Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Illumina Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
| 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. | Illumina Inc. EBITDA increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
Enterprise Value to EBITDA Ratio, Current
Illumina Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 61,504) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,092) |
| Valuation Ratio | |
| EV/EBITDA | 56.32 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AbbVie Inc. | 23.42 |
| Amgen Inc. | 15.31 |
| Bristol-Myers Squibb Co. | 7.21 |
| Danaher Corp. | 25.55 |
| Eli Lilly & Co. | 88.64 |
| Gilead Sciences Inc. | 12.56 |
| Johnson & Johnson | 16.57 |
| Merck & Co. Inc. | 40.95 |
| Moderna Inc. | — |
| Pfizer Inc. | 22.45 |
| Regeneron Pharmaceuticals Inc. | 17.39 |
| Thermo Fisher Scientific Inc. | 21.86 |
| EV/EBITDA, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 26.63 |
| EV/EBITDA, Industry | |
| Health Care | 22.06 |
Based on: 10-K (reporting date: 2020-12-31).
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
Illumina Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 69,822) | 41,239) | 41,525) | 31,596) | 23,847) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,092) | 1,358) | 1,130) | 1,236) | 735) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 63.94 | 30.37 | 36.75 | 25.56 | 32.43 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AbbVie Inc. | 21.34 | 13.68 | — | — | — | |
| Amgen Inc. | 12.24 | 12.26 | — | — | — | |
| Bristol-Myers Squibb Co. | 34.35 | 23.84 | — | — | — | |
| Danaher Corp. | 26.68 | 25.23 | — | — | — | |
| Eli Lilly & Co. | 23.67 | 21.40 | — | — | — | |
| Gilead Sciences Inc. | 24.90 | 11.77 | — | — | — | |
| Johnson & Johnson | 18.20 | 16.28 | — | — | — | |
| Merck & Co. Inc. | 16.05 | 13.66 | — | — | — | |
| Moderna Inc. | — | — | — | — | — | |
| Pfizer Inc. | 15.78 | 9.17 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 12.70 | 14.80 | — | — | — | |
| Thermo Fisher Scientific Inc. | 18.72 | 19.74 | — | — | — | |
| EV/EBITDA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 19.64 | 14.94 | — | — | — | |
| EV/EBITDA, Industry | ||||||
| Health Care | 16.61 | 14.16 | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 69,822 ÷ 1,092 = 63.94
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. | Illumina Inc. EV/EBITDA ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level. |