Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Pfizer Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
The financial performance indicators demonstrate significant fluctuations over the five-year period. A notable shift in profitability is observed, particularly when examining the progression of net income and related earnings metrics.
- Overall Earnings Trend
- Earnings before interest, tax, depreciation, and amortization (EBITDA) exhibited a substantial increase from 2021 to 2022, rising from US$30,793 million to US$41,031 million. However, a marked decline occurred in 2023, with EBITDA falling to US$9,557 million. A recovery is then seen in 2024 and 2025, reaching US$18,127 million and US$16,783 million respectively, though not returning to the levels observed in 2022.
- Relationship between Net Income and EBITDA
- The correlation between net income attributable to Pfizer Inc. common shareholders and EBITDA is strong in 2021 and 2022, with both metrics increasing concurrently. The dramatic decrease in net income in 2023 is mirrored in the EBITDA figure. While both metrics show improvement in 2024 and 2025, the magnitude of the increase is considerably less pronounced than the initial decline.
- EBIT and EBT Progression
- Earnings before interest and tax (EBIT) and earnings before tax (EBT) follow a similar pattern to EBITDA, increasing from 2021 to 2022 and then experiencing a significant reduction in 2023. The subsequent years show a recovery, but the 2022 peak is not surpassed. The difference between EBIT and EBT remains relatively consistent throughout the period, suggesting stable interest expense.
- Magnitude of Decline
- The percentage decrease in EBITDA from 2022 to 2023 is substantial, representing a decline of approximately 76.8%. This is a more significant drop than the decrease observed in net income over the same period. The recovery from 2023 to 2024 is considerable, but the 2025 value indicates a slight decrease from the 2024 level.
In summary, the period is characterized by a peak in earnings in 2022, followed by a substantial downturn in 2023, and a partial recovery in 2024 and 2025. The EBITDA metric highlights the volatility in operational profitability during this timeframe.
AI Ask an analyst for more
Enterprise Value to EBITDA Ratio, Current
Pfizer Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 204,857) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 16,783) |
| Valuation Ratio | |
| EV/EBITDA | 12.21 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AbbVie Inc. | 24.10 |
| Amgen Inc. | 13.79 |
| Bristol-Myers Squibb Co. | 9.95 |
| Danaher Corp. | 21.27 |
| Eli Lilly & Co. | 31.11 |
| Gilead Sciences Inc. | 13.81 |
| Johnson & Johnson | 14.49 |
| Merck & Co. Inc. | 11.22 |
| Regeneron Pharmaceuticals Inc. | 12.30 |
| Thermo Fisher Scientific Inc. | 17.92 |
| Vertex Pharmaceuticals Inc. | 22.37 |
| EV/EBITDA, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 17.08 |
| EV/EBITDA, Industry | |
| Health Care | 16.55 |
Based on: 10-K (reporting date: 2025-12-31).
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
Pfizer Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 205,596) | 192,086) | 215,041) | 251,039) | 266,077) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 16,783) | 18,127) | 9,557) | 41,031) | 30,793) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 12.25 | 10.60 | 22.50 | 6.12 | 8.64 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AbbVie Inc. | 26.08 | 26.97 | 20.79 | 13.31 | 13.44 | |
| Amgen Inc. | 14.47 | 15.31 | 14.13 | 12.97 | 13.22 | |
| Bristol-Myers Squibb Co. | 10.28 | 48.23 | 6.51 | 9.46 | 8.65 | |
| Danaher Corp. | 23.29 | 22.34 | 26.41 | 18.42 | 21.05 | |
| Eli Lilly & Co. | 35.45 | 55.99 | 85.35 | 37.76 | 29.86 | |
| Gilead Sciences Inc. | 14.76 | 35.86 | 10.41 | 13.89 | 8.57 | |
| Johnson & Johnson | 14.82 | 15.77 | 16.45 | 14.78 | 14.47 | |
| Merck & Co. Inc. | 12.07 | 9.90 | 51.30 | 13.91 | 12.18 | |
| Regeneron Pharmaceuticals Inc. | 13.07 | 13.55 | 20.16 | 15.27 | 6.68 | |
| Thermo Fisher Scientific Inc. | 19.40 | 19.89 | 21.83 | 20.25 | 20.21 | |
| Vertex Pharmaceuticals Inc. | 24.32 | 231.93 | 21.57 | 14.91 | 18.92 | |
| EV/EBITDA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 18.39 | 22.07 | 22.59 | 13.58 | 13.16 | |
| EV/EBITDA, Industry | ||||||
| Health Care | 17.72 | 21.03 | 20.27 | 14.00 | 14.33 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 205,596 ÷ 16,783 = 12.25
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibits considerable fluctuation over the five-year period. Initial values indicate a relatively high multiple, followed by a significant decrease, then a substantial increase, and finally a moderation. This suggests evolving market perceptions of the company’s value relative to its operating performance.
- Enterprise Value
- Enterprise Value decreased from US$266,077 million in 2021 to US$215,041 million in 2023, representing a decline of approximately 19.2%. A modest recovery to US$205,596 million is observed by 2025. This suggests potential shifts in the company’s capital structure, market capitalization, and net debt.
- EBITDA
- EBITDA increased substantially from US$30,793 million in 2021 to US$41,031 million in 2022, a growth of approximately 33.4%. However, a dramatic decrease to US$9,557 million occurred in 2023. Subsequent years show recovery, reaching US$18,127 million in 2024 and US$16,783 million in 2025, though not returning to 2022 levels. This volatility in EBITDA likely reflects changes in core operating profitability.
- EV/EBITDA Ratio
- The EV/EBITDA ratio began at 8.64 in 2021, then decreased to 6.12 in 2022, coinciding with the increase in EBITDA. A sharp increase to 22.50 is noted in 2023, driven by the significant decline in EBITDA. The ratio then decreased to 10.60 in 2024 and 12.25 in 2025. The 2023 peak suggests a substantial re-evaluation of the company’s value relative to its earnings potential at that time. The subsequent moderation indicates a partial correction as EBITDA recovered.
The observed fluctuations in the EV/EBITDA ratio warrant further investigation into the underlying drivers of both Enterprise Value and EBITDA. The significant drop in EBITDA in 2023 appears to be the primary catalyst for the ratio’s volatility, and understanding the reasons behind this decline is crucial for assessing the company’s financial health and future prospects.
AI Ask an analyst for more