Intrinsic value of Perrigo - PRGO

Previous Close

$71.82

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$71.82

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

We calculate the intrinsic value of PRGO stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
(a)
   1
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -100.00
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  0
  5,045
  5,161
  5,294
  5,443
  5,608
  5,789
  5,986
  6,199
  6,429
  6,676
  6,940
  7,222
  7,521
  7,840
  8,178
  8,537
  8,916
  9,317
  9,741
  10,189
  10,661
  11,159
  11,684
  12,237
  12,820
  13,433
  14,079
  14,758
  15,473
  16,225
Variable operating expenses, $m
 
  6,942
  7,084
  7,247
  7,430
  7,632
  7,854
  8,096
  8,357
  8,639
  8,942
  8,510
  8,855
  9,223
  9,614
  10,029
  10,468
  10,933
  11,425
  11,945
  12,494
  13,073
  13,684
  14,328
  15,006
  15,720
  16,472
  17,264
  18,097
  18,974
  19,896
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  0
  6,942
  7,084
  7,247
  7,430
  7,632
  7,854
  8,096
  8,357
  8,639
  8,942
  8,510
  8,855
  9,223
  9,614
  10,029
  10,468
  10,933
  11,425
  11,945
  12,494
  13,073
  13,684
  14,328
  15,006
  15,720
  16,472
  17,264
  18,097
  18,974
  19,896
Operating income, $m
  0
  -1,897
  -1,923
  -1,953
  -1,987
  -2,024
  -2,065
  -2,110
  -2,158
  -2,210
  -2,266
  -1,570
  -1,634
  -1,702
  -1,774
  -1,850
  -1,931
  -2,017
  -2,108
  -2,204
  -2,305
  -2,412
  -2,525
  -2,643
  -2,768
  -2,900
  -3,039
  -3,185
  -3,339
  -3,501
  -3,671
EBITDA, $m
  0
  -892
  -912
  -935
  -962
  -991
  -1,023
  -1,058
  -1,095
  -1,136
  -1,180
  -1,226
  -1,276
  -1,329
  -1,385
  -1,445
  -1,509
  -1,576
  -1,646
  -1,721
  -1,800
  -1,884
  -1,972
  -2,065
  -2,162
  -2,265
  -2,374
  -2,488
  -2,608
  -2,734
  -2,867
Interest expense (income), $m
  0
  180
  186
  193
  201
  210
  220
  231
  242
  255
  269
  284
  299
  316
  334
  353
  373
  394
  417
  441
  466
  493
  521
  551
  582
  615
  650
  686
  725
  765
  808
Earnings before tax, $m
  0
  -2,077
  -2,110
  -2,146
  -2,188
  -2,234
  -2,285
  -2,340
  -2,400
  -2,465
  -2,535
  -1,854
  -1,933
  -2,018
  -2,108
  -2,203
  -2,304
  -2,412
  -2,525
  -2,645
  -2,771
  -2,905
  -3,046
  -3,194
  -3,350
  -3,515
  -3,689
  -3,871
  -4,063
  -4,266
  -4,478
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  0
  -2,077
  -2,110
  -2,146
  -2,188
  -2,234
  -2,285
  -2,340
  -2,400
  -2,465
  -2,535
  -1,854
  -1,933
  -2,018
  -2,108
  -2,203
  -2,304
  -2,412
  -2,525
  -2,645
  -2,771
  -2,905
  -3,046
  -3,194
  -3,350
  -3,515
  -3,689
  -3,871
  -4,063
  -4,266
  -4,478

