Enterprise Value to EBITDA (EV/EBITDA)
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Merck & Co. Inc. pages available for free this week:
- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Merck & Co. Inc., EBITDA calculation
US$ in millions
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).
The financial data reveals significant fluctuations in key profitability measures over the reported periods. A detailed examination of the earnings metrics indicates various growth trends with notable anomalies.
- Net Income Attributable
- Net income shows a general upward trend from 7,067 million USD in 2020 to 17,117 million USD in 2024. The only exception in this pattern occurs in 2023, where net income sharply declines to 365 million USD, representing a substantial anomaly compared to other years.
- Earnings Before Tax (EBT)
- EBT follows an increasing trajectory from 8,791 million USD in 2020 to 19,936 million USD in 2024, reflecting consistent growth. Similar to net income, there is a marked drop in 2023 to 1,889 million USD, which interrupts the otherwise positive trend.
- Earnings Before Interest and Tax (EBIT)
- EBIT trends upward from 9,622 million USD in 2020 to 21,207 million USD in 2024, displaying steady growth. The year 2023 again exhibits a significant decline to 3,035 million USD, diverging sharply from prior and subsequent years.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA shows a notable rise from 13,247 million USD in 2020 to 25,706 million USD in 2024. Nevertheless, 2023 stands out with a marked decrease to 6,907 million USD, breaking the otherwise ascending pattern.
Overall, the data demonstrates a strong growth trend in all earnings indicators except for the year ending 2023, which is characterized by a pronounced and temporary decline across all measures. This anomaly may warrant further investigation to identify underlying causes. Excluding 2023, the earnings trends suggest healthy operational and financial performance with consistent expansion over the examined period.
Enterprise Value to EBITDA Ratio, Current
Merck & Co. 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 | |
| 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: 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
Merck & Co. Inc., 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 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 | ||||||
| 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: 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
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value showed an overall increasing trend from 2020 to 2023, rising from approximately $212.6 billion to $354.3 billion. However, in 2024, there was a significant decrease to about $254.4 billion. This suggests a sharp decline in market valuation or changes in the company's debt or cash structure in the final year observed.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA increased steadily from 2020 through 2022, moving from $13.2 billion to $21.3 billion. In 2023, there was a notable drop to roughly $6.9 billion, followed by a strong recovery in 2024 to $25.7 billion, the highest value in the five-year span. The sharp dip in 2023 may indicate operational challenges or extraordinary expenses impacting earnings that year, with a considerable rebound the following year.
- EV/EBITDA Ratio
- The EV/EBITDA ratio exhibited variability aligned with movements in both EV and EBITDA. Initially, it declined from 16.05 in 2020 to 12.18 in 2021, then slightly increased to 13.91 in 2022. In 2023, the ratio spiked dramatically to 51.3, driven by the pronounced decrease in EBITDA against a high EV, signaling potential overvaluation or distressed earnings performance for that period. In 2024, the ratio normalized to 9.9, reflecting the combined effect of reduced EV and strong EBITDA, indicating improved valuation relative to earnings.