Comparable Transaction Analysis Exercise Company Share price Shares outstanding Revenue EBITDA Target Roche Wyeth Net income...

 

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Comparable Transaction Analysis Exercise Company Share price Shares outstanding Revenue EBITDA Target Roche Wyeth Net income Net debt Comparable transactions Schering-Plough Genzyme Eli Lilly $50.00 Mean 1b $20b $6.5b $5b $1b Acquirer Genentech Pfizer Merck Sanofi Implied Eli share price Is Eli overvalued based on comps? Offer value [Sb) $47 $68 $41 $20 Premium Paid 19.0% 18.0% 23.0% 23.0% 20.8% TV / Revenue 2.00 3.00 1.50 2.50 2.25 Lilly TV / EBITDA 8.00 12.00 11.00 13.00 11.00 Offer price /EPS 16.00 20.00 16.00 18.00 17.50 Comparable Transaction Analysis Exercise Company Share price Shares outstanding Revenue EBITDA Target Roche Wyeth Net income Net debt Comparable transactions Schering-Plough Genzyme Eli Lilly $50.00 Mean 1b $20b $6.5b $5b $1b Acquirer Genentech Pfizer Merck Sanofi Implied Eli share price Is Eli overvalued based on comps? Offer value [Sb) $47 $68 $41 $20 Premium Paid 19.0% 18.0% 23.0% 23.0% 20.8% TV / Revenue 2.00 3.00 1.50 2.50 2.25 Lilly TV / EBITDA 8.00 12.00 11.00 13.00 11.00 Offer price /EPS 16.00 20.00 16.00 18.00 17.50

Answer rating: 100% (QA)

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