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  0
  11,871
  12,144
  12,456
  12,806
  13,195
  13,621
  14,085
  14,587
  15,128
  15,708
  16,329
  16,992
  17,698
  18,448
  19,243
  20,087
  20,979
  21,923
  22,921
  23,974
  25,085
  26,257
  27,492
  28,794
  30,165
  31,608
  33,127
  34,726
  36,407
  38,176
Adjusted assets (=assets-cash), $m
  0
  11,871
  12,144
  12,456
  12,806
  13,195
  13,621
  14,085
  14,587
  15,128
  15,708
  16,329
  16,992
  17,698
  18,448
  19,243
  20,087
  20,979
  21,923
  22,921
  23,974
  25,085
  26,257
  27,492
  28,794
  30,165
  31,608
  33,127
  34,726
  36,407
  38,176
Revenue / Adjusted assets
  0.000
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
  0.425
Average production assets, $m
  0
  4,722
  4,831
  4,955
  5,094
  5,249
  5,418
  5,603
  5,803
  6,018
  6,249
  6,496
  6,759
  7,040
  7,338
  7,655
  7,990
  8,346
  8,721
  9,118
  9,537
  9,979
  10,445
  10,936
  11,454
  11,999
  12,574
  13,178
  13,814
  14,483
  15,187
Working capital, $m
  0
  792
  810
  831
  855
  880
  909
  940
  973
  1,009
  1,048
  1,090
  1,134
  1,181
  1,231
  1,284
  1,340
  1,400
  1,463
  1,529
  1,600
  1,674
  1,752
  1,834
  1,921
  2,013
  2,109
  2,210
  2,317
  2,429
  2,547
Total debt, $m
  0
  3,450
  3,578
  3,725
  3,889
  4,071
  4,271
  4,489
  4,724
  4,978
  5,250
  5,541
  5,852
  6,183
  6,535
  6,908
  7,304
  7,722
  8,165
  8,633
  9,127
  9,648
  10,197
  10,777
  11,387
  12,030
  12,707
  13,419
  14,169
  14,958
  15,788
Total liabilities, $m
  0
  5,567
  5,695
  5,842
  6,006
  6,188
  6,388
  6,606
  6,841
  7,095
  7,367
  7,658
  7,969
  8,300
  8,652
  9,025
  9,421
  9,839
  10,282
  10,750
  11,244
  11,765
  12,315
  12,894
  13,504
  14,147
  14,824
  15,537
  16,286
  17,075
  17,905
Total equity, $m
  0
  6,303
  6,448
  6,614
  6,800
  7,006
  7,233
  7,479
  7,746
  8,033
  8,341
  8,671
  9,023
  9,397
  9,796
  10,218
  10,666
  11,140
  11,641
  12,171
  12,730
  13,320
  13,942
  14,598
  15,290
  16,017
  16,784
  17,590
  18,439
  19,332
  20,272
Total liabilities and equity, $m
  0
  11,870
  12,143
  12,456
  12,806
  13,194
  13,621
  14,085
  14,587
  15,128
  15,708
  16,329
  16,992
  17,697
  18,448
  19,243
  20,087
  20,979
  21,923
  22,921
  23,974
  25,085
  26,257
  27,492
  28,794
  30,164
  31,608
  33,127
  34,725
  36,407
  38,177
Debt-to-equity ratio
  0.000
  0.550
  0.550
  0.560
  0.570
  0.580
  0.590
  0.600
  0.610
  0.620
  0.630
  0.640
  0.650
  0.660
  0.670
  0.680
  0.680
  0.690
  0.700
  0.710
  0.720
  0.720
  0.730
  0.740
  0.740
  0.750
  0.760
  0.760
  0.770
  0.770
  0.780
Adjusted equity ratio
  0.000
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531
  0.531

