VALEANT PHARMACEUTICALS INTL VRX.
May 12, 2017 - 3:59pm EST by
torico780
2017 2018
Price: 13.66 EPS 6.0 0
Shares Out. (in M): 341 P/E 2.3 0
Market Cap (in $M): 4,800 P/FCF 2.61 0
Net Debt (in $M): 0 EBIT 0 0
TEV ($): 32,141 TEV/EBIT TEV / EBITDA: 10X 0

Sign up for free guest access to view investment idea with a 45 days delay.

  • 6 bagger in 14 years
  • You do the work
  • Downvote
  • Shady

Description

Recently got long Valeant. 

This is one of the most hated companies around. 

Read all the short ideas on here for background and context. Then look at latest quarterly earnings, then look at FCF numbers then sit on your rear end and wait. 

It is misleading to just look at TEV to EBIT or EBITDA because on a leveraged basis the company generates between 1.5 and 2 bn in cash if not more so it is trading at 2x FCF which makes the equity an option in a situation which is beginning to normalize.  

With this FCF it can pay off its debt in 14 years and that is a 6 bagger in 14 years which makes it a 13 pct return and that is with nothing positive happening. Someone should actually just buy this thing. 


 

 


 

 

I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise hold a material investment in the issuer's securities.

Catalyst

Earnings beat last quarter will have people looking at this again on the long side. 

    sort by    
      Back to top