MYL - Embedded Expectations Analysis - 2018 12 03
Mylan N.V. (MYL:USA) currently trades well below corporate averages relative toUAFRS-based (Uniform) Earnings, with a 10.2x Uniform P/E. At these levels, the market is pricing in expectations for the firm to see profitability fall to near historically low levels, but management's confidence in their ability to improve their product mix, capture market share, and lower costs suggest this is overly bearish. As such,
longer-term outperformance is likely warranted
Specifically, management generated an excitement marker when saying that they will continue to differentiate MYL by leveraging their platform size and adding more complex products to their portfolio over the long term. Additionally, they are confident in their ability to continue to capture market share, and that they will further reduce their overall G&A cost through their integration initiatives
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.