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  0
  -2,077
  -2,110
  -2,146
  -2,188
  -2,234
  -2,285
  -2,340
  -2,400
  -2,465
  -2,535
  -1,854
  -1,933
  -2,018
  -2,108
  -2,203
  -2,304
  -2,412
  -2,525
  -2,645
  -2,771
  -2,905
  -3,046
  -3,194
  -3,350
  -3,515
  -3,689
  -3,871
  -4,063
  -4,266
  -4,478
Depreciation, amort., depletion, $m
  0
  1,005
  1,011
  1,018
  1,025
  1,033
  1,042
  1,052
  1,063
  1,074
  1,086
  344
  358
  372
  388
  405
  423
  442
  461
  482
  505
  528
  553
  579
  606
  635
  665
  697
  731
  766
  804
Funds from operations, $m
  0
  -1,072
  -1,098
  -1,129
  -1,163
  -1,201
  -1,243
  -1,288
  -1,338
  -1,391
  -1,448
  -1,510
  -1,575
  -1,645
  -1,719
  -1,798
  -1,882
  -1,970
  -2,063
  -2,162
  -2,267
  -2,377
  -2,493
  -2,615
  -2,744
  -2,880
  -3,023
  -3,174
  -3,333
  -3,499
  -3,675
Change in working capital, $m
  0
  16
  18
  21
  23
  26
  28
  31
  34
  36
  39
  41
  44
  47
  50
  53
  56
  60
  63
  67
  70
  74
  78
  82
  87
  91
  96
  101
  107
  112
  118
Cash from operations, $m
  0
  -1,087
  -1,117
  -1,150
  -1,186
  -1,227
  -1,271
  -1,319
  -1,371
  -1,427
  -1,487
  -1,551
  -1,620
  -1,692
  -1,769
  -1,851
  -1,938
  -2,030
  -2,126
  -2,229
  -2,337
  -2,451
  -2,571
  -2,698
  -2,831
  -2,972
  -3,120
  -3,275
  -3,439
  -3,612
  -3,793
Maintenance CAPEX, $m
  0
  -245
  -250
  -256
  -262
  -270
  -278
  -287
  -296
  -307
  -318
  -331
  -344
  -358
  -372
  -388
  -405
  -423
  -442
  -461
  -482
  -505
  -528
  -553
  -579
  -606
  -635
  -665
  -697
  -731
  -766
New CAPEX, $m
  0
  -91
  -109
  -124
  -139
  -154
  -169
  -185
  -200
  -215
  -231
  -247
  -264
  -281
  -298
  -317
  -335
  -355
  -376
  -397
  -419
  -442
  -466
  -491
  -518
  -545
  -574
  -604
  -636
  -669
  -704
Cash from investing activities, $m
  0
  -336
  -359
  -380
  -401
  -424
  -447
  -472
  -496
  -522
  -549
  -578
  -608
  -639
  -670
  -705
  -740
  -778
  -818
  -858
  -901
  -947
  -994
  -1,044
  -1,097
  -1,151
  -1,209
  -1,269
  -1,333
  -1,400
  -1,470
Free cash flow, $m
  0
  -1,424
  -1,475
  -1,529
  -1,588
  -1,651
  -1,718
  -1,791
  -1,868
  -1,950
  -2,037
  -2,129
  -2,227
  -2,331
  -2,440
  -2,556
  -2,678
  -2,807
  -2,944
  -3,087
  -3,238
  -3,398
  -3,565
  -3,742
  -3,928
  -4,123
  -4,329
  -4,545
  -4,772
  -5,011
  -5,263
Issuance/(repayment) of debt, $m
  0
  109
  128
  146
  164
  182
  200
  218
  235
  254
  272
  291
  311
  331
  352
  373
  396
  419
  443
  468
  494
  521
  550
  579
  610
  643
  677
  712
  750
  789
  830
Issuance/(repurchase) of shares, $m
  0
  2,210
  2,255
  2,312
  2,374
  2,440
  2,511
  2,587
  2,667
  2,752
  2,843
  2,183
  2,285
  2,392
  2,506
  2,626
  2,752
  2,886
  3,026
  3,174
  3,330
  3,495
  3,668
  3,850
  4,042
  4,243
  4,455
  4,678
  4,912
  5,159
  5,418
Cash from financing (excl. dividends), $m  
  0
  2,319
  2,383
  2,458
  2,538
  2,622
  2,711
  2,805
  2,902
  3,006
  3,115
  2,474
  2,596
  2,723
  2,858
  2,999
  3,148
  3,305
  3,469
  3,642
  3,824
  4,016
  4,218
  4,429
  4,652
  4,886
  5,132
  5,390
  5,662
  5,948
  6,248
Total cash flow (excl. dividends), $m
  0
  896
  908
  929
  951
  972
  993
  1,014
  1,035
  1,057
  1,079
  346
  369
  393
  417
  443
  469
  497
  525
  555
  586
  618
  652
  687
  724
  763
  803
  845
  890
  936
  984
Retained Cash Flow (-), $m
  0
  -2,210
  -2,255
  -2,312
  -2,374
  -2,440
  -2,511
  -2,587
  -2,667
  -2,752
  -2,843
  -2,183
  -2,285
  -2,392
  -2,506
  -2,626
  -2,752
  -2,886
  -3,026
  -3,174
  -3,330
  -3,495
  -3,668
  -3,850
  -4,042
  -4,243
  -4,455
  -4,678
  -4,912
  -5,159
  -5,418
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -1,315
  -1,347
  -1,383
  -1,424
  -1,469
  -1,519
  -1,573
  -1,632
  -1,696
  -1,764
  -1,838
  -1,916
  -2,000
  -2,088
  -2,183
  -2,283
  -2,389
  -2,501
  -2,619
  -2,744
  -2,876
  -3,016
  -3,162
  -3,317
  -3,480
  -3,652
  -3,833
  -4,023
  -4,223
  -4,433
Discount rate, %
 
