* Note: Prices are in Million (M) USD.
Description:
Viatris Inc. is an American global healthcare company headquartered in Canonsburg, Pennsylvania.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $735 M
Debt : $14,039 M
EBITDA : $4,217 M
Net Debt (Debt - Cash): $13,304 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Healthcare
Industry: Drug Manufacturers-Specialty & Generic
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 3.81
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $1,910 M
Average Revenue: $9,033 M
Revenue Converted To Free Cash FLow(%): 21%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 53.56%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $14,739 M
Revenue 4 Years Ago (2020-12-31): $11,946 M
Last 5 Years Average Revenue Growth: 5%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $1,193 M
Share Count 5 Years Ago (2020-12-31): $601 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.37
Trailing 12-Month Earnings Per Share (EPS): $2.25
Average Earnings Per Share (EPS): $2.31
Dividend Per Share (DPS): $0
Payout Ratio: 21%
Dividend Yield: 5%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 5%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $9
52-Week Low: $7
Threshold Price (15% Above 52-Week Low): $8
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $10,939 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 22 points to above Viatris Inc (VTRS) stock.
Last 5 Years Avg PE (Limited to last 5 years of EPS data) 5, Fair Value PE 15, Industry Based PE is 12 and Growth based PE is 10. Based on these all values average assigned is 10.50.
Value-Trades has assined P/E value 10.50. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.31.
The fair value of Viatris Inc (VTRS) stock should be (10.50 x $2.31) = $24.26
