Enterprise Value to EBITDA (EV/EBITDA)
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AbbVie Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Selected Financial Data since 2012
- Net Profit Margin since 2012
- Return on Assets (ROA) since 2012
- Price to Earnings (P/E) since 2012
- Analysis of Revenues
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
AbbVie Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
- Net Earnings Attributable to AbbVie Inc.
- The net earnings increased significantly from 4,616 million US dollars in 2020 to a peak of 11,836 million US dollars in 2022. However, there was a marked decline in the subsequent years, dropping to 4,863 million in 2023 and further to 4,278 million in 2024. This indicates volatility in profitability, with a strong performance mid-period but weakening toward the end.
- Earnings Before Tax (EBT)
- EBT exhibited a similar pattern to net earnings, rising from 3,398 million US dollars in 2020 to a high of 13,477 million in 2022. Following this peak, the figure decreased sharply to 6,250 million in 2023 and continued down to 3,716 million in 2024. The substantial gains up to 2022 suggest improved operational or other income, but the subsequent decline points to challenges affecting taxable income.
- Earnings Before Interest and Tax (EBIT)
- EBIT showed consistent growth from 5,852 million US dollars in 2020 to 15,707 million in 2022. After this peak, there was a significant reduction to 8,474 million in 2023, followed by a further drop to 6,524 million in 2024. Despite the decrease, EBIT remained higher in 2024 than in 2020, implying some retained operational strength even as profitability weakened.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA followed the upward trend from 12,323 million US dollars in 2020 to 24,174 million in 2022. After the peak in 2022, EBITDA declined to 17,172 million in 2023 and then to 14,910 million in 2024. Although the downward trend after 2022 is evident, EBITDA in 2024 remains above the 2020 level, indicating that cash flow generation has somewhat decreased but not below previous baseline levels.
- Overall Trends and Insights
- The data reveals a strong performance trend that culminated in 2022 across all earnings measures, followed by a noticeable downward trend in both 2023 and 2024. The peak in 2022 could be attributed to exceptional factors such as increased sales, cost efficiencies, or one-time gains. The subsequent decline suggests emerging challenges, possibly including increased costs, reduced sales, or other operational difficulties. Despite the decreases after 2022, EBIT and EBITDA levels in 2024 remain above 2020 figures, indicating some resilience in operational profitability and cash flow generation. Net earnings and EBT, however, declined to levels closer to those seen in 2020 by 2024, reflecting pressures on net profitability and taxable income in the most recent years.
Enterprise Value to EBITDA Ratio, Current
AbbVie Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Amgen Inc. | |
| Bristol-Myers Squibb Co. | |
| Danaher Corp. | |
| Eli Lilly & Co. | |
| Gilead Sciences Inc. | |
| Johnson & Johnson | |
| Merck & Co. Inc. | |
| Pfizer Inc. | |
| Regeneron Pharmaceuticals Inc. | |
| Thermo Fisher Scientific Inc. | |
| Vertex Pharmaceuticals Inc. | |
| EV/EBITDA, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | |
| EV/EBITDA, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2024-12-31).
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
AbbVie Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| EV/EBITDA, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a consistent upward trend over the five-year period. Starting at $263.0 billion in 2020, it increased significantly each year, reaching $402.1 billion in 2024. This reflects a growth of approximately 53% from the beginning to the end of the period, indicating a steadily expanding valuation of the company.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA displayed volatility throughout the timeframe. It nearly doubled from $12.3 billion in 2020 to approximately $24.2 billion in 2022, demonstrating a strong improvement in operating profitability initially. However, from 2022 onward, EBITDA decreased markedly to $17.2 billion in 2023 and further down to $14.9 billion in 2024. This decline suggests emerging challenges impacting operational earnings despite the growing enterprise value.
- EV/EBITDA Ratio
- The EV/EBITDA ratio started at a high level of 21.34 in 2020, then decreased sharply to a low of approximately 13.3 in 2022, which may indicate an improvement in valuation relative to earnings during that period. Following 2022, the ratio increased substantially to 26.97 by 2024, the highest in the series. This rising ratio reflects the combination of continued enterprise value growth coupled with declining EBITDA, potentially signaling an elevated market valuation relative to operating earnings and possibly increased investor expectations or risk factors.