Stock Analysis on Net
Stock Analysis on Net
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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 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Net income attributable to Illumina stockholders 656  1,002  826  726  463 
Add: Net income attributable to noncontrolling interest —  (12) (44) (48) (35)
Add: Income tax expense 200  128  112  365  133 
Earnings before tax (EBT) 856  1,118  894  1,043  561 
Add: Interest expense 49  52  57  37  33 
Earnings before interest and tax (EBIT) 905  1,170  951  1,080  594 
Add: Depreciation expense 156  151  140  110  90 
Add: Amortization of intangible assets 31  37  39  46  51 
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,092  1,358  1,130  1,236  735 

Based on: 10-K (filing date: 2021-02-17), 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).

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 increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

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) 70,056 
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,092 
Valuation Ratio
EV/EBITDA 64.15
Benchmarks
EV/EBITDA, Competitors1
AbbVie Inc. 23.24
Amgen Inc. 12.67
Eli Lilly & Co. 27.74
Gilead Sciences Inc. 26.75
Johnson & Johnson 19.33
Merck & Co. Inc. 16.62
Pfizer Inc. 19.03
Regeneron Pharmaceuticals Inc. 15.01
Thermo Fisher Scientific Inc. 21.84
Zoetis Inc. 37.58
EV/EBITDA, Sector
Pharmaceuticals, Biotechnology & Life Sciences 20.56
EV/EBITDA, Industry
Health Care 21.06

Based on: 10-K (filing date: 2021-02-17).

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

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Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 69,822  41,239  41,525  31,596  23,847 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 1,092  1,358  1,130  1,236  735 
Valuation Ratio
EV/EBITDA3 63.94 30.37 36.75 25.56 32.43
Benchmarks
EV/EBITDA, Competitors4
AbbVie Inc. 21.34 13.68 17.98 20.80 12.73
Amgen Inc. 12.24 12.26 9.49 9.37 9.60
Eli Lilly & Co. 23.67 21.40 23.29 22.72 18.40
Gilead Sciences Inc. 24.90 11.77 7.83 7.11 5.57
Johnson & Johnson 18.20 16.28 14.42 15.04 13.07
Merck & Co. Inc. 16.05 13.66 16.05 13.74 17.75
Pfizer Inc. 15.78 9.17 13.48 11.92 14.86
Regeneron Pharmaceuticals Inc. 12.70 14.80 15.50 15.13 26.10
Thermo Fisher Scientific Inc. 18.73 19.74 19.41 20.47 18.21
Zoetis Inc. 30.97 30.11 20.74 21.37 18.19
EV/EBITDA, Sector
Pharmaceuticals, Biotechnology & Life Sciences 18.60 14.35 14.66 13.83 12.85
EV/EBITDA, Industry
Health Care 18.53 15.45 15.65 14.36 13.11

Based on: 10-K (filing date: 2021-02-17), 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).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 69,822 ÷ 1,092 = 63.94

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 decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.