Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
AmerisourceBergen Corp., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
- Net Income (Loss) Attributable to AmerisourceBergen Corporation
- The net income figures exhibit significant volatility over the observed periods. Initially, net income rose markedly from approximately $364 million in 2017 to a peak of about $1.66 billion in 2018. However, a decline followed in 2019, with net income reducing to roughly $855 million. A pronounced loss occurred in 2020, with net income dropping to negative $3.41 billion. Subsequent recovery is evident in 2021 and 2022, with net income returning to positive territory, measuring approximately $1.54 billion and $1.70 billion respectively, indicating resilience and recovery post the 2020 downturn.
- Earnings Before Tax (EBT)
- The earnings before tax show a pattern consistent with net income. From 2017 through 2018, EBT increased from approximately $918 million to $1.18 billion. This was followed by a decline to about $967 million in 2019. A severe negative EBT of approximately $5.29 billion was recorded in 2020, mirroring the substantial net income loss that year. The financial performance improved substantially in the next two years, with EBT reaching $2.22 billion in 2021 and slightly decreasing to $2.18 billion in 2022, denoting a stabilization after the drastic downturn.
- Earnings Before Interest and Tax (EBIT)
- The EBIT values follow the trend of EBT, reflecting underlying operating performance. EBIT rose from about $1.07 billion in 2017 to $1.37 billion in 2018, then declined to approximately $1.16 billion in 2019. A substantial negative EBIT of around $5.14 billion occurred in 2020, coinciding with the overall financial downturn. Recovery is notable in 2021 and 2022, with EBIT increasing to about $2.40 billion and $2.42 billion respectively, suggesting effective operational adjustments and recovery post-2020.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- The EBITDA figures demonstrate the gross operational profitability excluding non-cash expenses. The data reveals growth from approximately $1.50 billion in 2017 to about $1.88 billion in 2018, followed by a dip to $1.66 billion in 2019. The most significant decline is observed in 2020, with EBITDA turning sharply negative at around $4.73 billion. A substantial rebound occurs in 2021 and 2022, with EBITDA improving to $2.92 billion and further to $3.12 billion respectively, reflecting recovery in cash-based operational earnings.
- Overall Financial Trend Analysis
- The financial data across all measured metrics indicates a generally positive trend with a severe disruption in 2020. The abrupt negative values in 2020 across all key earnings indicators suggest a major adverse event impacting profitability and operational efficiency during that year. Recovery in 2021 and 2022 is evident, with earnings surpassing pre-2020 levels in many cases, signifying a strong rebound in financial performance. The stability in 2022 compared to 2021 suggests that the company has managed to restore its core profitability and operating capabilities following the notable setback.
Enterprise Value to EBITDA Ratio, Current
AmerisourceBergen Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 41,299,807) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,124,874) |
| Valuation Ratio | |
| EV/EBITDA | 13.22 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | 21.84 |
| Elevance Health Inc. | 7.11 |
| Intuitive Surgical Inc. | 57.34 |
| Medtronic PLC | 14.63 |
| UnitedHealth Group Inc. | 11.35 |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | 13.95 |
| EV/EBITDA, Industry | |
| Health Care | 14.62 |
Based on: 10-K (reporting date: 2022-09-30).
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
AmerisourceBergen Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | 36,473,156) | 30,235,610) | 20,514,111) | 18,995,014) | 20,769,340) | 18,335,740) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,124,874) | 2,919,189) | (4,727,296) | 1,660,092) | 1,877,172) | 1,499,260) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 11.67 | 10.36 | — | 11.44 | 11.06 | 12.23 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Abbott Laboratories | 15.85 | 17.42 | 25.99 | — | — | — | |
| Elevance Health Inc. | 10.26 | 10.05 | 7.57 | — | — | — | |
| Intuitive Surgical Inc. | 41.52 | 44.54 | 59.12 | — | — | — | |
| Medtronic PLC | 14.99 | 24.41 | 17.92 | — | — | — | |
| UnitedHealth Group Inc. | 15.11 | 17.39 | 13.39 | — | — | — | |
| EV/EBITDA, Sector | |||||||
| Health Care Equipment & Services | 15.27 | 18.06 | 16.63 | — | — | — | |
| EV/EBITDA, Industry | |||||||
| Health Care | 14.00 | 14.33 | 18.21 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 36,473,156 ÷ 3,124,874 = 11.67
4 Click competitor name to see calculations.
- Enterprise Value (EV) Trend
- The enterprise value exhibited a generally increasing trajectory over the analyzed periods. Beginning at approximately 18.34 billion USD in 2017, EV rose to about 20.77 billion USD in 2018, experienced a slight drop to 18.99 billion USD in 2019, then increased again to around 20.51 billion USD in 2020. A marked growth followed in 2021, reaching over 30.24 billion USD, and continued upward to approximately 36.47 billion USD by 2022. This pattern indicates expanding market valuation with some volatility around 2019 to 2020, succeeded by strong value appreciation.
- EBITDA Performance
- EBITDA fluctuated with substantial variation throughout the periods. From $1.5 billion in 2017, it rose to nearly $1.88 billion in 2018 but declined to around $1.66 billion in 2019. A significant anomaly occurred in 2020 when EBITDA turned negative, posting a loss of about $4.73 billion. This sharp downturn implies considerable operational or extraordinary expenses impacting earnings. The company rebounded in 2021 and 2022 with EBITDA returning to positive territory at approximately $2.92 billion and $3.12 billion respectively, indicating recovery and improved operational efficiency or profitability post-2020.
- EV/EBITDA Ratio Analysis
- The EV/EBITDA ratio demonstrated relative stability from 2017 to 2019, maintaining a range between 11.06 and 12.23. The absence of this ratio in 2020 reflects nonsensical valuation due to negative EBITDA. The metric resumed with a ratio of 10.36 in 2021, highlighting a lower enterprise value per earnings unit compared to earlier years, and slightly increased to 11.67 in 2022. This suggests that valuation multiples normalized following the EBITDA recovery but remained slightly below the highest levels seen in the pre-2020 years.
- Overall Financial Insights
- The data reveals a company that experienced solid growth in market valuation and earnings through 2018, followed by a decline and severe operational losses in 2020. The substantial negative EBITDA in 2020 significantly impacted valuation metrics and presumably reflects extraordinary challenges. However, the subsequent recovery in 2021-2022 with improving EBITDA and rising enterprise value points to a restoration of business fundamentals and investor confidence. The EV/EBITDA ratio’s return toward historical ranges further corroborates this recovery narrative.