Stock Analysis on Net
Stock Analysis on Net

Eli Lilly & Co. (NYSE:LLY)

Enterprise Value to EBITDA (EV/EBITDA)

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

Eli Lilly & Co., EBITDA calculation

US$ in thousands

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income (loss) 6,193,700  8,318,400  3,232,000  (204,100) 2,737,600 
Less: Net income from discontinued operations —  3,680,500  —  —  — 
Add: Income tax expense 1,036,200  628,000  563,700  2,401,500  636,400 
Earnings before tax (EBT) 7,229,900  5,265,900  3,795,700  2,197,400  3,374,000 
Add: Interest expense 359,600  400,600  272,100  225,000  185,200 
Earnings before interest and tax (EBIT) 7,589,500  5,666,500  4,067,800  2,422,400  3,559,200 
Add: Depreciation and amortization 1,323,900  1,232,600  1,609,000  1,567,300  1,496,600 
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,913,400  6,899,100  5,676,800  3,989,700  5,055,800 

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21).

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. Eli Lilly & Co.’s EBITDA increased from 2018 to 2019 and from 2019 to 2020.

Enterprise Value to EBITDA Ratio, Current

Eli Lilly & Co., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in thousands)
Enterprise value (EV) 246,264,193 
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,913,400 
Valuation Ratio
EV/EBITDA 27.63
Benchmarks
EV/EBITDA, Competitors1
AbbVie Inc. 21.95
Amgen Inc. 10.86
Gilead Sciences Inc. 26.21
Illumina Inc. 52.87
Johnson & Johnson 18.43
Merck & Co. Inc. 17.30
Moderna Inc. —
Pfizer Inc. 19.66
Regeneron Pharmaceuticals Inc. 14.70
Thermo Fisher Scientific Inc. 24.96
Zoetis Inc. 38.39
EV/EBITDA, Sector
Pharmaceuticals, Biotechnology & Life Sciences 21.65
EV/EBITDA, Industry
Health Care 20.83

Based on: 10-K (filing date: 2021-02-17).

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

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 210,974,169  147,658,206  132,220,569  90,652,292  93,004,803 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 8,913,400  6,899,100  5,676,800  3,989,700  5,055,800 
Valuation Ratio
EV/EBITDA3 23.67 21.40 23.29 22.72 18.40
Benchmarks
EV/EBITDA, Competitors4
AbbVie Inc. 21.34 13.68 17.98 20.80 12.73
Amgen Inc. 12.24 12.26 9.49 9.37 9.60
Gilead Sciences Inc. 24.90 11.77 7.83 7.11 5.57
Illumina Inc. 63.94 30.37 36.75 25.56 32.43
Johnson & Johnson 18.20 16.28 14.42 15.04 13.07
Merck & Co. Inc. 16.05 13.66 16.05 13.74 17.75
Moderna Inc. — — — — —
Pfizer Inc. 15.78 9.17 13.48 11.92 14.86
Regeneron Pharmaceuticals Inc. 12.70 14.80 15.50 15.13 26.10
Thermo Fisher Scientific Inc. 18.73 19.74 19.41 20.47 18.21
Zoetis Inc. 30.97 30.11 20.74 21.37 18.19
EV/EBITDA, Sector
Pharmaceuticals, Biotechnology & Life Sciences 19.26 14.48 14.75 13.83 12.85
EV/EBITDA, Industry
Health Care 17.97 14.90 15.07 13.88 12.65

Based on: 10-K (filing date: 2021-02-17), 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 210,974,169 ÷ 8,913,400 = 23.67

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. Eli Lilly & Co.’s EV/EBITDA ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.