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GuruFocus has detected 6 Warning Signs with Allergan PLC $AGN.
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Allergan PLC (NYSE:AGN)
EV-to-EBITDA
20.80 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Allergan PLC's enterprise value is $106,316 Mil. Allergan PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $5,113 Mil. Therefore, Allergan PLC's EV/EBITDA ratio for today is 20.80.

AGN' s EV-to-EBITDA Range Over the Past 10 Years
Min: -224.1   Max: 234.9
Current: 20.8

-224.1
234.9

During the past 13 years, the highest EV/EBITDA Ratio of Allergan PLC was 234.90. The lowest was -224.10. And the median was 12.10.

AGN's EV-to-EBITDA is ranked lower than
64% of the 797 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 15.26 vs. AGN: 20.80 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Allergan PLC's stock price is $243.86. Allergan PLC's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $38.35. Therefore, Allergan PLC's P/E Ratio for today is 6.36.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Allergan PLC's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=106316.122/5112.5
=20.80

Allergan PLC's current Enterprise Value is $106,316 Mil.
Allergan PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 1484 (Mar. 2016 ) + 1335.3 (Jun. 2016 ) + 1435.1 (Sep. 2016 ) + 858.1 (Dec. 2016 ) = $5,113 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Allergan PLC's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=243.86/38.35
=6.36

Allergan PLC's share price for today is $243.86.
Allergan PLC's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.47 (Mar. 2016 ) + -1.44 (Jun. 2016 ) + 38.58 (Sep. 2016 ) + 0.74 (Dec. 2016 ) = $38.35.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Allergan PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 6.715.6310.4711.718.7218.2957.41102.0350.0120.19

Allergan PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 55.97102.03276.83111.3272.4850.0134.2332.1718.4620.19
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