Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Allergan Inc., EBITDA calculation
US$ in thousands
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).
| 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. | Allergan Inc. EBITDA increased from 2012 to 2013 and from 2013 to 2014. |
Enterprise Value to EBITDA Ratio, Current
Allergan Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 66,591,934) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 2,306,800) |
| Valuation Ratio | |
| EV/EBITDA | 28.87 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AbbVie Inc. | 19.98 |
| Amgen Inc. | 13.51 |
| Bristol-Myers Squibb Co. | 6.52 |
| Danaher Corp. | 26.42 |
| Eli Lilly & Co. | 83.81 |
| Gilead Sciences Inc. | 9.64 |
| Johnson & Johnson | 15.62 |
| Merck & Co. Inc. | 50.62 |
| Pfizer Inc. | 21.74 |
| Regeneron Pharmaceuticals Inc. | 19.47 |
| Thermo Fisher Scientific Inc. | 22.41 |
| Zoetis Inc. | 20.08 |
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
| 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 | 66,591,936) | 35,980,729) | 30,534,136) | 26,076,707) | 21,771,762) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 2,306,800) | 2,060,400) | 1,853,500) | 1,624,900) | 506,600) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 28.87 | 17.46 | 16.47 | 16.05 | 42.98 | |
| 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. | — | — | — | — | — | |
| Zoetis 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).
3 2014 Calculation
EV/EBITDA = EV ÷ EBITDA
= 66,591,936 ÷ 2,306,800 = 28.87
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. | Allergan Inc. EV/EBITDA ratio increased from 2012 to 2013 and from 2013 to 2014. |