Siemens and Healthineers: Valuing the IPO

1. Based on the multiples in Exhibit #3, what do you think the company is worth?
2. Would you recommend purchasing shares at the top of the planned offering range (which was close to the share price of 32.7 EUR per share, as of April 2018)?

EXHIBIT 3 Peer comparison: Operating and evaluation metrics Largest direct competitors: Abbot Laboratories, General Electric, Philips, Roche Imaging \& Adv. Therapies peers: GE, Hitachi Medical (Hitachi), Hologic, Medtronic, Neusoft, Philips, Shimadzu, Toshiba Medical (Canon) Diagnostics peers: 23 companies; Abbott Laboratories, Danaher, Roche, and Thermo Fisher Scientific have sales levels much larger than any of the other peers EU MedTech peers: 19 companies; Philips and Fresenius have sales levels much larger than the other peers US MedTech peers: 15 companies; Abbot Laboratories, Johnson \& Johnson, and Medtronic all have sales larger than the other peers Note: EV= enterprise value, P/E= price-earnings ratio, E= expected, mcap= market capitalization. Source: Deutsche Bank Markets Research report, 2018