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 (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
| 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
| 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).
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. |