Intrinsic value of Mylan N.V. - MYL

Previous Close

$20.52

  Intrinsic Value

$39.88

stock screener

  Rating & Target

str. buy

+94%

Previous close

$20.52

 
Intrinsic value

$39.88

 
Up/down potential

+94%

 
Rating

str. 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 10.6

 

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
  11,663
  11,931
  12,238
  12,582
  12,963
  13,382
  13,837
  14,331
  14,862
  15,433
  16,043
  16,694
  17,387
  18,124
  18,906
  19,734
  20,611
  21,539
  22,519
  23,553
  24,645
  25,797
  27,010
  28,289
  29,636
  31,054
  32,546
  34,117
  35,769
  37,507
Variable operating expenses, $m
  10,205
  10,386
  10,592
  10,824
  11,082
  11,364
  11,671
  12,004
  12,362
  12,747
  10,817
  11,256
  11,723
  12,220
  12,747
  13,306
  13,897
  14,522
  15,183
  15,881
  16,617
  17,393
  18,211
  19,074
  19,982
  20,938
  21,944
  23,003
  24,117
  25,289
Fixed operating expenses, $m
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
Total operating expenses, $m
  10,204
  10,385
  10,591
  10,823
  11,081
  11,363
  11,670
  12,003
  12,361
  12,746
  10,816
  11,255
  11,722
  12,219
  12,746
  13,305
  13,896
  14,521
  15,181
  15,879
  16,615
  17,391
  18,209
  19,072
  19,980
  20,936
  21,942
  23,001
  24,115
  25,287
Operating income, $m
  1,459
  1,546
  1,646
  1,759
  1,883
  2,019
  2,168
  2,328
  2,502
  2,687
  5,227
  5,439
  5,665
  5,905
  6,160
  6,430
  6,716
  7,018
  7,337
  7,674
  8,030
  8,405
  8,800
  9,217
  9,656
  10,118
  10,604
  11,116
  11,654
  12,220
EBITDA, $m
  4,972
  5,086
  5,217
  5,364
  5,526
  5,705
  5,899
  6,109
  6,336
  6,579
  6,839
  7,117
  7,412
  7,726
  8,060
  8,413
  8,787
  9,182
  9,600
  10,041
  10,506
  10,997
  11,514
  12,059
  12,633
  13,238
  13,874
  14,543
  15,248
  15,989
Interest expense (income), $m
  0
  749
  771
  797
  827
  860
  898
  938
  983
  1,030
  1,082
  1,138
  1,197
  1,260
  1,327
  1,399
  1,475
  1,556
  1,641
  1,731
  1,826
  1,927
  2,033
  2,145
  2,262
  2,387
  2,518
  2,655
  2,800
  2,953
  3,114
Earnings before tax, $m
  710
  775
  849
  931
  1,022
  1,122
  1,229
  1,346
  1,471
  1,605
  4,090
  4,243
  4,405
  4,578
  4,761
  4,955
  5,160
  5,377
  5,606
  5,848
  6,103
  6,372
  6,656
  6,955
  7,269
  7,600
  7,949
  8,315
  8,701
  9,106
Tax expense, $m
  192
  209
  229
  251
  276
  303
  332
  363
  397
  433
  1,104
  1,146
  1,189
  1,236
  1,285
  1,338
  1,393
  1,452
  1,514
  1,579
  1,648
  1,721
  1,797
  1,878
  1,963
  2,052
  2,146
  2,245
  2,349
  2,459
Net income, $m
  519
  566
  620
  680
  746
  819
  897
  982
  1,074
  1,172
  2,986
  3,097
  3,216
  3,342
  3,476
  3,617
  3,767
  3,925
  4,093
  4,269
  4,455
  4,652
  4,859
  5,077
  5,306
  5,548
  5,802
  6,070
  6,352
  6,648

