MYL - Embedded Expectations Analysis - 2018 03 07
ï€ Mylan N.V. (MYL:USA) currently trades below corporate averages relative toUAFRS-based (Uniform) Earnings, with an 11.7x Uniform P/E. At these levels, the market is pricing in fairly bearish expectations for the firm, which likely supports longer-term outperformance should MYL just maintain profitability at projected
2017-2018 levels despite management's negative sentiment
ï€ Specifically, management may lack confidence in their ability to offset competitive market dynamics in the U.S through positive volume growth and significant contributions from new product launches, and may be exaggerating their overall satisfaction with their business performance in 2017. Furthermore, they may be concerned about their North American results, and may also be concerned about their ability to strengthen their ARV franchise in the U.S. That said, market expectations are for Uniform ROA to fall to levels not seen since 2007. At these valuations, should the firm maintain Uniform ROA at current levels, equity upside is likely warranted
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