Intrinsic value of Mylan - MYL

Previous Close

$35.14

  Intrinsic Value

$44.52

stock screener

  Rating & Target

buy

+27%

Previous close

$35.14

 
Intrinsic value

$44.52

 
Up/down potential

+27%

 
Rating

buy

We calculate the intrinsic value of MYL 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

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 18.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  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
  12,146
  12,425
  12,745
  13,103
  13,500
  13,936
  14,411
  14,925
  15,478
  16,072
  16,708
  17,386
  18,108
  18,875
  19,689
  20,552
  21,465
  22,431
  23,452
  24,529
  25,666
  26,865
  28,129
  29,461
  30,863
  32,340
  33,894
  35,530
  37,251
  39,061
Variable operating expenses, $m
  2,220
  2,213
  2,204
  2,195
  2,184
  2,172
  2,160
  2,146
  2,131
  2,115
  -447
  -465
  -484
  -505
  -526
  -550
  -574
  -600
  -627
  -656
  -686
  -718
  -752
  -788
  -825
  -865
  -906
  -950
  -996
  -1,044
Fixed operating expenses, $m
  8,670
  8,860
  9,055
  9,255
  9,458
  9,666
  9,879
  10,096
  10,318
  10,545
  10,777
  11,014
  11,257
  11,504
  11,757
  12,016
  12,280
  12,551
  12,827
  13,109
  13,397
  13,692
  13,993
  14,301
  14,616
  14,937
  15,266
  15,602
  15,945
  16,296
Total operating expenses, $m
  10,890
  11,073
  11,259
  11,450
  11,642
  11,838
  12,039
  12,242
  12,449
  12,660
  10,330
  10,549
  10,773
  10,999
  11,231
  11,466
  11,706
  11,951
  12,200
  12,453
  12,711
  12,974
  13,241
  13,513
  13,791
  14,072
  14,360
  14,652
  14,949
  15,252
Operating income, $m
  1,256
  1,352
  1,485
  1,654
  1,858
  2,097
  2,372
  2,682
  3,028
  3,411
  6,377
  6,836
  7,335
  7,875
  8,458
  9,085
  9,759
  10,480
  11,252
  12,076
  12,955
  13,892
  14,888
  15,947
  17,073
  18,268
  19,535
  20,878
  22,302
  23,809
EBITDA, $m
  4,801
  4,920
  5,080
  5,278
  5,515
  5,790
  6,104
  6,456
  6,848
  7,280
  7,753
  8,268
  8,826
  9,430
  10,079
  10,778
  11,526
  12,327
  13,183
  14,096
  15,069
  16,104
  17,204
  18,374
  19,614
  20,931
  22,326
  23,804
  25,369
  27,026
Interest expense (income), $m
  0
  795
  817
  845
  878
  914
  955
  999
  1,048
  1,100
  1,156
  1,217
  1,281
  1,350
  1,424
  1,502
  1,585
  1,673
  1,766
  1,864
  1,968
  2,078
  2,194
  2,316
  2,445
  2,580
  2,723
  2,873
  3,032
  3,198
  3,374
Earnings before tax, $m
  461
  535
  640
  776
  944
  1,143
  1,373
  1,635
  1,929
  2,255
  5,160
  5,555
  5,985
  6,451
  6,956
  7,500
  8,086
  8,714
  9,388
  10,108
  10,877
  11,698
  12,572
  13,503
  14,493
  15,544
  16,661
  17,847
  19,103
  20,436
Tax expense, $m
  124
  144
  173
  209
  255
  309
  371
  441
  521
  609
  1,393
  1,500
  1,616
  1,742
  1,878
  2,025
  2,183
  2,353
  2,535
  2,729
  2,937
  3,158
  3,394
  3,646
  3,913
  4,197
  4,499
  4,819
  5,158
  5,518
Net income, $m
  336
  391
  467
  566
  689
  834
  1,002
  1,193
  1,408
  1,646
  3,767
  4,055
  4,369
  4,709
  5,078
  5,475
  5,903
  6,361
  6,853
  7,379
  7,940
  8,539
  9,178
  9,857
  10,580
  11,347
  12,163
  13,028
  13,946
  14,918

