Pharmaceutical Industry Fletcher Leung Analyst Investment Analysis Group February 15‚ 2002 Presentation Agenda • Industry Overview: Research Based Pharmaceuticals • Pfizer – Company Specifics – Performance – Growth Drivers • Valuation – Comparables Analysis – DCF • Recommendation February 15‚ 2002 Page 2 Investment Analysis Group 1 Industry Overview Economic •Cost Effective Demographic Sociocultural •Aging Population •Quality of Life General Environment
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support your recommendation. As you prepare this report‚ you may find that you would like to have more field information than what the case offers you. However‚ the case contains critical information that gives you a reasonable basis to compute its valuation. In addition use the following information for 1995.1 Sales ($ millions) Redhook Pete’s BBC 25.89 59.17 151.31 EPS .75 .25 .40 Book value/share 7.70 4.33 3.00 Price 27.00 24.75 ? Also‚ use the following information for BBC for 1996. Make additional
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Automobile Valuation Predictions Actual Current Price $ 76 P/E Valuation (Ordinary) $ 131.38 P/E Valuation (Segment Adjusted) $ 119.46 PEG Valuation $ 153.5 M/B Valuation $ 66.58 EBO (Abnormal Earnings) Valuation $ 43.97 DCF Valuation $ 84.71 Performance of HMC 52 week change of HMC Return on S&P 500 8.1% -16.8% Investment Summary • We assign a rating of market outperform on Honda Motor Company at its current price of $76 and a 12-month target price of $85 (based on DCF valuation). • Comparative
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Acquisition of Consolidated Rail – Case Study 1. Background Info - Conrail 1.1. Formed from the remains of the six bankrupt North-eastern railroads in 1973 1.2. Earned its first profit in 1981- $39.2m on revenues of $4.2bn. Privatised through an IPO in 1987 1.3. Major player in North-eastern cities and their connection with major Mid-western hubs 1.4. In 1995‚ had 23‚510 employees‚ operated 10‚701 miles of track and controlled 29.4% of the eastern rail freight market 1.5. Financial indicators-
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Gillette should receive closer to $60/share‚ and while an offer of $54.05 is a deal that is not as good as it could be‚ it is better than no deal at all. Using transaction multiples‚ we see that Gillette is being valued well above the market in valuations involving revenues‚ EBITDA and P/E multiples. Also‚ large benefits come to shareholders in the method of acquisition. Although it is an all-stock deal‚ shareholders are receiving a nearly 1-for-1 ratio of trade for the shares. However‚ P&G
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000 A . Assume annual cash flows are expected to remain at the $800‚000 level after Year 5 (i.e.‚ Year 6 and thereafter). If TecOne investors want a 40 percent rate of return on their investment‚ calculate the venture’s present value. Answer: DCF PV = -$50‚000/1.4 + -$20‚000/1.42 + $100‚000/1.43 + $400‚000/1.44 +
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Arundel Partners: The Sequel Project The maximum per-film price for the sequel rights that Arundel Partners should pay is $5.12M. If Arundel Partners were to use the traditional DCF methods to find the value of the sequel rights‚ the NPV would be -$8.42M loss per-film (see Appendix 1). Calculation Details We assume that Arundel Partners will purchase a portfolio of films similar to one used in the analysis. The average hypothetical net inflow of the sequel ($21.57M) is used to figure out the value
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FOREIGN DIRECT INVESTMENT (FDI) Under the Foreign Direct Investments (FDI) Scheme‚ investments can be made in shares‚ mandatorily and fully convertible debentures and mandatorily and fully convertible preference shares1 of an Indian company by non-residents through two routes: • Automatic Route: Under the Automatic Route‚ the foreign investor or the Indian company does not require any approval from the Reserve Bank or Government of India for the investment. • Government Route: Under
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Molson Coors Alcoholic Beverages Industry‚ Team 1 Leah Black Professor Shaked‚ FE449 12:30PM Section Industry Information -Make sure to add info about craft beer -Shift away from beer and towards liquor Key Industry Drivers For beer‚ wine and liquor‚ demand from wholesalers is very important. Companies in this industry must work closely with wholesalers to properly promote their product and ensure shelf space at liquor stores. An issue that arises with wholesaling is state restrictions
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outstanding Genentech shares‚ in the article was mentioned that some (cost reductions) efficiencies could be achieve by Roche by itself after the analysis 4) Based on DCF valuation techniques‚ what range of values is reasonable for Genentech as a stand-alone company in June 2008? Please exclude synergies from your valuation and use a 9% WACC. You can assume that at the end of June 2008‚ Genentech held approximately USD 9 billion in cash‚ which included investments and securities that were not
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