Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Eli Lilly & Co., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Income
- The net income shows variability over the analyzed periods. Starting at 6,193,700 thousand US dollars in 2020, it decreased to 5,581,700 thousand US dollars in 2021, followed by an increase to 6,244,800 thousand US dollars in 2022. A decline to 5,240,400 thousand US dollars was observed in 2023, succeeded by a significant rise to 10,590,000 thousand US dollars in 2024, marking the highest net income in the period analyzed.
- Earnings Before Tax (EBT)
- The earnings before tax followed a similar pattern to net income, with fluctuations during the years. After decreasing from 7,229,900 thousand US dollars in 2020 to 6,155,500 thousand US dollars in 2021, it rebounded to 6,806,400 thousand US dollars in 2022. It slightly decreased to 6,554,600 thousand US dollars in 2023 but then showed a strong increase to 12,680,400 thousand US dollars in 2024, indicating improved profitability before tax.
- Earnings Before Interest and Tax (EBIT)
- EBIT experienced a downward trend from 7,589,500 thousand US dollars in 2020 to 6,495,300 thousand US dollars in 2021. Thereafter, it increased to 7,138,000 thousand US dollars in 2022 and remained relatively stable at 7,040,500 thousand US dollars in 2023. The year 2024 saw a sharp increase to 13,461,000 thousand US dollars, reflecting enhanced operational earnings capacity in that year.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- The EBITDA values reveal a similar dynamic to EBIT, with a decline from 8,913,400 thousand US dollars in 2020 to 8,042,900 thousand US dollars in 2021. It then increased to 8,660,500 thousand US dollars in 2022, followed by a slight decrease to 8,567,800 thousand US dollars in 2023. A substantial rise occurred in 2024, reaching 15,227,600 thousand US dollars, the highest across the time span, indicating improved earnings from core operations before non-cash expenses.
Enterprise Value to EBITDA Ratio, Current
Eli Lilly & Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 779,627,716) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 15,227,600) |
| Valuation Ratio | |
| EV/EBITDA | 51.20 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AbbVie Inc. | 27.24 |
| Amgen Inc. | 15.70 |
| Bristol-Myers Squibb Co. | 43.43 |
| Danaher Corp. | 22.13 |
| Gilead Sciences Inc. | 35.89 |
| Johnson & Johnson | 15.80 |
| Merck & Co. Inc. | 9.12 |
| Pfizer Inc. | 10.52 |
| Regeneron Pharmaceuticals Inc. | 10.18 |
| Thermo Fisher Scientific Inc. | 16.38 |
| Vertex Pharmaceuticals Inc. | 240.89 |
| EV/EBITDA, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 21.00 |
| EV/EBITDA, Industry | |
| Health Care | 18.85 |
Based on: 10-K (reporting date: 2024-12-31).
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
Eli Lilly & Co., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 852,411,298) | 731,126,566) | 326,866,344) | 240,105,544) | 210,974,169) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 15,227,600) | 8,567,800) | 8,660,500) | 8,042,900) | 8,913,400) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 55.98 | 85.33 | 37.74 | 29.85 | 23.67 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AbbVie Inc. | 26.97 | 20.79 | 13.31 | 13.44 | 21.34 | |
| Amgen Inc. | 15.31 | 14.13 | 12.97 | 13.22 | 12.24 | |
| Bristol-Myers Squibb Co. | 48.23 | 6.51 | 9.46 | 8.65 | 34.35 | |
| Danaher Corp. | 22.34 | 26.41 | 18.42 | 21.05 | 26.68 | |
| Gilead Sciences Inc. | 35.86 | 10.41 | 13.89 | 8.57 | 24.90 | |
| Johnson & Johnson | 15.77 | 16.45 | 14.78 | 14.47 | 18.20 | |
| Merck & Co. Inc. | 9.90 | 51.30 | 13.91 | 12.18 | 16.05 | |
| Pfizer Inc. | 10.60 | 22.50 | 6.12 | 8.64 | 15.78 | |
| Regeneron Pharmaceuticals Inc. | 13.55 | 20.16 | 15.27 | 6.68 | 12.70 | |
| Thermo Fisher Scientific Inc. | 19.89 | 21.83 | 20.25 | 20.21 | 18.72 | |
| Vertex Pharmaceuticals Inc. | 231.93 | 21.57 | 14.91 | 18.92 | 14.81 | |
| EV/EBITDA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 22.07 | 22.59 | 13.58 | 13.16 | 18.90 | |
| EV/EBITDA, Industry | ||||||
| Health Care | 20.34 | 19.28 | 13.93 | 14.07 | 17.33 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 852,411,298 ÷ 15,227,600 = 55.98
4 Click competitor name to see calculations.
The financial data reveals significant changes in both enterprise value and EBITDA over the five-year period analyzed. There is a consistent upward trajectory in the enterprise value, indicating notable growth in the market valuation of the company. The enterprise value more than quadrupled, increasing from approximately 211 billion US dollars at the end of 2020 to approximately 852 billion US dollars by the end of 2024.
EBITDA figures show some fluctuation over time. From 2020 to 2021, EBITDA decreased from about 8.9 billion to 8.0 billion US dollars, but it then rebounded slightly to 8.7 billion in 2022 and remained relatively stable in 2023 at approximately 8.6 billion US dollars. A marked increase occurred in 2024, with EBITDA rising to over 15.2 billion US dollars, representing a significant recovery and growth in operational profitability.
The EV/EBITDA ratio reflects these changes and provides insight into company valuation relative to its earnings. This ratio increased steadily from 23.67 at the end of 2020 to a peak of 85.33 in 2023, indicating that enterprise value grew at a faster pace than EBITDA during this interval, which could suggest heightened market expectations or a premium valuation. In 2024, the ratio decreased to 55.98, which, despite being lower than the previous year, remains considerably higher than at the start of the period. This suggests that the company's valuation remained relatively elevated compared to its earnings, but the sharp rise in EBITDA helped moderate the ratio.
- Enterprise Value (EV)
- Displayed strong and continuous growth, increasing more than fourfold from 2020 to 2024.
- EBITDA
- Experienced initial decline and stabilization between 2020 and 2023, followed by a substantial increase in 2024.
- EV/EBITDA Ratio
- Rose consistently until 2023, reflecting higher market valuation relative to earnings, then declined in 2024 due to improved EBITDA, though still indicative of an elevated valuation.