Elanco Animal Health Incorporated (ELAN) Company Bio
Elanco Animal Health Incorporated operates as an animal health care company. The Company develops, manufactures, and markets products for companion and food animals. Elanco Animal Health serves clients worldwide. The company is based in Greenfield, Indiana.
ELAN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ELAN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Elanco Animal Health Inc ranked in the 13th 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 Elanco Animal Health Inc ended up being:
Elanco Animal Health Inc's effective tax rate, as measured by taxes paid relative to net income, is at 42 -- greater than 93.25% of US stocks with positive free cash flow.
Elanco Animal Health Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.05. This coverage rate is greater than that of just 19.9% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 10. This value is greater than 78.43% stocks in the Healthcare sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Elanco Animal Health Inc? See BSX, TECH, LMNX, PCRX, and TEVA.
Elanco Animal Health (ELAN) announces its first business restructuring just two months following the closing of its acquisition of Bayer Animal Health. As part of this effort, the company intends to eliminate more than 900 positions across nearly 40 countries. "Today’s actions will reduce duplication and increase efficiency within our...
So far, I have written three articles of this “type,” as I usually don’t sell stocks (or, to put it differently: I try to buy stocks which I won’t need to sell for a long time). But in the fall of 2019, I sold Cal-Maine Foods (CALM) as well as...
Daniel Schönberger on Seeking Alpha | September 10, 2020
Elanco Animal Health Incorporated (ELAN) delivered earnings and revenue surprises of 350.00% and 5.48%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?