Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Abbott Laboratories, EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
The financial information reveals trends in profitability metrics over a five-year period. Generally, the figures demonstrate fluctuations, with a notable peak in 2024 followed by a decline in 2025 for net earnings. Examining the progression of earnings metrics from net earnings through EBITDA provides insight into the company’s operational performance and capital structure impact.
- Overall Earnings Trend
- Net earnings experienced a slight decrease from 2021 to 2022, followed by a more substantial decline in 2023. A significant increase occurred in 2024, but earnings then decreased again in 2025, falling below the 2022 level. This volatility suggests potential impacts from non-operating factors or significant changes in the business environment.
- EBITDA Performance
- EBITDA exhibited a relatively stable pattern from 2021 to 2023, with a gradual decrease. Similar to net earnings, EBITDA increased substantially in 2024 before decreasing in 2025. The EBITDA margin, while not explicitly calculated, appears to have been impacted by the fluctuations in net earnings, particularly the large increase in 2024 and subsequent decrease in 2025.
- Relationship between Earnings Metrics
- The difference between net earnings and EBT indicates the impact of taxes on profitability. The difference between EBT and EBIT reflects the impact of interest expense. The difference between EBIT and EBITDA highlights the effect of depreciation and amortization. The relatively consistent difference between EBIT and EBITDA across the years suggests a stable depreciation and amortization policy. The larger gap between net earnings and EBT in 2024 may indicate a change in the effective tax rate or a significant tax benefit recognized in that year.
- EBITDA as a Proxy for Operational Performance
- EBITDA provides a measure of core operational profitability before considering financing and accounting decisions. The decrease in EBITDA from 2021 to 2023 suggests potential challenges in maintaining operational efficiency or revenue growth during that period. The substantial increase in 2024 indicates a significant improvement in operational performance, which was not fully sustained into 2025.
In conclusion, the observed trends suggest a period of fluctuating profitability. While 2024 represented a peak in earnings, the subsequent decline in 2025 warrants further investigation to understand the underlying drivers and potential implications for future performance.
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Enterprise Value to EBITDA Ratio, Current
Abbott Laboratories, current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 186,827) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 12,075) |
| Valuation Ratio | |
| EV/EBITDA | 15.47 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Elevance Health Inc. | 6.20 |
| Intuitive Surgical Inc. | 41.11 |
| Medtronic PLC | 14.29 |
| UnitedHealth Group Inc. | 13.05 |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | 14.54 |
| EV/EBITDA, Industry | |
| Health Care | 16.55 |
Based on: 10-K (reporting date: 2025-12-31).
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
Abbott Laboratories, historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 199,616) | 240,390) | 205,452) | 192,330) | 213,980) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 12,075) | 10,790) | 10,544) | 12,131) | 12,282) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 16.53 | 22.28 | 19.49 | 15.85 | 17.42 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Elevance Health Inc. | 7.34 | 8.15 | 10.24 | 10.26 | 10.05 | |
| Intuitive Surgical Inc. | 41.18 | 63.04 | 53.08 | 40.96 | 44.10 | |
| Medtronic PLC | 14.15 | 14.63 | 15.28 | 14.99 | 24.41 | |
| UnitedHealth Group Inc. | 14.05 | 17.17 | 13.60 | 15.11 | 17.39 | |
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | 15.33 | 18.57 | 15.60 | 15.26 | 18.05 | |
| EV/EBITDA, Industry | ||||||
| Health Care | 17.72 | 21.03 | 20.27 | 14.00 | 14.33 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 199,616 ÷ 12,075 = 16.53
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited fluctuations over the five-year period. Initial values decreased, followed by increases, and then a final decrease. Enterprise Value and EBITDA both experienced changes throughout the period, influencing the observed ratio movements.
- Enterprise Value to EBITDA Ratio
- The ratio began at 17.42 in 2021, decreasing to 15.85 in 2022. A subsequent increase was observed, reaching 19.49 in 2023, and further rising to a peak of 22.28 in 2024. The ratio then decreased to 16.53 in 2025.
- Enterprise Value Trend
- Enterprise Value decreased from US$213,980 million in 2021 to US$192,330 million in 2022. It then increased to US$205,452 million in 2023 and reached US$240,390 million in 2024 before declining to US$199,616 million in 2025.
- EBITDA Trend
- EBITDA experienced a slight decrease from US$12,282 million in 2021 to US$12,131 million in 2022. It then decreased more substantially to US$10,544 million in 2023, followed by a modest increase to US$10,790 million in 2024. Finally, EBITDA increased to US$12,075 million in 2025.
The increase in the EV/EBITDA ratio in 2023 and 2024 coincided with an increase in Enterprise Value and a relatively smaller increase in EBITDA. Conversely, the decrease in the ratio in 2025 was associated with a decrease in Enterprise Value and an increase in EBITDA. These movements suggest that changes in Enterprise Value had a more significant impact on the ratio than changes in EBITDA during the observed period.
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