Enterprise Value to EBITDA (EV/EBITDA)
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Abbott Laboratories pages available for free this week:
- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Abbott Laboratories, 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).
The financial data reveals several trends in the company's earnings and profitability over the five-year period.
- Net Earnings
- Net earnings experienced significant growth from 2020 to 2021, increasing from 4,495 million US dollars to 7,071 million. This was followed by a slight decline in 2022 to 6,933 million and a more pronounced drop in 2023 to 5,723 million. The year 2024 saw a substantial rebound, with net earnings soaring to 13,402 million, marking the highest value in the period.
- Earnings Before Tax (EBT)
- EBT showed a generally increasing trend from 4,968 million in 2020 to a peak of 8,306 million in 2022. In 2023 there was a decline to 6,664 million, and a mild recovery occurred in 2024 with EBT reaching 7,013 million. Overall, EBT fluctuated but remained higher than the 2020 baseline, without matching the peak of 2022.
- Earnings Before Interest and Tax (EBIT)
- EBIT demonstrated a pattern similar to EBT, rising from 5,514 million in 2020 to 8,864 million in 2022 before declining to 7,301 million in 2023. In 2024, EBIT increased modestly to 7,572 million. The trend indicates strong profitability until 2022, followed by a slight retreat and partial recovery thereafter.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA grew markedly from 8,841 million in 2020 to 12,282 million in 2021, indicating increased overall operational performance. It slightly decreased to 12,131 million in 2022 and further declined to 10,544 million in 2023. However, a small improvement was seen in 2024, reaching 10,790 million. This suggests some pressure on operating cash flow in the later years, despite recovering partially in the most recent period.
In summary, the data presents a peak in most profitability metrics around 2021-2022, followed by a downturn in 2023. Net earnings exhibit a distinctive recovery and growth surge in 2024, unlike EBT, EBIT, and EBITDA, which show more modest increases. This may imply improved factors contributing to net earnings specifically, perhaps from non-operational sources or tax effects. The overall trend suggests resilience with some volatility in earnings performance across the years analyzed.
Enterprise Value to EBITDA Ratio, Current
Abbott Laboratories, 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 | |
| CVS Health Corp. | |
| Elevance Health Inc. | |
| Intuitive Surgical Inc. | |
| Medtronic PLC | |
| UnitedHealth Group Inc. | |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | |
| 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
Abbott Laboratories, 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 | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | ||||||
| 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 shows a decreasing trend from 2020 to 2022, declining from 229,787 million US dollars to 192,330 million US dollars. In 2023, the value rises moderately to 205,452 million US dollars and experiences a further notable increase in 2024, reaching 240,390 million US dollars. This pattern indicates an initial contraction in perceived company value followed by a recovery and subsequent growth towards the end of the period.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA increases significantly from 8,841 million US dollars in 2020 to a peak of 12,282 million US dollars in 2021. It experiences a slight decline in 2022 to 12,131 million US dollars, followed by a more marked decrease to 10,544 million US dollars in 2023. In 2024, EBITDA shows a modest recovery, reaching 10,790 million US dollars. Overall, EBITDA demonstrates a pattern of initial growth, a moderate decline, and partial recovery.
- EV/EBITDA Ratio
- The EV/EBITDA ratio decreases substantially from 25.99 in 2020 to 15.85 in 2022, reflecting improved valuation relative to earnings during this period. In 2023, this ratio rises to 19.49 and continues to increase to 22.28 in 2024, suggesting a shift towards a higher valuation multiple relative to EBITDA. This reversal may imply changing market perceptions or expectations regarding future earnings or risk.
- Summary
- The data reveal a phase of contraction in company valuation accompanied by rising EBITDA in the early years, followed by a period of valuation stabilization and recovery. The initial decline in enterprise value alongside increasing EBITDA from 2020 to 2021 led to a falling EV/EBITDA ratio, likely indicating improved earnings performance relative to enterprise value. Subsequently, enterprise value increased faster relative to EBITDA, causing the ratio to rise again in 2023 and 2024. This pattern may reflect market revaluation driven by factors beyond EBITDA growth, possibly including strategic developments or external market conditions.