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
  33,417
  34,186
  35,065
  36,051
  37,144
  38,343
  39,649
  41,063
  42,585
  44,220
  45,968
  47,834
  49,820
  51,931
  54,171
  56,545
  59,058
  61,716
  64,524
  67,488
  70,617
  73,916
  77,393
  81,057
  84,916
  88,979
  93,255
  97,755
  102,489
  107,469
Adjusted assets (=assets-cash), $m
  33,417
  34,186
  35,065
  36,051
  37,144
  38,343
  39,649
  41,063
  42,585
  44,220
  45,968
  47,834
  49,820
  51,931
  54,171
  56,545
  59,058
  61,716
  64,524
  67,488
  70,617
  73,916
  77,393
  81,057
  84,916
  88,979
  93,255
  97,755
  102,489
  107,469
Revenue / Adjusted assets
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
Average production assets, $m
  14,765
  15,105
  15,493
  15,929
  16,411
  16,941
  17,518
  18,143
  18,816
  19,538
  20,310
  21,135
  22,012
  22,945
  23,935
  24,984
  26,094
  27,268
  28,509
  29,819
  31,201
  32,658
  34,195
  35,814
  37,519
  39,314
  41,203
  43,192
  45,283
  47,484
Working capital, $m
  2,134
  2,183
  2,239
  2,302
  2,372
  2,449
  2,532
  2,623
  2,720
  2,824
  2,936
  3,055
  3,182
  3,317
  3,460
  3,611
  3,772
  3,942
  4,121
  4,310
  4,510
  4,721
  4,943
  5,177
  5,423
  5,683
  5,956
  6,243
  6,546
  6,864
Total debt, $m
  14,281
  14,764
  15,316
  15,935
  16,621
  17,375
  18,195
  19,082
  20,039
  21,065
  22,163
  23,335
  24,582
  25,908
  27,315
  28,806
  30,384
  32,053
  33,816
  35,678
  37,642
  39,714
  41,898
  44,199
  46,622
  49,174
  51,859
  54,685
  57,658
  60,786
Total liabilities, $m
  20,986
  21,469
  22,021
  22,640
  23,326
  24,079
  24,900
  25,787
  26,744
  27,770
  28,868
  30,040
  31,287
  32,613
  34,020
  35,510
  37,089
  38,757
  40,521
  42,383
  44,347
  46,419
  48,603
  50,904
  53,327
  55,879
  58,564
  61,390
  64,363
  67,491
Total equity, $m
  12,431
  12,717
  13,044
  13,411
  13,818
  14,264
  14,749
  15,275
  15,842
  16,450
  17,100
  17,794
  18,533
  19,318
  20,152
  21,035
  21,970
  22,958
  24,003
  25,106
  26,269
  27,497
  28,790
  30,153
  31,589
  33,100
  34,691
  36,365
  38,126
  39,979
Total liabilities and equity, $m
  33,417
  34,186
  35,065
  36,051
  37,144
  38,343
  39,649
  41,062
  42,586
  44,220
  45,968
  47,834
  49,820
  51,931
  54,172
  56,545
  59,059
  61,715
  64,524
  67,489
  70,616
  73,916
  77,393
  81,057
  84,916
  88,979
  93,255
  97,755
  102,489
  107,470
Debt-to-equity ratio
  1.150
  1.160
  1.170
  1.190
  1.200
  1.220
  1.230
  1.250
  1.260
  1.280
  1.300
  1.310
  1.330
  1.340
  1.360
  1.370
  1.380
  1.400
  1.410
  1.420
  1.430
  1.440
  1.460
  1.470
  1.480
  1.490
  1.490
  1.500
  1.510
  1.520
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
  519
  566
  620
  680
  746
  819
  897
  982
  1,074
  1,172
  2,986
  3,097
  3,216
  3,342
  3,476
  3,617
  3,767
  3,925
  4,093
  4,269
  4,455
  4,652
  4,859
  5,077
  5,306
  5,548
  5,802
  6,070
  6,352
  6,648
Depreciation, amort., depletion, $m
  3,513
  3,540
  3,571
  3,605
  3,644
  3,686
  3,732
  3,781
  3,835
  3,892
  1,612
  1,677
  1,747
  1,821
  1,900
  1,983
  2,071
  2,164
  2,263
  2,367
  2,476
  2,592
  2,714
  2,842
  2,978
  3,120
  3,270
  3,428
  3,594
  3,769
Funds from operations, $m
  4,032
  4,106
  4,191
  4,285
  4,390
  4,505
  4,629
  4,764
  4,908
  5,064
  4,598
  4,775
  4,963
  5,163
  5,375
  5,600
  5,838
  6,089
  6,355
  6,636
  6,932
  7,244
  7,573
  7,919
  8,284
  8,668
  9,073
  9,498
  9,946
  10,416
Change in working capital, $m
  42
  49
  56
  63
  70
  77
  83
  90
  97
  104
  112
  119
  127
  135
  143
  152
  160
  170
  179
  189
  200
  211
  222
  234
  246
  259
  273
  287
  302
  318
Cash from operations, $m
  3,990
  4,057
  4,135
  4,222
  4,320
  4,428
  4,546
  4,673
  4,811
  4,959
  4,486
  4,655
  4,836
  5,028
  5,232
  5,448
  5,677
  5,920
  6,176
  6,446
  6,732
  7,033
  7,351
  7,685
  8,038
  8,409
  8,799
  9,211
  9,643
  10,098
Maintenance CAPEX, $m
  -1,148
  -1,172
  -1,199
  -1,230
  -1,264
  -1,302
  -1,345
  -1,390
  -1,440
  -1,493
  -1,551
  -1,612
  -1,677