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
Total assets, $m
  36,474
  37,313
  38,272
  39,348
  40,541
  41,850
  43,276
  44,818
  46,481
  48,264
  50,173
  52,209
  54,377
  56,681
  59,126
  61,717
  64,460
  67,361
  70,425
  73,661
  77,076
  80,676
  84,472
  88,471
  92,683
  97,117
  101,785
  106,697
  111,864
  117,299
Adjusted assets (=assets-cash), $m
  36,474
  37,313
  38,272
  39,348
  40,541
  41,850
  43,276
  44,818
  46,481
  48,264
  50,173
  52,209
  54,377
  56,681
  59,126
  61,717
  64,460
  67,361
  70,425
  73,661
  77,076
  80,676
  84,472
  88,471
  92,683
  97,117
  101,785
  106,697
  111,864
  117,299
Revenue / Adjusted assets
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
Average production assets, $m
  14,903
  15,246
  15,638
  16,077
  16,565
  17,100
  17,682
  18,312
  18,992
  19,720
  20,500
  21,332
  22,218
  23,159
  24,158
  25,217
  26,338
  27,523
  28,775
  30,097
  31,492
  32,964
  34,514
  36,148
  37,869
  39,681
  41,588
  43,595
  45,707
  47,927
Working capital, $m
  2,441
  2,497
  2,562
  2,634
  2,714
  2,801
  2,897
  3,000
  3,111
  3,230
  3,358
  3,495
  3,640
  3,794
  3,958
  4,131
  4,315
  4,509
  4,714
  4,930
  5,159
  5,400
  5,654
  5,922
  6,204
  6,500
  6,813
  7,142
  7,487
  7,851
Total debt, $m
  15,128
  15,655
  16,257
  16,933
  17,682
  18,504
  19,399
  20,368
  21,412
  22,532
  23,730
  25,009
  26,371
  27,818
  29,353
  30,981
  32,703
  34,525
  36,449
  38,481
  40,626
  42,887
  45,270
  47,782
  50,427
  53,212
  56,143
  59,227
  62,473
  65,886
Total liabilities, $m
  22,906
  23,433
  24,035
  24,711
  25,460
  26,282
  27,177
  28,146
  29,190
  30,310
  31,508
  32,787
  34,149
  35,596
  37,131
  38,759
  40,481
  42,303
  44,227
  46,259
  48,404
  50,665
  53,048
  55,560
  58,205
  60,990
  63,921
  67,005
  70,251
  73,664
Total equity, $m
  13,568
  13,880
  14,237
  14,638
  15,081
  15,568
  16,099
  16,672
  17,291
  17,954
  18,664
  19,422
  20,228
  21,085
  21,995
  22,959
  23,979
  25,058
  26,198
  27,402
  28,672
  30,012
  31,424
  32,911
  34,478
  36,128
  37,864
  39,691
  41,613
  43,635
Total liabilities and equity, $m
  36,474
  37,313
  38,272
  39,349
  40,541
  41,850
  43,276
  44,818
  46,481
  48,264
  50,172
  52,209
  54,377
  56,681
  59,126
  61,718
  64,460
  67,361
  70,425
  73,661
  77,076
  80,677
  84,472
  88,471
  92,683
  97,118
  101,785
  106,696
  111,864
  117,299
Debt-to-equity ratio
  1.110
  1.130
  1.140
  1.160
  1.170
  1.190
  1.210
  1.220
  1.240
  1.250
  1.270
  1.290
  1.300
  1.320
  1.330
  1.350
  1.360
  1.380
  1.390
  1.400
  1.420
  1.430
  1.440
  1.450
  1.460
  1.470
  1.480
  1.490
  1.500
  1.510
Adjusted equity ratio
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  336
  391
  467
  566
  689
  834
  1,002
  1,193
  1,408
  1,646
  3,767
  4,055
  4,369
  4,709
  5,078
  5,475
  5,903
  6,361
  6,853
  7,379
  7,940
  8,539
  9,178
  9,857
  10,580
  11,347
  12,163
  13,028
  13,946
  14,918
Depreciation, amort., depletion, $m
  3,545
  3,568
  3,595
  3,624
  3,657
  3,693
  3,732
  3,774
  3,820
  3,869
  1,376
  1,432
  1,491
  1,554
  1,621
  1,692
  1,768
  1,847
  1,931
  2,020
  2,114
  2,212
  2,316
  2,426
  2,542
  2,663
  2,791
  2,926
  3,068
  3,217
Funds from operations, $m
  3,882
  3,959
  4,062
  4,191
  4,346
  4,527
  4,734
  4,968
  5,228
  5,515
  5,143
  5,487
  5,860
  6,264
  6,699
  7,168
  7,670
  8,209
  8,784
  9,399
  10,054
  10,752
  11,494
  12,283
  13,121
  14,011
  14,954
  15,954
  17,013
  18,135
Change in working capital, $m
  48
  56
  64
  72
  80
  88
  95
  103
  111
  119
  128
  136
  145
  154
  164
  173
  184
  194
  205
  217
  229
  241
  254
  268
  282
  297
  312
  329
  346
  364
Cash from operations, $m
  3,834
  3,903
  3,997
  4,119
  4,266
  4,439
  4,639
  4,864
  5,116
  5,396
  5,015
  5,350
  5,715
  6,109
  6,536
  6,994
  7,487
  8,014
  8,579
  9,182
  9,825
  10,511
  11,240
  12,015
  12,839
  13,714
  14,642
  15,625
  16,667
  17,771
Maintenance CAPEX, $m
  -981
  -1,000
  -1,023
  -1,049
  -1,079
  -1,112
  -1,148
  -1,187
  -1,229
  -1,275
  -1,324
  -1,376
  -1,432
  -1,491
  -1,554
  -1,621
  -1,692
  -1,768
  -1,847
  -1,931
  -2,020
  -2,114
  -2,212
  -2,316
  -2,426
  -2,542
  -2,663
  -2,791
  -2,926
  -3,068
New CAPEX, $m
  -290
  -343
  -392
  -440
  -487
  -535
  -582
  -630
  -679
  -729
  -780
  -832
  -886
  -941
  -999
  -1,059
  -1,121
  -1,185
  -1,252
  -1,322
