Zai Lab Ltd
HKEX:9688
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its Industry Average (36.8), the stock would be worth HK$-70.4 (501% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | -9.2 | HK$17.56 |
0%
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| Industry Average | 36.8 | HK$-70.4 |
-501%
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| Country Average | 28.9 | HK$-55.3 |
-415%
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Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
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HK$13.7B
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/ |
Jan 2026
$-217.1m
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= |
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HK$13.7B
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/ |
Dec 2026
$-217.3m
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= |
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HK$13.7B
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/ |
Dec 2027
$-146.3m
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= |
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HK$13.7B
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/ |
Dec 2028
$-79.2m
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= |
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HK$13.7B
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/ |
Dec 2029
$71.6m
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= |
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HK$13.7B
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/ |
Dec 2030
$214.1m
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= |
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HK$13.7B
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/ |
Dec 2031
$401.6m
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= |
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HK$13.7B
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/ |
Dec 2032
$534.3m
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= |
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HK$13.7B
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/ |
Dec 2033
$626.3m
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= |
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Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| CN |
|
Zai Lab Ltd
HKEX:9688
|
19.1B HKD | -9.2 | -14.1 | |
| FR |
|
Pharnext SCA
OTC:PNEXF
|
6T USD | -192 227.3 | -160 127.7 | |
| US |
|
Abbvie Inc
NYSE:ABBV
|
351.3B USD | 19.5 | 83.9 | |
| US |
|
Amgen Inc
NASDAQ:AMGN
|
185.7B USD | 14 | 24.1 | |
| US |
|
Gilead Sciences Inc
NASDAQ:GILD
|
161.8B USD | 14.7 | 19 | |
| US |
|
Vertex Pharmaceuticals Inc
NASDAQ:VRTX
|
109.3B USD | 21.6 | 27.6 | |
| US |
E
|
Epizyme Inc
F:EPE
|
94.1B EUR | -565.5 | -533.6 | |
| US |
|
Regeneron Pharmaceuticals Inc
NASDAQ:REGN
|
79.4B USD | 14.9 | 17.6 | |
| NL |
|
argenx SE
XBRU:ARGX
|
41.2B EUR | 41.1 | 37.3 | |
| US |
S
|
Seagen Inc
F:SGT
|
39.3B EUR | -60.1 | -61.8 | |
| AU |
|
CSL Ltd
ASX:CSL
|
62.7B AUD | 13.1 | 30.7 |
Market Distribution
| Min | 0 |
| 30th Percentile | 16.6 |
| Median | 28.9 |
| 70th Percentile | 52.9 |
| Max | 49 021 |
Other Multiples
Zai Lab Ltd
Glance View
Zai Lab Ltd. is an innovative player in the biotech and pharmaceutical landscape, emerging from China with ambitions that stretch globally. Founded in 2013, the company has quickly built a robust portfolio, focusing on oncology, autoimmune disorders, infectious diseases, and neuroscience. Zai Lab has established itself with a hybrid business model that intertwines the agility of a biotech startup with the strategic partnerships of a mature pharmaceutical company. This approach has allowed it to localize and expedite the development of cutting-edge therapeutics for the Chinese market while simultaneously building a presence in international markets. What sets Zai Lab apart is its keen ability to in-license late-stage pharmaceutical assets from global partners, significantly cutting down on the time and resources typically required for new drug development. The company generates revenue primarily by commercializing these in-licensed drugs in China and neighboring regions. Zai Lab has also expanded its revenue streams through co-development deals, wherein it collaborates with global pharmaceutical giants. This involves sharing research and development costs, thus reducing upfront investment while simultaneously broadening its pipeline. Furthermore, Zai Lab's financial success is bolstered by its strong market position in several key therapeutic areas, driving growth and reinforcing its status as a bridge between international drug innovation and the Chinese healthcare sector. With a focus on rapid commercialization and strong partnerships, Zai Lab continues to blaze a trail in the biopharma industry, well-suited for navigating both domestic and international markets.