  -1,747
  -1,821
  -1,900
  -1,983
  -2,071
  -2,164
  -2,263
  -2,367
  -2,476
  -2,592
  -2,714
  -2,842
  -2,978
  -3,120
  -3,270
  -3,428
  -3,594
New CAPEX, $m
  -294
  -340
  -388
  -436
  -483
  -530
  -577
  -625
  -673
  -722
  -773
  -824
  -878
  -933
  -990
  -1,049
  -1,110
  -1,174
  -1,241
  -1,310
  -1,382
  -1,458
  -1,536
  -1,619
  -1,705
  -1,795
  -1,889
  -1,988
  -2,092
  -2,200
Cash from investing activities, $m
  -1,442
  -1,512
  -1,587
  -1,666
  -1,747
  -1,832
  -1,922
  -2,015
  -2,113
  -2,215
  -2,324
  -2,436
  -2,555
  -2,680
  -2,811
  -2,949
  -3,093
  -3,245
  -3,405
  -3,573
  -3,749
  -3,934
  -4,128
  -4,333
  -4,547
  -4,773
  -5,009
  -5,258
  -5,520
  -5,794
Free cash flow, $m
  2,547
  2,545
  2,548
  2,557
  2,573
  2,596
  2,624
  2,658
  2,698
  2,744
  2,163
  2,219
  2,281
  2,348
  2,421
  2,500
  2,584
  2,675
  2,771
  2,874
  2,983
  3,099
  3,222
  3,352
  3,490
  3,636
  3,790
  3,952
  4,123
  4,304
Issuance/(repayment) of debt, $m
  418
  483
  552
  619
  686
  753
  820
  888
  956
  1,026
  1,098
  1,172
  1,247
  1,326
  1,407
  1,491
  1,578
  1,669
  1,763
  1,862
  1,965
  2,072
  2,184
  2,301
  2,423
  2,552
  2,686
  2,826
  2,973
  3,127
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  
  418
  483
  552
  619
  686
  753
  820
  888
  956
  1,026
  1,098
  1,172
  1,247
  1,326
  1,407
  1,491
  1,578
  1,669
  1,763
  1,862
  1,965
  2,072
  2,184
  2,301
  2,423
  2,552
  2,686
  2,826
  2,973
  3,127
Total cash flow (excl. dividends), $m
  2,965
  3,028
  3,099
  3,176
  3,259
  3,349
  3,444
  3,546
  3,655
  3,770
  3,261
  3,391
  3,528
  3,674
  3,828
  3,991
  4,162
  4,344
  4,534
  4,736
  4,948
  5,171
  5,406
  5,653
  5,914
  6,187
  6,475
  6,778
  7,097
  7,431
Retained Cash Flow (-), $m
  -264
  -286
  -327
  -367
  -407
  -446
  -486
  -526
  -566
  -608
  -650
  -694
  -739
  -785
  -833
  -883
  -935
  -989
  -1,045
  -1,103
  -1,164
  -1,227
  -1,294
  -1,363
  -1,436
  -1,511
  -1,591
  -1,674
  -1,761
  -1,852
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
  2,701
  2,742
  2,772
  2,809
  2,853
  2,903
  2,958
  3,020
  3,088
  3,162
  2,610
  2,697
  2,790
  2,889
  2,995
  3,108
  3,228
  3,355
  3,490
  3,633
  3,784
  3,944
  4,112
  4,290
  4,478
  4,676
  4,885
  5,104
  5,335
  5,579
Discount rate, %
  8.10
  8.51
  8.93
  9.38
  9.85
  10.34
  10.85
  11.40
  11.97
  12.57
  13.19
  13.85
  14.55
  15.27
  16.04
  16.84
  17.68
  18.57
  19.49
  20.47
  21.49
  22.57
  23.69
  24.88
  26.12
  27.43
  28.80
  30.24
  31.75
  33.34
PV of cash for distribution, $m
  2,499
  2,329
  2,145
  1,963
  1,784
  1,609
  1,438
  1,274
  1,117
  968
  668
  568
  477
  395
  322
  258
  203
  156
  118
  88
  63
  45
  31
  21
  14
  9
  5
  3
  2
  1
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 N.V. (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 $11434 million for the last fiscal year's total revenue generated by Mylan N.V.. The default revenue input number comes from 0001 income statement of Mylan N.V.. 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 8.1%, whose default value for MYL is calculated based on our internal credit rating of Mylan N.V., 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 N.V..
    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 87.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $-1 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 N.V..

Corporate tax rate of 27% is the nominal tax rate for Mylan N.V.. 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 126.6%.

Life of production assets of 12.6 years is the average useful life of capital assets used in Mylan N.V. 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 18.3%. 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 - $12167.1 million for Mylan N.V. - 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 515.842 million for Mylan N.V. 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 N.V. at the current share price and the inputted number of shares is $10.6 billion.

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