Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Abbott Laboratories (NYSE:ABT)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Abbott Laboratories, EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net earnings 4,495  3,687  2,368  477  1,400 
Less: Net earnings from discontinued operations, net of taxes 24  —  34  124  337 
Add: Income tax expense 497  390  539  1,878  350 
Earnings before tax (EBT) 4,968  4,077  2,873  2,231  1,413 
Add: Interest expense 546  670  826  904  431 
Earnings before interest and tax (EBIT) 5,514  4,747  3,699  3,135  1,844 
Add: Depreciation 1,195  1,078  1,100  1,046  803 
Add: Amortization of intangible assets 2,132  1,936  2,178  1,975  550 
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,841  7,761  6,977  6,156  3,197 

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

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. Abbott Laboratories’s EBITDA increased from 2018 to 2019 and from 2019 to 2020.

Enterprise Value to EBITDA Ratio, Current

Abbott Laboratories, current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 220,506 
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,841 
Valuation Ratio
EV/EBITDA 24.94
Benchmarks
EV/EBITDA, Competitors1
AbbVie Inc. 23.01
Amgen Inc. 12.79
Bristol-Myers Squibb Co. 36.54
Eli Lilly & Co. 22.44
Gilead Sciences Inc. 26.72
Illumina Inc. 47.83
Johnson & Johnson 19.13
Merck & Co. Inc. 16.84
Pfizer Inc. 18.39
Regeneron Pharmaceuticals Inc. 13.21
Vertex Pharmaceuticals Inc. 15.04
Zoetis Inc. 31.75
EV/EBITDA, Sector
Pharmaceuticals & Biotechnology 20.44
EV/EBITDA, Industry
Health Care 21.31

Based on: 10-K (filing date: 2021-02-19).

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 229,787  168,424  149,398  123,592  80,634 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 8,841  7,761  6,977  6,156  3,197 
Valuation Ratio
EV/EBITDA3 25.99 21.70 21.41 20.08 25.22
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
Bristol-Myers Squibb Co. 34.35 23.84 11.97 17.25 14.26
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
Illumina Inc. 63.94 30.37 36.75 25.56 32.43
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
Vertex Pharmaceuticals Inc. 14.81 37.82 60.10 342.33 276.52
Zoetis Inc. 30.97 30.11 20.74 21.37 18.19
EV/EBITDA, Sector
Pharmaceuticals & Biotechnology 19.73 15.33 14.94 14.37 13.26
EV/EBITDA, Industry
Health Care 19.97 16.46 15.84 15.22 13.93

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 229,787 ÷ 8,841 = 25.99

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. Abbott Laboratories’s EV/EBITDA ratio increased from 2018 to 2019 and from 2019 to 2020.