AmerisourceBergen Corporation sources and distributes pharmaceutical products to healthcare providers, pharmaceutical and biotech manufacturers, and specialty drug patients in the United States and internationally. The company was founded in 1985 and is based in Chesterbrook, Pennsylvania.
ABC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ABC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Amerisourcebergen Corp ranked in the 18th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Amerisourcebergen Corp ended up being:
Amerisourcebergen Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 23.8% of tickers in our DCF set.
ABC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 23.8% of tickers in our DCF set.
As a business, Amerisourcebergen Corp experienced a tax rate of about 0% over the past twelve months; relative to its sector (Healthcare), this tax rate is higher than only 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ABC, try DHR, ICUI, TFX, EHC, and MMSI.
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Today, AmerisourceBergen and Good Neighbor Pharmacy kicked off the first virtual ThoughtSpot, Good Neighbor Pharmacy’s annual conference and trade show, representing the organization’s continued commitment to ensuring pharmacists have the resources they need to be the pharmacy of choice in their communities, especially in this dynamic time. ThoughtSpot 2020 included a virtual general session and keynote address, more than 40 on-demand continuing education (CE
CARROLLTON, Texas--(BUSINESS WIRE)--IntrinsiQ Specialty Solutions, a part of AmerisourceBergen, today announced the launch of UroChartEHR Telehealth, a new HIPAA-compliant, virtual visit tool created in partnership with Backline by DrFirst. The solution allows urologists to quickly extend patient care beyond the traditional doctor’s office and connect with each other and with patients from any location at any time. With UroChartEHR Telehealth, urology patients now have the added convenience of
Over the past few months, large portions of my capital have been allocated to investments in the Healthcare/Pharma sector. The undervaluation of the sector in comparison to the broader market has made the companies herein more and more interesting, with available upsides in double digits based even on fairly conservative...
This article is part of a series that provides an ongoing analysis of the changes made to Larry Robbins' 13F portfolio on a quarterly basis. It is based on Robbins' regulatory 13F Form filed on 08/14/2020. Please visit our Tracking Larry Robbins' Glenview Capital Management Portfolio article for an idea...
Drug wholesaler AmerisourceBergen Corp and some of its executives and directors must face a shareholder lawsuit over its sale of unsterile chemotherapy drugs and payments of kickbacks to doctors, which have already resulted in $885 million in criminal and civil penalties, a Delaware judge has ruled.