  -1,395
  -1,471
  -1,551
  -1,634
  -1,721
  -1,812
  -1,907
  -2,007
  -2,111
  -2,221
Cash from investing activities, $m
  -1,271
  -1,343
  -1,415
  -1,489
  -1,566
  -1,647
  -1,730
  -1,817
  -1,908
  -2,004
  -2,104
  -2,208
  -2,318
  -2,432
  -2,553
  -2,680
  -2,813
  -2,953
  -3,099
  -3,253
  -3,415
  -3,585
  -3,763
  -3,950
  -4,147
  -4,354
  -4,570
  -4,798
  -5,037
  -5,289
Free cash flow, $m
  2,564
  2,560
  2,582
  2,629
  2,699
  2,793
  2,909
  3,047
  3,208
  3,392
  2,912
  3,142
  3,397
  3,677
  3,982
  4,314
  4,674
  5,062
  5,480
  5,929
  6,410
  6,926
  7,477
  8,065
  8,692
  9,360
  10,071
  10,827
  11,630
  12,483
Issuance/(repayment) of debt, $m
  407
  527
  602
  676
  749
  822
  895
  969
  1,044
  1,120
  1,198
  1,279
  1,362
  1,447
  1,535
  1,627
  1,722
  1,822
  1,925
  2,032
  2,144
  2,261
  2,384
  2,511
  2,645
  2,785
  2,931
  3,085
  3,245
  3,413
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  407
  527
  602
  676
  749
  822
  895
  969
  1,044
  1,120
  1,198
  1,279
  1,362
  1,447
  1,535
  1,627
  1,722
  1,822
  1,925
  2,032
  2,144
  2,261
  2,384
  2,511
  2,645
  2,785
  2,931
  3,085
  3,245
  3,413
Total cash flow (excl. dividends), $m
  2,971
  3,087
  3,185
  3,305
  3,449
  3,615
  3,804
  4,016
  4,252
  4,512
  4,110
  4,421
  4,759
  5,124
  5,518
  5,941
  6,396
  6,883
  7,404
  7,961
  8,555
  9,187
  9,860
  10,576
  11,337
  12,145
  13,002
  13,912
  14,875
  15,896
Retained Cash Flow (-), $m
  -261
  -312
  -357
  -400
  -444
  -487
  -530
  -574
  -618
  -664
  -710
  -758
  -807
  -857
  -910
  -964
  -1,020
  -1,079
  -1,140
  -1,204
  -1,270
  -1,339
  -1,412
  -1,488
  -1,567
  -1,650
  -1,736
  -1,827
  -1,922
  -2,022
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
  2,710
  2,775
  2,828
  2,905
  3,005
  3,128
  3,274
  3,442
  3,634
  3,849
  3,400
  3,664
  3,952
  4,267
  4,608
  4,977
  5,376
  5,804
  6,264
  6,757
  7,284
  7,848
  8,449
  9,089
  9,771
  10,496
  11,266
  12,084
  12,953
  13,874
Discount rate, %
  8.30
  8.72
  9.15
  9.61
  10.09
  10.59
  11.12
  11.68
  12.26
  12.88
  13.52
  14.20
  14.91
  15.65
  16.43
  17.26
  18.12
  19.02
  19.97
  20.97
  22.02
  23.12
  24.28
  25.49
  26.77
  28.11
  29.51
  30.99
  32.54
  34.16
PV of cash for distribution, $m
  2,502
  2,348
  2,175
  2,012
  1,858
  1,710
  1,565
  1,423
  1,283
  1,146
  843
  745
  649
  557
  470
  390
  317
  253
  197
  150
  111
  81
  57
  39
  26
  17
  10
  6
  4
  2
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Mylan N.V., together with its subsidiaries, develops, licenses, manufactures, markets, and distributes generic, branded generic, and specialty pharmaceuticals worldwide. The company provides generic or branded generic pharmaceutical products in tablet, capsule, injectable, transdermal patch, gel, cream, or ointment forms, as well as active pharmaceutical ingredients (APIs). It is also involved in the development of APIs with non-infringing processes for internal use and to partner with manufacturers; and manufacture and sale of injectable products in antineoplastics, anti-infectives, anesthesia/pain management, and cardiovascular therapeutic areas. In addition, the company produces finished dosage form and oral solid dose products; and offers antiretroviral therapies to third parties. Further, it manufactures and sells branded specialty injectable and nebulized products comprising EpiPen Auto-Injector to treat severe allergic reactions; Perforomist Inhalation Solution, a formoterol fumarate inhalation solution for the maintenance treatment of bronchoconstriction in chronic obstructive pulmonary disorder patients; and ULTIVA, an analgesic agent used during the induction and maintenance of general anesthesia for inpatient and outpatient procedures. It sells generic pharmaceutical products to proprietary and ethical pharmaceutical wholesalers and distributors, group purchasing organizations, drug store chains, independent pharmacies, drug manufacturers, institutions, and public and governmental agencies; and specialty pharmaceuticals to pharmaceutical wholesalers and distributors, pharmacies, and healthcare institutions. Mylan N.V. has a collaboration agreement with Momenta Pharmaceuticals, Inc. to develop, manufacture, and commercialize Momenta Pharmaceuticals, Inc.’s biosimilar candidates. The company was formerly known as New Moon B.V. Mylan N.V. was founded in 1961 and is based in Hertfordshire, the United Kingdom.

