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Viatris Inc – Investment Advice
Viatris Inc. is a new kind of healthcare company, empowering people worldwide to live healthier at every stage of life. It provides access to medicines, advance sustainable operations, develop innovative solutions and leverage its collective expertise to connect more people to more products and services through its one-of-a-kind Global Healthcare GatewayTM. Formed in November 2020through the combination of Mylan and Pfizer's Upjohn business, Viatris brings together scientific, manufacturing and distribution expertise with proven regulatory, medical and commercial capabilities to deliver high-quality medicines to patients in more than 165 countries and territories. Viatris' portfolio comprises more than 1,400 approved molecules across a wide range of therapeutic areas, spanning both non-communicable and infectious diseases, including globally recognized brands, complex generic and branded medicines, a growing portfolio of biosimilars and a variety of over-the-counter consumer products. With a global workforce of approximately 45,000, Viatris is headquartered in the U.S., with global centers in Pittsburgh, Shanghaiand Hyderabad, India.
Analysis Results
Intrinsic Value $118.32
Latest Price $10.77
Relative Value 91% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 11.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 3.47 3.33
2023 3.87 3.55
2024 4.31 3.79
2025 4.81 4.05
2026 5.36 4.33
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 161 billion. This corresponds to a present value of 124 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 19.1 billion. Adding in the terminal value gives a total present value of 143 billion.

There are presently 1.21 billion outstanding shares, so the intrinsic value per share is 118.32.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 10,902,900,000
Current Cash 790,400,000
Current Liabilities 9,884,400,000
Current Debt 3,370,500,000
Non-Cash Working Capital (NCWC) 3,598,600,000
Change in NCWC -1,186,100,000
EBIT 233,300,000
Tax Provision 604,700,000
Depreciation and Amortization 4,506,500,000
Capital Expenditure -457,200,000
Unlevered Free Cash Flow 3,096,500,000
Current Assets 12,867,500,000
Current Cash 929,300,000
Current Liabilities 10,562,900,000
Current Debt 3,409,400,000
Non-Cash Working Capital (NCWC) 4,784,700,000
Change in NCWC 2,629,800,000
EBIT -103,000,000
Tax Provision -51,300,000
Depreciation and Amortization 2,216,100,000
Capital Expenditure -243,000,000
Unlevered Free Cash Flow 4,499,900,000
Current Assets 6,757,300,000
Current Cash 541,400,000
Current Liabilities 5,569,100,000
Current Debt 1,508,100,000
Non-Cash Working Capital (NCWC) 2,154,900,000
Change in NCWC 118,900,000
EBIT 632,000,000
Tax Provision 137,600,000
Depreciation and Amortization 2,019,300,000
Capital Expenditure -213,200,000
Unlevered Free Cash Flow 1,993,766,839
Current Assets 6,367,700,000
Current Cash 445,600,000
Current Liabilities 4,587,800,000
Current Debt 701,700,000
Non-Cash Working Capital (NCWC) 2,036,000,000
Change in NCWC -278,600,000
EBIT 777,400,000
Tax Provision -54,100,000
Depreciation and Amortization 2,109,900,000
Capital Expenditure -1,195,600,000
Unlevered Free Cash Flow 1,413,100,000
Current Assets 7,213,300,000
Current Cash 368,800,000
Current Liabilities 6,385,300,000
Current Debt 1,855,400,000
Non-Cash Working Capital (NCWC) 2,314,600,000
Change in NCWC 578,900,000
EBIT 1,323,800,000
Tax Provision 207,000,000
Depreciation and Amortization 1,805,800,000
Capital Expenditure -275,900,000
Unlevered Free Cash Flow 3,129,137,541
Current Assets 7,522,500,000
Current Cash 1,082,500,000
Current Liabilities 5,040,700,000
Current Debt 336,400,000
Non-Cash Working Capital (NCWC) 1,735,700,000
Change in NCWC -457,100,000
EBIT 1,261,300,000
Tax Provision -358,300,000
Depreciation and Amortization 1,523,000,000
Capital Expenditure -390,400,000
Unlevered Free Cash Flow 1,936,800,000
Current Assets 6,472,700,000
Current Cash 1,236,000,000
Current Liabilities 4,122,200,000
Current Debt 1,078,300,000
Non-Cash Working Capital (NCWC) 2,192,800,000
Change in NCWC -1,868,000,000
EBIT 1,363,500,000
Tax Provision 67,700,000
Depreciation and Amortization 1,032,100,000
Capital Expenditure -362,900,000
Unlevered Free Cash Flow 63,859,984
Current Assets 6,786,900,000
Current Cash 225,500,000
Current Liabilities 5,305,700,000
Current Debt 2,805,100,000
Non-Cash Working Capital (NCWC) 4,060,800,000
Change in NCWC 2,393,470,000
EBIT 1,229,500,000
Tax Provision 41,400,000
Depreciation and Amortization 566,600,000
Capital Expenditure -325,300,000
Unlevered Free Cash Flow 3,812,036,752
Current Assets 4,471,260,000
Current Cash 291,293,000
Current Liabilities 2,956,070,000
Current Debt 443,433,000
Non-Cash Working Capital (NCWC) 1,667,330,000
Change in NCWC -88,950,000
EBIT 1,120,891,000
Tax Provision 120,808,000
Depreciation and Amortization 515,997,000
Capital Expenditure -334,580,000
Unlevered Free Cash Flow 1,032,165,236
Current Assets 3,902,717,000
Current Cash 349,969,000
Current Liabilities 2,193,503,000
Current Debt 397,035,000
Non-Cash Working Capital (NCWC) 1,756,280,000
Change in NCWC 336,666,000
EBIT 1,089,416,000
Tax Provision 161,145,000
Depreciation and Amortization 546,604,000
Capital Expenditure -305,325,000
Unlevered Free Cash Flow 1,449,031,779

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