MergerTalk: Pfizer/Mylan -Don't Overdose on the Sector, but Mylan Over Teva Pair Trade Is Still On

Pharma/ Biotechnology Investments Specialist, Vasuda Capital Management

Dr. Bhavneesh Sharma, MD, MBA

Pharma/ Biotechnology Investments Specialist

Vasuda Capital Management

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/870" target="_blank" data-smartkarma-citation="entities:870:1">Mylan Nv (MYL US)</a> stock has seen some downward pressure since 2015 after the increased capital expenditure and debt load for acquisitions pressurized some financial efficiency measures like ROIC. While the company's debt to equity ratio at present is higher than the industry average (due to recent acquisitions), current ratio and quick ratio are comparable to the industry average. About US$2.4 billion of debt is due in 2018 and the reduction of the debt, and synergies and increase sales from recent large acquisitions are expected to improve operating cash flow growth, profit margin% and ROIC in the next 3 to 4 years.</p><p>We consider <a href="https://www.smartkarma.com/entities/870" target="_blank" data-smartkarma-citation="entities:870:1">Mylan Nv (MYL US)</a> common stock as undervalued at present. Our first price target by enterprise DCF method is US$46. The stock also appears undervalued by relative valuation measures like forward EV/EBITDA. </p>

Mylan Nv (MYL US) stock has seen some downward pressure since 2015 after the increased capital expenditure and debt load for acquisitions pressurized some financial efficiency measures like ROIC. While the company's debt to equity ratio at present is higher than the industry average (due to recent acquisitions), current ratio and quick ratio are comparable to the industry average. About US$2.4 billion of debt is due in 2018 and the reduction of the debt, and synergies and increase sales from recent large acquisitions are expected to improve operating cash flow growth, profit margin% and ROIC in the next 3 to 4 years.We consider Mylan Nv (MYL US) common stock as undervalued at present. Our first price target by enterprise DCF method is US$46. The stock also appears undervalued by relative valuation measures like forward EV/EBITDA. 

Mylan N.V. (MYL US): Another Contrarian Pharmaceutical Investment

Mylan NV

Mylan N.V. (MYL US): Another Contrarian Pharmaceutical Investment