Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Celgene Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
| 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. | Celgene Corp. EBITDA increased from 2016 to 2017 and from 2017 to 2018. |
Enterprise Value to EBITDA Ratio, Current
Celgene Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 91,115) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 6,208) |
| Valuation Ratio | |
| EV/EBITDA | 14.68 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AbbVie Inc. | 20.75 |
| Amgen Inc. | 13.86 |
| Bristol-Myers Squibb Co. | 7.61 |
| Danaher Corp. | 23.23 |
| Eli Lilly & Co. | 91.71 |
| Gilead Sciences Inc. | 13.03 |
| Johnson & Johnson | 15.88 |
| Merck & Co. Inc. | 40.05 |
| Pfizer Inc. | 22.01 |
| Regeneron Pharmaceuticals Inc. | 14.36 |
| Thermo Fisher Scientific Inc. | 22.16 |
| Vertex Pharmaceuticals Inc. | 22.35 |
Based on: 10-K (reporting date: 2018-12-31).
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
Celgene Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 77,219) | 75,373) | 96,260) | 85,544) | 98,142) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 6,208) | 5,307) | 3,377) | 2,743) | 2,877) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 12.44 | 14.20 | 28.50 | 31.19 | 34.11 | |
| 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. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
3 2018 Calculation
EV/EBITDA = EV ÷ EBITDA
= 77,219 ÷ 6,208 = 12.44
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. | Celgene Corp. EV/EBITDA ratio decreased from 2016 to 2017 and from 2017 to 2018. |