Stock Analysis on Net

Allergan Inc. (NYSE:AGN.)

$22.49

This company has been moved to the archive! The financial data has not been updated since February 19, 2015.

Enterprise Value to EBITDA (EV/EBITDA)

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

Allergan Inc., EBITDA calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Net earnings attributable to Allergan, Inc.
Add: Net income attributable to noncontrolling interest
Less: Discontinued operations
Add: Income tax expense
Earnings before tax (EBT)
Add: Interest expense
Earnings before interest and tax (EBIT)
Add: Depreciation and amortization
Earnings before interest, tax, depreciation and amortization (EBITDA)

Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).


The financial data reveals a consistent upward trend in the profitability measures of the company from 2010 through 2014, indicating overall financial growth and improved operational efficiency during this period.

Net Earnings Attributable to Allergan, Inc.
The net earnings show a significant increase from 600 thousand US dollars in 2010 to 1,524,200 thousand US dollars in 2014. There was a sharp rise between 2010 and 2011, followed by gradual growth with a slight dip in 2013 before reaching the highest level in 2014. This reflects enhanced profitability and likely effective cost management or revenue growth strategies.
Earnings Before Tax (EBT)
EBT increased steadily over the five-year period, from 170,800 thousand US dollars in 2010 to 1,989,300 thousand US dollars in 2014. This indicates a consistent expansion of earnings before taxation, supporting the trend seen in net earnings and suggesting efficient pre-tax earnings generation.
Earnings Before Interest and Tax (EBIT)
EBIT figures demonstrate a continuous growth pattern from 249,500 thousand US dollars in 2010 to 2,058,700 thousand US dollars in 2014. The steady rise in EBIT highlights improvements in core operating profitability and effective control over operating expenses excluding interest and taxes.
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
EBITDA shows a consistent upward momentum, increasing from 506,600 thousand US dollars in 2010 to 2,306,800 thousand US dollars in 2014. This suggests an overall strong operational performance, demonstrating the company’s ability to generate increasing cash flows from its operations over the years.

Overall, the data illustrates a robust financial performance, with all key earnings metrics growing significantly, which may imply successful strategic initiatives, expanding market presence, or operational improvements during the 2010-2014 timeframe.


Enterprise Value to EBITDA Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV)
Earnings before interest, tax, depreciation and amortization (EBITDA)
Valuation Ratio
EV/EBITDA
Benchmarks
EV/EBITDA, Competitors1
AbbVie Inc.
Amgen Inc.
Bristol-Myers Squibb Co.
Danaher Corp.
Eli Lilly & Co.
Gilead Sciences Inc.
Johnson & Johnson
Merck & Co. Inc.
Pfizer Inc.
Regeneron Pharmaceuticals Inc.
Thermo Fisher Scientific Inc.
Vertex Pharmaceuticals Inc.

Based on: 10-K (reporting date: 2014-12-31).

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

Allergan Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1
Earnings before interest, tax, depreciation and amortization (EBITDA)2
Valuation Ratio
EV/EBITDA3
Benchmarks
EV/EBITDA, Competitors4
AbbVie Inc.
Amgen Inc.
Bristol-Myers Squibb Co.
Danaher Corp.
Eli Lilly & Co.
Gilead Sciences Inc.
Johnson & Johnson
Merck & Co. Inc.
Pfizer Inc.
Regeneron Pharmaceuticals Inc.
Thermo Fisher Scientific Inc.
Vertex Pharmaceuticals Inc.

Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).

1 See details »

2 See details »

3 2014 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =

4 Click competitor name to see calculations.


Enterprise Value (EV)
The enterprise value demonstrated a consistent upward trend throughout the examined period. Beginning at approximately $21.8 billion in 2010, it increased annually to reach nearly $66.6 billion by the end of 2014. This substantial growth suggests significant expansion or increased market valuation during these years.
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
EBITDA experienced strong growth from 2010 to 2014, increasing from around $507 million to approximately $2.31 billion. Notably, there was a marked jump in EBITDA from 2010 to 2011, followed by steady annual increases thereafter. This upward trajectory reflects improved operational profitability over the period.
EV/EBITDA Ratio
The EV/EBITDA ratio showed significant fluctuation. It started very high at approximately 43 in 2010, then sharply declined to around 16 in 2011, remaining relatively stable through 2013 with slight increases. However, in 2014, the ratio rose markedly again to nearly 29. This pattern indicates varying valuation multiples relative to earnings, possibly reflecting market reappraisals or changes in investor sentiment during the span.