Name: Allergan PLC (NYSE:AGN) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

Allergan PLC, current enterprise value calculation

Current share price (P)	$192.99
No. shares of common stock outstanding	329,805,791
US$ in thousands
Common equity (market value)¹	63,649,220)
Add: Preferred shares, $0.0001 par value per share (per books)	—)
Add: Noncontrolling interest (per books)	22,800)
Total equity	63,672,020)
Add: Current portion of long-term debt and capital leases (per books)	4,532,500)
Add: Long-term debt and capital leases, excluding current portion (per books)	18,116,500)
Total equity and debt	86,321,020)
Less: Cash and cash equivalents	2,503,300)
Less: Marketable securities	3,411,600)
Enterprise value (EV)	80,406,120)

Based on: 10-K (reporting date: 2019-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 192.99 × 329,805,791

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Allergan PLC, EV calculation

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Share price^1, 2	$198.00	$139.07	$164.04	$245.37	$298.07
No. shares of common stock outstanding¹	329,002,015	332,614,474	330,320,420	335,224,713	394,687,384
US$ in thousands
Common equity (market value)³	65,142,399)	46,256,695)	54,185,762)	82,254,088)	117,644,469)
Add: Preferred shares, $0.0001 par value per share (book value)	—)	—)	4,929,700)	4,929,700)	4,929,700)
Add: Noncontrolling interest (book value)	22,800)	16,900)	16,000)	7,800)	(2,100)
Total equity	65,165,199)	46,273,595)	59,131,462)	87,191,588)	122,572,069)
Add: Current portion of long-term debt and capital leases (book value)	4,532,500)	868,300)	4,231,800)	2,797,900)	2,432,800)
Add: Long-term debt and capital leases, excluding current portion (book value)	18,116,500)	22,929,400)	25,843,500)	29,970,800)	40,293,400)
Total equity and debt	87,814,199)	70,071,295)	89,206,762)	119,960,288)	165,298,269)
Less: Cash and cash equivalents	2,503,300)	880,400)	1,817,200)	1,724,000)	1,096,000)
Less: Marketable securities	3,411,600)	1,026,900)	4,632,100)	11,501,500)	9,300)
Enterprise value (EV)	81,899,299)	68,163,995)	82,757,462)	106,734,788)	164,192,969)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Allergan PLC Annual Report.

³ 2019 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 198.00 × 329,002,015

Between 2015 and 2019, the valuation metrics exhibit a significant contraction followed by a period of recovery. The primary trend is characterized by a consistent decline in enterprise value and equity from 2015 through 2018, with a notable reversal occurring in 2019.

Enterprise Value (EV) Dynamics: The Enterprise Value experienced a substantial reduction, falling from 164.19 billion US$ in 2015 to a trough of 68.16 billion US$ in 2018. This represents a compression of approximately 58.5% over a three-year period. A partial recovery was observed in 2019, with the value rising to 81.90 billion US$.
Equity Market and Book Value Trends: The market value of common equity followed a trajectory nearly identical to the Enterprise Value, decreasing from 117.64 billion US$ in 2015 to 46.26 billion US$ in 2018, before rebounding to 65.14 billion US$ in 2019. Total equity mirrored this pattern, falling from 122.57 billion US$ to 46.27 billion US$ in the same period, indicating a substantial reduction in the company's book value alongside its market valuation.
Total Capitalization Analysis: The aggregate of total equity and debt decreased steadily from 165.30 billion US$ in 2015 to 70.07 billion US$ in 2018. This downward movement suggests a significant reduction in the total capital structure or an aggressive deleveraging process during these years, followed by an increase to 87.81 billion US$ in 2019.
Valuation Correlation: A strong positive correlation is evident between the market value of common equity and the overall enterprise value. The synchronized movement of these figures suggests that fluctuations in equity valuation were the primary drivers of the changes in total enterprise value throughout the five-year observation period.

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Allergan PLC (NYSE:AGN)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)