United States: EV/EBITDA health and pharmaceuticals 2023 | Statista (2024)

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Average EV/EBITDA multiples in the health and pharmaceuticals sector in the United States from 2019 to 2023, by industry Other statistics that may interest you Other statistics that may interest you Statistics on Statistics Topics FAQs

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    Published by Statista Research Department, Jun 19, 2023

    In the United States, the average value of enterprise value to earnings before interest, tax, depreciation and amortization (EV/EBITDA) in the health and pharmaceuticals sector as of 2023 was a multiple of approximately 13.7x. Companies operating in the healthcare (information & technology) industries saw the highest valuation multiple with EV/EBITDA ratio of 19.3x in 2023, down from 25.6x in 2022.

    Average EV/EBITDA multiples in the health and pharmaceuticals sector in the United States from 2019 to 2023, by industry

    Characteristic20192020202120222023
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    Release date

    January 2023

    More information

    Region

    United States

    Survey time period

    2019 to 2023

    Supplementary notes

    Values are as of January each year.
    A total of 1,236 companies were included in the calculation for 2023, 1,427 for 2022, 1,399 for 2021, 1,305 for 2020 and 1,230 for 2019.

    Enterprise value = Market value of equity + Market value of debt - Cash.
    EBITDA = Estimated by adding depreciation and amortization back to operating income (EBIT).
    Only positive EBITDA companies.

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    United States: EV/EBITDA health and pharmaceuticals 2023 | Statista (2024)

    FAQs

    United States: EV/EBITDA health and pharmaceuticals 2023 | Statista? ›

    In the United States, the average value of enterprise value to earnings before interest, tax, depreciation and amortization (EV/EBITDA) in the health and pharmaceuticals sector as of 2023 was a multiple of approximately 13.7x.

    Get More Info Here ›
    What is the average EBITDA in the pharmaceutical industry? ›

    For pharmaceutical companies, the median gross profit margin was 76.5% (95% CI, 70.3%-82.7%), the median EBITDA margin was 29.4% (95% CI, 26.3%-32.5%), and the median net income margin was 13.8% (95% CI, 10.2%-17.4%).

    Explore More ›
    What is a healthy EV EBITDA ratio? ›

    A healthy EV/EBITDA ratio for a company is less than 10. It can also indicate that a stock may be undervalued. The average EV/EBITDA ratio for the S&P 500 as of January 2020 is 14.20.

    Show Me More ›
    What is a good EBITDA in healthcare? ›

    In order to make this calculation correctly, it is wise to consult with a healthcare practice valuation expert. However, know that an EBITDA margin of 10% or more is considered good.

    Learn More ›
    What is the EBITDA multiple for the pharmaceutical industry? ›

    EBITDA multiples are financial ratios used to value a pharmaceutical company based on its EBITDA. The most common EBITDA multiples applied are EV/EBITDA (enterprise value divided by EBITDA) and P/EBITDA (share price divided by EBITDA). EV/EBITDA is the most commonly used multiple for valuation.

    Discover More Details ›
    What is the average EV EBITDA in the healthcare industry? ›

    In the United States, the average value of enterprise value to earnings before interest, tax, depreciation and amortization (EV/EBITDA) in the health and pharmaceuticals sector as of 2023 was a multiple of approximately 13.7x.

    Discover More Details ›
    What is the EBITDA margin for pharma industry? ›

    Generic companies' EBITDA margins usually range between 10% and 25% in mature markets. This contrasts with EBITDA margins for speciality pharma companies, which can be as high as 45%. The generic market is changing, however, as the first biological drugs have lost their exclusivity.

    See More ›
    What is Pfizer's EV EBITDA ratio? ›

    Pfizer (Pfizer) EV-to-EBITDA : 29.49 (As of May. 20, 2024)

    Learn More ›
    What is the EV EBITDA ratio of Apple? ›

    Apple (AAPL) EV-to-EBITDA : 22.47 (As of May. 29, 2024)

    Read On ›
    What is considered a strong EBITDA? ›

    An EBITDA over 10 is considered good.

    Find Out More ›

    What is the EBITDA multiple of healthcare companies? ›

    The current average last 12 months (LTM) revenue and LTM EBITDA multiples for the Healthcare industry overall are 1.8x and 11.5x, respectively.

    Explore More ›
    What is the average EBITDA for a medical practice? ›

    EBITDA Multiples for Private Healthcare Companies, 2024
    SubsectorEBITDA Range
    Hospitals6.1x9.9x
    Medical Device6.5x10.4x
    Medical Practices5.8x8.9x
    6 more rows
    Feb 1, 2024

    Get More Info ›
    What is a good profit margin for healthcare? ›

    Operating margins are now in the 1% to 2% range, representing a “pain point” for the sector amid higher costs, including salary and wage expenses, according to Kevin Holloran, senior director at Fitch. Typically, hospitals need margins of at least 3% to be able to meet their obligations.

    Discover More Details ›
    What is the EBITDA multiple for a pharmacy? ›

    EBITDA Multiple for a Pharmacy

    The EBITDA multiple measures the value of a pharmacy based on its earnings before interest, taxes, depreciation, and amortization. This helps a pharmacy understand the return on investment it can expect to generate.

    Find Out More ›
    What is a healthy EBITDA multiple? ›

    EV calculates a company's total value or assessed worth, while EBITDA measures a company's overall financial performance and profitability. Typically, when evaluating a company, an EV/EBITDA value below 10 is seen as healthy.

    Continue Reading ›
    What is the difference between EBITDA and EBITDA multiple? ›

    The EBITDA multiple is a financial ratio that compares a company's Enterprise Value to its annual EBITDA (which can be either a historical figure or a forecast/estimate). This multiple is used to determine the value of a company and compare it to the value of other, similar businesses.

    Continue Reading ›
    What is a good EBITDA percentage by industry? ›

    Industry Averages EBITDA Margin
    IndustryAverage EBITDA marginNumber of companies
    Business Equipment & Supplies8.3%7
    Capital Markets21.3%33
    Chemicals15.4%17
    Communication Equipment2.2%51
    127 more rows

    Explore More ›
    What is Pfizer's EBITDA margin? ›

    Analysis
    • Pfizer's latest twelve months ebitda margin is 17.5%
    • Pfizer's ebitda margin for fiscal years ending December 2019 to 2023 averaged 34.3%.
    • Pfizer's operated at median ebitda margin of 34.7% from fiscal years ending December 2019 to 2023.
    More items...

    Get More Info Here ›
    What is the average profit margin in the pharmaceutical industry? ›

    A Stockiest margin is approximately 6 to 10% for branded medicines and 8 to 15% for generic medicines. If it is a Carrying and Forwarding Agent, then the profit margin is approximately 4 to 8 percent. These are various pharma business models and their profit margins.

    Learn More Now ›
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