Stock Analysis on Net

Gilead Sciences Inc. (NASDAQ:GILD)

Enterprise Value to EBITDA (EV/EBITDA)

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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, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income attributable to Gilead 5,665 4,592 6,225 123 5,386
Add: Net income attributable to noncontrolling interest (52) (26) (24) (34) (22)
Add: Income tax expense 1,246 1,248 2,077 1,580 (204)
Earnings before tax (EBT) 6,859 5,814 8,278 1,669 5,160
Add: Interest expense 944 935 1,001 984 995
Earnings before interest and tax (EBIT) 7,803 6,749 9,279 2,653 6,155
Add: Depreciation expense 354 323 329 288 255
Add: Amortization expense 2,339 1,780 1,721 1,192 1,149
Earnings before interest, tax, depreciation and amortization (EBITDA) 10,496 8,852 11,329 4,133 7,559

Based on: 10-K (reporting date: 2023-12-31), 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).

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. EBITDA decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Enterprise Value to EBITDA Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 109,440
Earnings before interest, tax, depreciation and amortization (EBITDA) 10,496
Valuation Ratio
EV/EBITDA 10.43
Benchmarks
EV/EBITDA, Competitors1
AbbVie Inc. 21.01
Amgen Inc. 13.36
Bristol-Myers Squibb Co. 6.89
Eli Lilly & Co. 86.25
Johnson & Johnson 16.61
Merck & Co. Inc. 48.61
Pfizer Inc. 22.73
Regeneron Pharmaceuticals Inc. 20.82
Thermo Fisher Scientific Inc. 22.65
Vertex Pharmaceuticals Inc. 20.52
EV/EBITDA, Sector
Pharmaceuticals, Biotechnology & Life Sciences 22.39
EV/EBITDA, Industry
Health Care 18.77

Based on: 10-K (reporting date: 2023-12-31).

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 109,266 122,947 97,096 102,914 88,947
Earnings before interest, tax, depreciation and amortization (EBITDA)2 10,496 8,852 11,329 4,133 7,559
Valuation Ratio
EV/EBITDA3 10.41 13.89 8.57 24.90 11.77
Benchmarks
EV/EBITDA, Competitors4
AbbVie Inc. 20.79 13.31 13.44 21.34 13.68
Amgen Inc. 14.13 12.97 13.22 12.24 12.26
Bristol-Myers Squibb Co. 6.51 9.46 8.65 34.35 23.84
Eli Lilly & Co. 85.33 37.74 29.85 23.67 21.40
Johnson & Johnson 16.45 14.78 14.47 18.20 16.28
Merck & Co. Inc. 51.30 13.91 12.18 16.05 13.66
Pfizer Inc. 22.50 6.12 8.64 15.78 9.17
Regeneron Pharmaceuticals Inc. 20.16 15.27 6.68 12.70 14.80
Thermo Fisher Scientific Inc. 21.83 20.25 20.21 18.72 19.74
Vertex Pharmaceuticals Inc. 21.57 14.91 18.92 14.81 37.82
EV/EBITDA, Sector
Pharmaceuticals, Biotechnology & Life Sciences 22.37 13.30 12.71 18.44 14.72
EV/EBITDA, Industry
Health Care 18.75 13.67 13.83 16.25 14.26

Based on: 10-K (reporting date: 2023-12-31), 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).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 109,266 ÷ 10,496 = 10.41

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. EV/EBITDA ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.