Stock Analysis on Net

Gilead Sciences Inc. (NASDAQ:GILD)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

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

Gilead Sciences Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income attributable to Gilead 480 5,665 4,592 6,225 123
Add: Net income attributable to noncontrolling interest (52) (26) (24) (34)
Add: Income tax expense 210 1,246 1,248 2,077 1,580
Earnings before tax (EBT) 690 6,859 5,814 8,278 1,669
Add: Interest expense 977 944 935 1,001 984
Earnings before interest and tax (EBIT) 1,667 7,803 6,749 9,279 2,653
Add: Depreciation expense 381 354 323 329 288
Add: Amortization expense 2,386 2,339 1,780 1,721 1,192
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,434 10,496 8,852 11,329 4,133

Based on: 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), 10-K (reporting date: 2020-12-31).

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. Gilead Sciences Inc. EBITDA increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Enterprise Value to EBITDA Ratio, Current

Gilead Sciences Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 155,978
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,434
Valuation Ratio
EV/EBITDA 35.18
Benchmarks
EV/EBITDA, Competitors1
AbbVie Inc. 28.43
Amgen Inc. 15.90
Bristol-Myers Squibb Co. 50.44
Danaher Corp. 22.07
Eli Lilly & Co. 52.94
Johnson & Johnson 15.58
Merck & Co. Inc. 9.42
Pfizer Inc. 10.16
Regeneron Pharmaceuticals Inc. 11.67
Thermo Fisher Scientific Inc. 18.29
Vertex Pharmaceuticals Inc. 242.97
EV/EBITDA, Sector
Pharmaceuticals, Biotechnology & Life Sciences 21.64
EV/EBITDA, Industry
Health Care 19.93

Based on: 10-K (reporting date: 2024-12-31).

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

Gilead Sciences Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 158,992 109,266 122,947 97,096 102,914
Earnings before interest, tax, depreciation and amortization (EBITDA)2 4,434 10,496 8,852 11,329 4,133
Valuation Ratio
EV/EBITDA3 35.86 10.41 13.89 8.57 24.90
Benchmarks
EV/EBITDA, Competitors4
AbbVie Inc. 26.97 20.79 13.31 13.44 21.34
Amgen Inc. 15.31 14.13 12.97 13.22 12.24
Bristol-Myers Squibb Co. 48.23 6.51 9.46 8.65 34.35
Danaher Corp. 22.34 26.41 18.42 21.05 26.68
Eli Lilly & Co. 55.98 85.33 37.74 29.85 23.67
Johnson & Johnson 15.77 16.45 14.78 14.47 18.20
Merck & Co. Inc. 9.90 51.30 13.91 12.18 16.05
Pfizer Inc. 10.60 22.50 6.12 8.64 15.78
Regeneron Pharmaceuticals Inc. 13.55 20.16 15.27 6.68 12.70
Thermo Fisher Scientific Inc. 19.89 21.83 20.25 20.21 18.72
Vertex Pharmaceuticals Inc. 231.93 21.57 14.91 18.92 14.81
EV/EBITDA, Sector
Pharmaceuticals, Biotechnology & Life Sciences 22.07 22.59 13.58 13.16 18.90
EV/EBITDA, Industry
Health Care 19.95 18.98 13.71 13.87 16.50

Based on: 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), 10-K (reporting date: 2020-12-31).

1 See details »

2 See details »

3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 158,992 ÷ 4,434 = 35.86

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. Gilead Sciences Inc. EV/EBITDA ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.