Enterprise Value to EBITDA (EV/EBITDA)
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Zoetis Inc., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2019-12-31).
- Net Income
- The net income attributable to Zoetis Inc. shows a consistent upward trend over the five-year period. Starting from $1,500 million in 2019, it increased each year, reaching $2,344 million by 2023. This represents a compound growth reflecting improving profitability and operational efficiency.
- Earnings Before Tax (EBT)
- EBT also demonstrates a steady increase from $1,801 million in 2019 to $2,936 million in 2023. The growth rate closely follows that of net income, suggesting relatively stable tax impacts and effective control over pre-tax earnings.
- Earnings Before Interest and Tax (EBIT)
- EBIT rose consistently from $2,024 million in 2019 to $3,175 million in 2023. This steady increase indicates improving core business profitability before financing and tax considerations, aligned with overall earnings growth.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA values increased from $2,436 million in 2019 to $3,666 million in 2023. The growth signifies an expanding operating cash flow capacity and potentially improving operational margins, as non-cash expenses such as depreciation and amortization are excluded.
- Overall Trends
- All key profitability metrics showed sustained growth across the five-year horizon. The parallel upward trends in net income, EBT, EBIT, and EBITDA point towards consistent operational improvement, stable tax and interest burdens, and an expanding earnings base. This financial profile indicates strengthening business performance over the period analyzed.
Enterprise Value to EBITDA Ratio, Current
Zoetis Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ 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: 2023-12-31).
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
Zoetis Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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: 2023-12-31), 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).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited an overall upward trend from 2019 through 2023, rising from approximately $73.4 billion to $88.5 billion. This growth was consistent until 2021, where it peaked at about $96.4 billion before experiencing a decline in 2022 to roughly $83.9 billion, followed by a moderate recovery in 2023.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed steady growth across the entire period, increasing from $2.4 billion in 2019 to $3.7 billion in 2023. The year-over-year increments suggest consistent operational improvements and enhanced profitability, with the most significant annual increase observed between 2020 and 2021.
- EV/EBITDA Ratio
- The EV/EBITDA ratio demonstrated a decreasing trend from 2019 to 2023. Starting at around 30.11 in 2019, it remained above 30 through 2021 but dropped significantly to 25.13 in 2022 and further declined to 24.15 in 2023. This reduction indicates a relative increase in EBITDA compared to the enterprise value, suggesting improving valuation multiples and potentially more attractive earnings relative to the company’s market valuation.
- Summary of Trends
- While the enterprise value experienced some volatility, reaching its highest point in 2021 before dropping and partially recovering, EBITDA consistently increased each year. The declining EV/EBITDA ratio reflects improved operational earnings relative to the company’s valuation, which may imply enhanced operational efficiency or market reassessment of the company’s valuation multiples over time.