Enterprise Value to EBITDA (EV/EBITDA)
Paying user area
Try for free
Abiomed Inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Abiomed Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Abiomed Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
- Net Income
- Net income displayed a strong upward trend from 2017 to 2019, increasing significantly from 52,116 thousand US dollars in 2017 to 259,016 thousand US dollars in 2019. Following this peak, there was a decline in 2020 to 203,009 thousand US dollars. The figure recovered somewhat in 2021, reaching 225,525 thousand US dollars, but then declined again in 2022 to 136,505 thousand US dollars, indicating some volatility and challenges in the most recent years.
- Earnings Before Tax (EBT) and Earnings Before Interest and Tax (EBIT)
- The EBT and EBIT figures followed an identical trend throughout the period, reflecting that interest expenses were negligible or non-existent. Both metrics rose sharply from 91,343 thousand US dollars in 2017 to 263,360 thousand US dollars in 2019. Post-2019, there was a decrease to approximately 256,825 thousand US dollars in 2020. A rebound occurred in 2021, with earnings reaching the highest point at 288,220 thousand US dollars, before a subsequent decline to 190,560 thousand US dollars in 2022. This pattern implies fluctuating operational profitability amid changing business conditions.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed consistent growth from 2017 through 2019, moving up from 97,899 thousand US dollars to a peak of 277,481 thousand US dollars. The metric remained largely stable between 2019 and 2020, showing minimal decline. EBITDA then increased to a maximum of 312,317 thousand US dollars in 2021, marking the highest level within the observed period. However, a notable decline followed in 2022, with EBITDA dropping to 218,649 thousand US dollars. The overall pattern demonstrates a strong underlying earnings capacity with some recent downward pressure.
- Overall Observations
- The financial results reveal substantial growth in profitability metrics up to 2019, followed by marked volatility from 2020 onwards. Although there was some recovery in 2021 across most profitability measures, the decline in 2022 suggests emerging operational or market challenges. The close alignment between EBT and EBIT figures indicates limited financial leverage, while the significant fluctuations in net income and EBITDA underscore sensitivity to external or internal factors influencing earnings quality and scale.
Enterprise Value to EBITDA Ratio, Current
Abiomed Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | |
| CVS Health Corp. | |
| Elevance Health Inc. | |
| Intuitive Surgical Inc. | |
| Medtronic PLC | |
| UnitedHealth Group Inc. | |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | |
| EV/EBITDA, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2022-03-31).
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
Abiomed Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | |||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | |||||||
| Valuation Ratio | |||||||
| EV/EBITDA3 | |||||||
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Abbott Laboratories | |||||||
| CVS Health Corp. | |||||||
| Elevance Health Inc. | |||||||
| Intuitive Surgical Inc. | |||||||
| Medtronic PLC | |||||||
| UnitedHealth Group Inc. | |||||||
| EV/EBITDA, Sector | |||||||
| Health Care Equipment & Services | |||||||
| EV/EBITDA, Industry | |||||||
| Health Care | |||||||
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited significant volatility over the analyzed periods. It increased sharply from approximately 5.74 billion USD in 2017 to a peak of about 17.18 billion USD in 2018. This was followed by a notable decline to around 8.38 billion USD by 2020. Subsequently, EV rebounded to nearly 12.10 billion USD in 2021 before decreasing again to approximately 10.00 billion USD in 2022. The fluctuations suggest considerable market valuation shifts during this timeframe.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA showed a generally upward trend from 2017 through 2021, rising from nearly 97 million USD in 2017 to over 312 million USD in 2021. However, in 2022, EBITDA decreased substantially to about 219 million USD, representing a noteworthy downturn after several years of growth. This indicates potential challenges or changes in operational performance or profitability in the most recent period.
- EV/EBITDA Ratio
- The EV/EBITDA ratio demonstrated pronounced fluctuations, reflecting the interplay between market valuation and earnings performance. It peaked at roughly 100.05 in 2018, coinciding with the highest enterprise value and a relatively lower EBITDA level compared to subsequent years. The ratio then declined steadily to its lowest point of about 30.24 in 2020, indicating improved valuation relative to earnings. After 2020, the ratio rose again to 38.74 in 2021 and further to 45.66 in 2022, suggesting a modest increase in valuation multiples or a proportionally larger decrease in earnings compared to enterprise value.
- Overall Insights
- The data reveals a pattern of substantial volatility in both market valuation and earnings over the six-year period. The peak EV in 2018, contrasted with a relatively low EBITDA, resulted in a very high EV/EBITDA multiple, indicating possibly overvalued conditions or investor expectations not supported by earnings. The subsequent decline in EV coupled with growth in EBITDA lowered the ratio, potentially reflecting a more balanced valuation. The drop in EBITDA in 2022, despite a moderate EV, caused a rise in the EV/EBITDA multiple, highlighting renewed concerns or shifts in financial performance. The ratio movements emphasize sensitivity to both market perceptions and operational profitability changes over time.