FINANCIAL RATIOS  of  Mylan (MYL)

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%

MYL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MYL stock intrinsic value calculation we used $11907.7 million for the last fiscal year's total revenue generated by Mylan. The default revenue input number comes from 0001 income statement of Mylan. 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 MYL 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 8.3%, whose default value for MYL is calculated based on our internal credit rating of Mylan, 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 Mylan.
    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 MYL stock the variable cost ratio is equal to 18.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $8483 million in the base year in the intrinsic value calculation for MYL 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 Mylan.

Corporate tax rate of 27% is the nominal tax rate for Mylan. 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 MYL 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 MYL are equal to 122.7%.

Life of production assets of 14.9 years is the average useful life of capital assets used in Mylan 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 MYL is equal to 20.1%. 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 - $13307.6 million for Mylan - 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 515.47 million for Mylan 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 Mylan at the current share price and the inputted number of shares is $18.1 billion.

RELATED COMPANIES Price Int.Val. Rating
GSK GlaxoSmithKlin 40.41 350.10  str.buy
AZN AstraZeneca AD 41.40 162.71  str.buy
PFE Pfizer 43.21 34.10  hold
TEVA Teva Pharmaceu 22.62 40.23  str.buy
RDY Dr. Reddy' 34.49 77.39  str.buy

COMPANY NEWS

▶ David Einhorn's Top 4 Sells in 3rd Quarter   [Nov-16-18 04:20PM  GuruFocus.com]
▶ Momenta Moves On   [02:06PM  Motley Fool]
▶ Company News For Nov 7, 2018   [09:44AM  Zacks]
▶ Why Mylan N.V. Stock Is Soaring Today   [11:58AM  Motley Fool]
▶ Mylan: 3Q Earnings Snapshot   [04:22PM  Associated Press]
▶ Mylan's Q3 Earnings Preview   [07:49AM  Benzinga]
▶ Knock Offs Loom For J&J's Blockbuster Why An Analyst Is Still Bullish   [Oct-29-18 04:17PM  Investor's Business Daily]
▶ Everyone Loves Treasury Bonds When Stocks Are Slumping   [Oct-23-18 12:18PM  Barrons.com]
▶ [$$] Rivals line up to take on worlds best-selling drug   [Oct-13-18 10:06PM  Financial Times]
▶ 3 Headwinds Hindering Mylan   [09:46AM  Benzinga]
▶ [$$] EpiPen dearth shows company and regulator failure   [Oct-01-18 11:00PM  Financial Times]
▶ [$$] Don Panoz Hopped From Pharmaceuticals to Wine, Resorts and Race Cars   [Sep-28-18 07:22PM  The Wall Street Journal]
▶ Amgen's Neulasta Has a New Competitor in Europe   [Sep-26-18 12:32PM  GuruFocus.com]
▶ FDA chief: Looking to regulate nicotine in cigarettes   [Sep-20-18 03:46PM  Fox Business Videos]

CONTACT US       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.