Data for two hypothetical companies in the pharmaceutical industry, DriveMed and MAT Technology, are given in the
Question:
On the basis of the information supplied, discuss the valuation of MAT Technology relative to DriveMed. Justify your conclusion.
Transcribed Image Text:
MAT Technology $78.00 Measure DriveMed Current price $46.00 Trailing CF per share $3.60 $6.00 12.8 P/CF 13.0 Trailing FCFE per share P/FCFE $5.00 $1.00 46.0 15.6 Consensus five-year growth forecast 15% 20% 1.25 1.25 Beta
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
MAT Technology is relatively undervalued compared with DriveMed on ...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
Question Posted:
Students also viewed these Business questions
-
Synygy, Inc., produces Information Production and Distribution Systems, a software program that enables the user to integrate data from different sources. This software was targeted at companies in...
-
Equillion, Inc. and Stoichran, Inc. are two companies in the pharmaceutical industry. Equillion has relatively high fixed costs related to research and development. Stoichran, however, does little...
-
Equillion, Inc., and Storis, Inc., are two companies in the pharmaceutical industry. Equillion has relatively high fixed costs related to research and development. Storis, however, does little...
-
A politician claims that the mean salary for managers in his state is more than the national mean, $85,000. Assume the the population is normally distributed and the population standard deviation is...
-
Independently consider each of the following changes in the Wyndor problem. In each case, apply the graphical method by hand to this new version of the problem, describe your conclusion, and then...
-
A sample of households that subscribe to United Bell Phone Company for landline phone service revealed the following number of calls received per household last week. Determine the mean and the...
-
P 70 Use the Standard Normal Table or technology to find the z-score that corresponds to the cumulative area or percentile. Table 4-Standard Normal Distribution Arca Z 0 Z .09 .08 .07 .06 .05 .04 .03...
-
Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below: Required: 1. Compute the cost per equivalent unit for...
-
Six months after the triple homicide patrol officers get a call of a suspicious subject at 3:00 am. The complainant observes the suspect walking down the street and disappear behind a neighbors...
-
Affordable Lawn Care, Inc., provides lawn-mowing services to both commercial and residential customers. The company performs adjusting entries on a monthly basis, whereas closing entries are prepared...
-
Define the major alternative cash flow concepts, and state one limitation of each.
-
Your value - oriented investment management fi rm recently hired a new analyst, Bob Westard, because of his expertise in the life sciences and biotechnology areas. At the firms weekly meeting, during...
-
A longitudinal standing wave is established in a tube that is open at both ends (see the drawing). The length of the tube is 0.80 m. What is the wavelength of the waves that make up the standing...
-
Youre considering an investment in Croatia that you expect will produce a 9 percent return next year, and you expect that your real rate of return on this investment will be 7 percent. What do you...
-
Suppose that 100 senators must vote on an appropriation: a new bridge in Alabama (A), a new freeway interchange in California (C), or a grain subsidy for Iowa (I). The Senate Whip estimates that the...
-
In 2019, Italia Mining Corporation had sales of \($69\) million, total assets of \($45\) million, and total liabilities of \($23\) million. The interest rate on the debt is 6.5 percent, and its tax...
-
Imagine that you got a job offer and accepted it. You were happy about your decision until you got another offerthis time from your ideal company and in your ideal location. Write responses to each...
-
Which of the following are examples of a firm experiencing positive technological change? a. A fall in the wages JetBlue pays its mechanics leads it to lower its ticket prices. b. A training program...
-
Suppose the exchange rate between the Danish krone and the U.S. dollar is 7 DKK = $1 and the exchange rate between the Chilean peso and the U.S. dollar is 650 CLP = $1. a. Express both of these...
-
Tanaka Company's cost and production data for two recent months included the following: March April Production (units).........300................600 Rent.....................$1,800............$1,800...
-
Sante Fe Corporation's sales office and manufacturing plant are located in State A. Sante Fe also maintains a manufacturing plant and sales office in State B. For purposes of apportionment, State A...
-
For each of the following items considered independently, indicate whether the circumstances call for an addition modification (A), a subtraction modification (S), or no modification (N) in computing...
-
Perk Corporation is subject to tax only in State A. Perk generated the following income and deductions. Federal taxable income .............. $300,000 State A income tax expense ............. 15,000...
-
A horizontal board of negligible thickness and area 4.0 m hangs from a spring scale that reads 60 N when a 2.0 m/s wind moves below the board. The air above the board is stationary. When the wind...
-
The only force acting on a 2.2 kg body as it moves along the positive x axis has an x component Fx = -5x N, where x is in meters. The velocity of the body at x = 2.5 m is 9.0 m/s. (a) What is the...
-
Use conservation of energy to determine the angular speed of the spool shown in the figure below after the 3.00-kg bucket has fallen 3.70 m, starting from rest. The light string attached to the...
Study smarter with the SolutionInn App