Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

Enterprise Value to EBITDA (EV/EBITDA) 

Microsoft Excel

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

AbbVie Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net earnings attributable to AbbVie Inc. 4,863 11,836 11,542 4,616 7,882
Add: Net income attributable to noncontrolling interest 10 9 7 6
Add: Income tax expense 1,377 1,632 1,440 (1,224) 544
Earnings before tax (EBT) 6,250 13,477 12,989 3,398 8,426
Add: Interest expense 2,224 2,230 2,423 2,454 1,784
Earnings before interest and tax (EBIT) 8,474 15,707 15,412 5,852 10,210
Add: Depreciation 752 778 803 666 464
Add: Amortization of intangible assets 7,946 7,689 7,718 5,805 1,553
Earnings before interest, tax, depreciation and amortization (EBITDA) 17,172 24,174 23,933 12,323 12,227

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. AbbVie Inc. EBITDA increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 360,826
Earnings before interest, tax, depreciation and amortization (EBITDA) 17,172
Valuation Ratio
EV/EBITDA 21.01
Benchmarks
EV/EBITDA, Competitors1
Amgen Inc. 13.36
Bristol-Myers Squibb Co. 6.89
Eli Lilly & Co. 86.25
Gilead Sciences Inc. 10.43
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

AbbVie 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)1 357,064 321,803 321,636 263,033 167,265
Earnings before interest, tax, depreciation and amortization (EBITDA)2 17,172 24,174 23,933 12,323 12,227
Valuation Ratio
EV/EBITDA3 20.79 13.31 13.44 21.34 13.68
Benchmarks
EV/EBITDA, Competitors4
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
Gilead Sciences Inc. 10.41 13.89 8.57 24.90 11.77
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
= 357,064 ÷ 17,172 = 20.79

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. AbbVie Inc. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.