* 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 : $975 M
Debt : $14,544 M
EBITDA : $-599 M
Net Debt (Debt - Cash): $13,569 M
Since Ebitda is less than 0, 0 points assigned.
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:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $1,150 M
Average Revenue: $9,031 M
Revenue Converted To Free Cash Flow (%): 12.7%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $14,739 M
Revenue 5 Years Ago (2019-12-31): $11,501 M
Total Growth over 5 Years: 28.2%
5-Year Revenue CAGR (Historical): 5.1%
Forward 5-Year CAGR (Tapered): 4.6%
Since historical Revenue CAGR is between 5 - 10, 2 points 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): $0.00
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 2.99%
EPS is non-positive; payout ratio not meaningful. 0 point assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 5.3%
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: $15.92
52-Week Low: $6.60
Threshold Price (15% Above 52-Week Low): $7.59
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: $18,448 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.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-09-30): $1.34
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $1.66
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 13 points to above Viatris Inc (VTRS) stock.
Last 1 Years Avg PE 6.96, Fair Value PE 12, Industry Based PE 12, Growth Based PE 15, RCFC Based PE 12.73, ROE Based PE 5.26, Risk-Free Anchored PE (25% MoS) 17.81. Based on these 7 values, average assigned is 11.68. The fair value of Viatris Inc (VTRS) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