  5.70
  5.99
  6.28
  6.60
  6.93
  7.27
  7.64
  8.02
  8.42
  8.84
  9.28
  9.75
  10.24
  10.75
  11.29
  11.85
  12.44
  13.06
  13.72
  14.40
  15.12
  15.88
  16.67
  17.51
  18.38
  19.30
  20.27
  21.28
  22.34
  23.46
PV of cash for distribution, $m
 
  -1,244
  -1,199
  -1,152
  -1,102
  -1,051
  -996
  -940
  -880
  -819
  -756
  -692
  -627
  -563
  -500
  -439
  -380
  -325
  -274
  -228
  -186
  -149
  -118
  -91
  -69
  -51
  -37
  -26
  -18
  -12
  -8
Current shareholders' claim on cash, %
  100
  81.6
  66.7
  54.4
  44.4
  36.2
  29.6
  24.2
  19.7
  16.1
  13.2
  11.3
  9.7
  8.3
  7.1
  6.1
  5.2
  4.5
  3.8
  3.3
  2.8
  2.4
  2.0
  1.7
  1.5
  1.3
  1.1
  0.9
  0.8
  0.7
  0.6

Perrigo Company plc, together with its subsidiaries, develops, manufactures, markets, and distributes over-the-counter (OTC) consumer goods and pharmaceutical products worldwide. The company operates through Consumer Healthcare (CHC), Branded Consumer Healthcare (BCH), Prescription Pharmaceuticals (Rx), Specialty Sciences, and Other segments. The CHC segment offers OTC products in various categories, including analgesics, cough/cold/allergy/sinus, gastrointestinal, infant nutritional, smoking cessation, animal health, feminine hygiene, diabetes and dermatological care, diagnostic, scar management, and other healthcare products, as well as vitamins, minerals, and dietary supplements (VMS); and contract manufacturing services. It serves retail drug, supermarket, mass merchandise chains, and wholesalers through sales force and industry brokers. The BCH segment provides branded OTC products in the natural health and VMS; cough, cold, flu, and allergy; personal care and derma-therapeutics; lifestyle; pain relief, nasal decongestants, and cold sore management; and anti-parasite areas, as well as offers generic pharmaceutical products. It serves pharmacies, drug, and grocery stores through pharmacy sales force, as well as a network of pharmacists. The Rx segment offers generic and specialty pharmaceutical prescription drugs in various dosage forms, such as creams, ointments, lotions, gels, shampoos, foams, suppositories, sprays, liquids, suspensions, solutions, powders, controlled substances, injectables, hormones, women's health products, oral solid dosage forms, and oral liquid formulations; and ORx products. It serves wholesalers; retail drug, supermarket, and mass merchandise chains; hospitals; and pharmacies. The Specialty Sciences segment offers Tysabri to treat multiple sclerosis. The Other segment offers active pharmaceutical ingredients used by generic and branded pharmaceutical companies. The company was founded in 1887 and is headquartered in Dublin, Ireland.

