Enterprise Value (EV)
Current Enterprise Value (EV)
Illumina Inc., current enterprise value calculation
| Current share price (P) | $408.14 |
| No. shares of common stock outstanding | 156,300,000 |
| US$ in millions | |
| Common equity (market value)1 | 63,792) |
| Add: Preferred stock, $0.01 par value; no shares issued and outstanding (per books) | —) |
| Add: Noncontrolling interests (per books) | —) |
| Total equity | 63,792) |
| Add: Build-to-suit lease liability (per books) | —) |
| Add: Long-term debt, current portion (per books) | 511) |
| Add: Long-term debt, excluding current portion (per books) | 673) |
| Total equity and debt | 64,976) |
| Less: Cash and cash equivalents | 1,810) |
| Less: Short-term investments | 1,662) |
| Enterprise value (EV) | 61,504) |
Based on: 10-K (reporting date: 2020-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 408.14 × 156,300,000
Historical Enterprise Value (EV)
Illumina Inc., EV calculation
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Illumina Inc. Annual Report.
3 2020 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 494.24 × 145,900,000
The financial trajectory from 2016 through 2020 demonstrates a substantial and sustained increase in the overall valuation of the entity. The Enterprise Value (EV) expanded from US$ 23,847 million in 2016 to US$ 69,822 million by the end of 2020, reflecting a significant appreciation in the total value of the business operations over the four-year period.
- Market Equity Growth
- Common equity market value exhibited a consistent upward trend, rising from US$ 24,060 million in 2016 to US$ 72,110 million in 2020. A period of relative stabilization is observed between 2018 and 2019, followed by an accelerated growth phase in 2020, where market value increased by approximately 65.7% year-over-year.
- Enterprise Value Analysis
- The Enterprise Value followed a pattern closely mirrored by the market value of equity. After steady growth from 2016 to 2018, a marginal contraction occurred in 2019, with EV dipping from US$ 41,525 million to US$ 41,239 million, before surging to US$ 69,822 million in 2020. The observation that EV remained consistently lower than the market value of common equity suggests the presence of a net cash position, where cash and cash equivalents exceeded total debt.
- Capitalization and Leverage
- Total equity and debt values remained tightly correlated with the equity market value throughout the period. Total equity and debt rose from US$ 25,405 million in 2016 to US$ 73,294 million in 2020. The narrow gap between total equity and total equity and debt indicates that the organization maintained a conservative leverage profile, with equity serving as the primary component of the capital structure.
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