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market value sir! Answer all the questions 1. The following table presents financial data from 2018 annual reports of six pharmaceuticals companies. The market value
market value sir!
Answer all the questions 1. The following table presents financial data from 2018 annual reports of six pharmaceuticals companies. The market value of equity for five companies is also given. All numbers are in millions of dollars. Novartis had a book value of $1,349 million in 2017. In addition, Novartis had 4,900 million shares outstanding throughout the year. Company Sales revenue R&D Net Income Acme Aspen Pharma Pfizer Aus Pharma Sanofi Novartis Market value of Price/Book equity $8,096.71 5.6 1,379.00 3.6 2,233.60 4.6 925.00 2.5 588.53 4.5 ? 2 $1,571.0 152.0 413.0 138.0 151.0 795.4 $307.0 101.0 158.0 109.0 81.0 314.3 $406.0 15.0 28.0 7.0 34.0 124.4 Using these numbers: a) Calculate relevant multiples. b) Estimate a value for Novartis. c) What should be the value per share of Novartis? If the stock of Novartis is now traded at $1.10 (per share), should you buy this stock? [6 marks) [2 marks] [2 marks] Step by Step Solution
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