Pershing Square Activist Presentation Deck
Valuation
Assuming Valeant achieves "Floor" 2016 EBITDA guidance of $7.5bn, the
stock is inexpensive as a multiple of 2016 EPS
$7.5bn of EBITDA translates into ~$15.50 of Cash EPS(1)
► At the Oct. 29 closing share price of $111.50, Valeant trades at ~7x this
estimate of 2016 Cash EPS
Conservatively assuming all of Philidor's sales were lost and not replaced
through another channel, the stock is still inexpensive
▸ Eliminating Philidor's earnings contribution would result in a reduction
of Valeant's "floor" 2016 EBITDA to ~$7.0bn, or ~$14 of Cash EPS(²)
▸ At the Oct. 29 closing share price of $111.50, Valeant trades at ~8x this
alternate estimate of 2016 Cash EPS
(1): Assumes $300mm depreciation and stock based compensation, 5% tax rate, 351mm shares, ~$1.5bn of interest expense.
(2): Philidor EBITA contribution assumed to be 7%, equal to EBITA contributed in Q3 2015 per management presentation.
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