FINANCIAL RATIOS  of  Perrigo (PRGO)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

PRGO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PRGO stock intrinsic value calculation we used $4946.2 million for the last fiscal year's total revenue generated by Perrigo. The default revenue input number comes from income statement of Perrigo. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our PRGO stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 5.7%, whose default value for PRGO is calculated based on our internal credit rating of Perrigo, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Perrigo.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of PRGO stock the variable cost ratio is equal to 137.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for PRGO stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Perrigo.

Corporate tax rate of 27% is the nominal tax rate for Perrigo. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the PRGO stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for PRGO are equal to 93.6%.

Life of production assets of 18.9 years is the average useful life of capital assets used in Perrigo operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for PRGO is equal to 15.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $6170.5 million for Perrigo - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 136.833 million for Perrigo is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Perrigo at the current share price and the inputted number of shares is $9.8 billion.

COMPANY NEWS

▶ [$$] The Future at Perrigo Is Brighter Than Investors Think   [Oct-09-18 11:30AM  The Wall Street Journal]
▶ [$$] Stocks to Watch: Alphabet, Exxon, Papa John's, Tesla   [09:16AM  The Wall Street Journal]
▶ [$$] Drugmaker Perrigo Hires a New CEO   [Oct-08-18 09:41PM  The Wall Street Journal]
▶ Perrigo appoints Murray Kessler as CEO   [05:17PM  MarketWatch]
▶ Perrigo to Reschedule Investor Event   [Aug-29-18 04:15PM  PR Newswire]
▶ [$$] Perrigo to Separate Its Prescription Pharmaceutical Business   [Aug-09-18 07:46PM  The Wall Street Journal]
▶ Mylan, Perrigo Earnings: Look Out Below!   [02:46PM  Barrons.com]
▶ Perrigo Co. Plc to Host Earnings Call   [06:30AM  ACCESSWIRE]
▶ Perrigo: 2Q Earnings Snapshot   [05:02AM  Associated Press]
▶ Perrigo's Q2 Earnings Preview   [Aug-08-18 03:05PM  Benzinga]
▶ Perrigo Announces Quarterly Dividend   [Aug-01-18 08:44AM  PR Newswire]
▶ Drug Makers Can't Cure Investor Impatience   [Jul-12-18 03:21PM  Barrons.com]
▶ Valeant & Perrigo: Buy One, Skip the Other   [Jun-06-18 11:41AM  Barrons.com]
▶ Perrigo Stock Is Just Bearish, Any Way You Look At It   [Jun-01-18 02:23PM  TheStreet.com]
▶ Starboard Value Buys $30.2 Million More in Perrigo Stock   [May-21-18 01:42PM  Barrons.com]
▶ Teva Pharma Spiked To Perrigo's Detriment On Asthma Inhaler Delay   [May-14-18 04:55PM  Investor's Business Daily]
▶ [$$] FDA Rejects Perrigo's ProAir Generic, Drug Maker Says   [05:02PM  The Wall Street Journal]
▶ Perrigo Announces Quarterly Dividend   [May-03-18 09:41AM  PR Newswire]
▶ Perrigo shares rise more than 4%, snapping losing streak   [Mar-02-18 04:16PM  MarketWatch]
▶ Perrigo Co. Plc to Host Earnings Call   [Feb-26-18 07:45AM  ACCESSWIRE]
Financial statements of PRGO
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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