticals & Biotechnology 15.62
EV/EBITDA, Industry
Health Care 16.49

Based on: 10-K (filing date: 2020-02-25).

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

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 88,947  80,645  113,360  107,075  130,291 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 7,559  10,305  15,933  19,219  23,445 
Valuation Ratio
EV/EBITDA3 11.77 7.83 7.11 5.57 5.56
Benchmarks
EV/EBITDA, Competitors4
Abbott Laboratories 21.70 21.41 20.08 25.22 12.40
AbbVie Inc. 13.68 17.98 20.80 12.73 13.50
Allergan PLC 47.47 84.90 20.95 59.52
Amgen Inc. 12.26 9.49 9.37 9.60 9.91
Biogen Inc. 7.60 9.55 11.68 9.99 11.42
Bristol-Myers Squibb Co. 23.84 11.97 17.25 14.26 39.09
Eli Lilly & Co. 21.40 23.29 22.72 18.40 19.15
Illumina Inc. 30.37 36.75 25.56 32.43 30.36
Johnson & Johnson 16.28 14.42 15.04 13.07 11.54
Merck & Co. Inc. 13.66 16.05 13.74 17.75 12.35
Pfizer Inc. 9.17 13.48 11.92 14.86 13.02
Regeneron Pharmaceuticals Inc. 14.80 15.50 15.13 26.10 28.77
Vertex Pharmaceuticals Inc. 37.82 60.10 342.33 276.52
Zoetis Inc. 30.11 20.74 21.37 18.19 28.57
EV/EBITDA, Sector
Pharmaceuticals & Biotechnology 15.29 15.08 15.14 13.43 13.34
EV/EBITDA, Industry
Health Care 16.24 15.77 15.70 13.97 13.89

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 88,947 ÷ 7,559 = 11.77

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Gilead Sciences Inc.’s EV/EBITDA ratio increased from 2017 to 2018 and from 2018 to 2019.