what the articles say23 Feb 2018 08:28
Summary
Shire reported better-than-expected Q4 2017 results, but also a disappointing guidance for 2018.
DCF analysis shows that Shire is undervalued by around 38% (Perpetuity Growth Method) and 40% (EBITDA Multiple Method).
Thus, with the stock trading at 8x on NTM P/E and offering an underappreciated pipeline on rebased earnings expectations, the current valuation of Shire offers a compelling entry point.
On February 14, 2018, Shire (SHPG) reported strong Q4 2017 results, thanks to a solid performance of the key growth drivers, but also a disappointing guidance for 2018.
With the stock trading at 8x on NTM P/E, I think that the current valuation of Shire is extremely attractive.