Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Illumina Inc. (NASDAQ:ILMN)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Illumina Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Net income attributable to Illumina stockholders 1,002  826  726  463  462 
Add: Net income attributable to noncontrolling interest (12) (44) (48) (35) (4)
Add: Income tax expense 128  112  365  133  126 
Earnings before tax (EBT) 1,118  894  1,043  561  583 
Add: Interest expense 52  57  37  33  42 
Earnings before interest and tax (EBIT) 1,170  951  1,080  594  625 
Add: Depreciation expense 151  140  110  90  73 
Add: Amortization of intangible assets 37  39  46  51  54 
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,358  1,130  1,236  735  752 

Based on: 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-03-02).

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. Illumina Inc.’s EBITDA decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Enterprise Value to EBITDA Ratio, Current

Illumina Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 54,698 
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,358 
Valuation Ratio
EV/EBITDA 40.28
Benchmarks
EV/EBITDA, Competitors1
Abbott Laboratories 27.54
AbbVie Inc. 18.39
Amgen Inc. 13.10
Bristol-Myers Squibb Co. 24.71
Eli Lilly & Co. 29.40
Gilead Sciences Inc. 11.17
Johnson & Johnson 17.72
Merck & Co. Inc. 14.15
Pfizer Inc. 9.77
Regeneron Pharmaceuticals Inc. 20.40
Vertex Pharmaceuticals Inc. 36.57
Zoetis Inc. 33.57
EV/EBITDA, Sector
Pharmaceuticals & Biotechnology 17.38
EV/EBITDA, Industry
Health Care 19.25

Based on: 10-K (filing date: 2020-02-11).

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

Illumina Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 41,239  41,525  31,596  23,847  22,822 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 1,358  1,130  1,236  735  752 
Valuation Ratio
EV/EBITDA3 30.37 36.75 25.56 32.43 30.36
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
Amgen Inc. 12.26 9.49 9.37 9.60 9.91
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
Gilead Sciences Inc. 11.77 7.83 7.11 5.57 5.56
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 15.33 14.94 14.37 13.26 12.26
EV/EBITDA, Industry
Health Care 16.46 15.84 15.22 13.93 13.15

Based on: 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-03-02).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 41,239 ÷ 1,358 = 30.37

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. Illumina Inc.’s EV/EBITDA ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.