Enterprise Value to EBITDA (EV/EBITDA)
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IQVIA Holdings Inc. pages available for free this week:
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2013
- Current Ratio since 2013
- Total Asset Turnover since 2013
- Price to Book Value (P/BV) since 2013
- Price to Sales (P/S) since 2013
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
IQVIA Holdings Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Net Income Attributable to IQVIA Holdings Inc.
- There is a fluctuating trend observed in net income over the five-year period. The net income decreased from 259 million USD in 2018 to 191 million USD in 2019. It then rebounded to 279 million USD in 2020, followed by a sharp increase to 966 million USD in 2021. The upward trend continued in 2022, reaching 1,091 million USD, indicating substantial growth in profitability in the most recent years.
- Earnings Before Tax (EBT)
- The earnings before tax showed stability between 2018 and 2019, maintaining a level of 343 million USD both years. This was followed by a slight increase to 380 million USD in 2020. A significant rise occurred in 2021 with earnings jumping to 1,134 million USD, and this growth further extended to 1,351 million USD in 2022. The data indicates an overall strong improvement in pre-tax profitability, particularly after 2020.
- Earnings Before Interest and Tax (EBIT)
- EBIT values demonstrate consistent growth throughout the observed years. Starting at 757 million USD in 2018, there was a gradual increase to 790 million USD in 2019 and 796 million USD in 2020. Significant growth appeared in the subsequent years, with EBIT rising sharply to 1,509 million USD in 2021 and further to 1,767 million USD in 2022. This trend suggests enhanced operational efficiency or expansion contributing to higher earnings before interest and tax expenses.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA consistently increased over the five-year period, indicating improving cash profitability. It advanced from 1,898 million USD in 2018 to 1,992 million USD in 2019 and then to 2,083 million USD in 2020. More pronounced growth occurred from 2020 to 2021, with EBITDA reaching 2,773 million USD, and a further increase to 2,897 million USD in 2022. The steady rise reflects positive trends in the company’s earnings capacity before non-cash charges.
Enterprise Value to EBITDA Ratio, Current
IQVIA Holdings Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| 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. | |
| Vertex Pharmaceuticals Inc. | |
| EV/EBITDA, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | |
| EV/EBITDA, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2022-12-31).
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
IQVIA Holdings Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| 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. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| EV/EBITDA, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV) Trends
- The enterprise value showed a consistent upward trajectory from 2018 to 2021, increasing from 38,267 million USD to a peak of 55,061 million USD. However, in 2022, a decline was observed, with EV decreasing slightly to 53,832 million USD, indicating a minor correction following previous growth.
- EBITDA Trends
- Earnings before interest, tax, depreciation, and amortization (EBITDA) displayed steady growth throughout the period examined. Starting at 1,898 million USD in 2018, EBITDA rose each year, reaching 2,897 million USD in 2022. The most significant annual increase was noted between 2020 and 2021, reflecting a substantial improvement in operational earnings.
- EV/EBITDA Ratio Analysis
- The EV/EBITDA ratio fluctuated over the years, beginning at 20.16 in 2018 and rising to a high of 22.99 in 2020. Subsequently, the ratio declined to 19.86 in 2021 and further to 18.58 in 2022. This trend suggests a market valuation relatively more favorable to operational earnings in the later years, potentially reflecting improved earnings performance outpacing enterprise value growth.
- Overall Insights
- The data indicates a period of expanding market valuation and improving operational earnings, with EBITDA growth outstripping enterprise value increases in recent years, as seen in the declining EV/EBITDA ratio. The slight decrease in enterprise value in 2022 alongside continued EBITDA growth may suggest increased investor confidence in the company's earnings strength or a revaluation of the firm’s capital structure.