Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Pfizer Inc. (NYSE:PFE)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Pfizer Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to Pfizer Inc. 16,273  11,153  21,308  7,215  6,960 
Add: Net income attributable to noncontrolling interest 29  35  47  31  26 
Less: Discontinued operations, net of tax 17  11 
Add: Income tax expense 1,384  706  (9,048) 1,122  1,990 
Earnings before tax (EBT) 17,682  11,885  12,305  8,351  8,965 
Add: Interest expense 1,574  1,316  1,270  1,186  1,199 
Earnings before interest and tax (EBIT) 19,256  13,201  13,575  9,537  10,164 
Add: Depreciation and amortization 6,010  6,384  6,269  5,757  5,157 
Earnings before interest, tax, depreciation and amortization (EBITDA) 25,266  19,585  19,844  15,294  15,321 

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29).

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. Pfizer Inc.’s EBITDA decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Enterprise Value to EBITDA Ratio, Current

Pfizer Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 252,691 
Earnings before interest, tax, depreciation and amortization (EBITDA) 25,266 
Valuation Ratio
EV/EBITDA 10.00
Benchmarks
EV/EBITDA, Competitors1
Abbott Laboratories 26.48
AbbVie Inc. 14.36
Amgen Inc. 12.36
Biogen Inc. 5.56
Bristol-Myers Squibb Co. 22.83
Eli Lilly & Co. 21.68
Gilead Sciences Inc. 10.09
Illumina Inc. 32.87
Johnson & Johnson 15.75
Merck & Co. Inc. 13.43
Regeneron Pharmaceuticals Inc. 22.30
Vertex Pharmaceuticals Inc. 34.73
Zoetis Inc. 33.06
EV/EBITDA, Sector
Pharmaceuticals & Biotechnology 15.19
EV/EBITDA, Industry
Health Care 17.17

Based on: 10-K (filing date: 2020-02-27).

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

Pfizer Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 231,815  263,948  236,623  227,277  199,475 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 25,266  19,585  19,844  15,294  15,321 
Valuation Ratio
EV/EBITDA3 9.17 13.48 11.92 14.86 13.02
Benchmarks
EV/EBITDA, Competitors4
Abbott Laboratories 21.70 21.41 20.08 25.22 12.40
AbbVie Inc. 13.68 17.98 20.80 12.73 13.50
Amgen Inc. 12.26 9.49 9.37 9.60 9.91
Biogen Inc. 7.60 9.55 11.68 9.99 11.42
Bristol-Myers Squibb Co. 23.84 11.97 17.25 14.26 39.09
Eli Lilly & Co. 21.40 23.29 22.72 18.40 19.15
Gilead Sciences Inc. 11.77 7.83 7.11 5.57 5.56
Illumina Inc. 30.37 36.75 25.56 32.43 30.36
Johnson & Johnson 16.28 14.42 15.04 13.07 11.54
Merck & Co. Inc. 13.66 16.05 13.74 17.75 12.35
Regeneron Pharmaceuticals Inc. 14.80 15.50 15.13 26.10 28.77
Vertex Pharmaceuticals Inc. 37.82 60.10 342.33 276.52
Zoetis Inc. 30.11 20.74 21.37 18.19 28.57
EV/EBITDA, Sector
Pharmaceuticals & Biotechnology 14.88 14.63 14.23 13.10 12.22
EV/EBITDA, Industry
Health Care 16.10 15.58 15.09 13.79 13.08

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 231,815 ÷ 25,266 = 9.17

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. Pfizer Inc.’s EV/EBITDA ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.