Elanco Animal Health Incorporated

ELAN

HealthcareDrug Manufacturers - Specialty & GenericNYSE

$21.72

Market Cap: $10.85B

Elanco Animal Health Incorporated (ELAN) Valuation Summary

Updated Apr 6, 2026 22:25

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$0.00 – $10.62	$1.51	-93.4%
Growth Exit 10Y	$0.00 – $11.00	$2.13	-90.6%
EBITDA Exit 5Y	$3.46 – $13.21	$7.93	-65.2%
EBITDA Exit 10Y	$2.19 – $11.70	$6.26	-72.6%
▸ Trading Multiples
P/E	—	N/A	—
EV/EBITDA	$5.80 – $19.56	$13.87	-39.2%
EV/Revenue	$14.12 – $34.92	$22.90	+0.4%
▸ PEG
PEG Fair Value	—	N/A	—
▸ Earnings Power Value
Earnings Power Value	—	N/A	—
▸ Dividend Discount
Dividend Discount	—	N/A	—

Valuation History

DCF Analysis

Fair Value

$1.51

Market Price

$21.72

Upside / Downside

-93.0%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Elanco Animal Health Incorporated's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 6.1% to 3.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 78, DPO 50, DIO 227). At a 8.2% WACC with mid-year discounting, the terminal value (79% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $1.51 per share, suggesting ELAN is overvalued by 93.0% at the current price of $21.72.

FCFF Present Value Calculation

WACC

8.16%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	35	37	39	41	42	44
(−) Net Interest	299	315	331	346	358	367
(+) D&A	192	194	202	217	236	242
EBITDA	526	547	572	604	637	653

(−) Tax	11	11	12	13	13	13
(−) CapEx	210	221	232	242	251	257
(−) ΔWC	125	130	126	124	98	101
Free Cash Flow (FCFF)	180	184	202	226	274	281

Terminal Value						4,967
WACC / Discount Rate	8.2%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	174	164	166	171	193	3,355

Enterprise Value	4,222
Projection Period	867	20.5%
Terminal Value	3,355	79.5%

(−) Current Net Debt	3,472

Equity Value	750
(/) Outstanding Shares	496

Fair Price	$1.51

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.2%	$4	$5	$6	$8	$11
7.2%	$2	$3	$3	$4	$6
8.2%	$0	$1	$2	$2	$3
9.2%	$0	$0	$0	$1	$1
10.2%	$0	$0	$0	$0	$0

Current price: $21.72. Green = undervalued, Red = overvalued.

Fair Value

$2.13

Market Price

$21.72

Upside / Downside

-90.2%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Elanco Animal Health Incorporated's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 6.1% to 2.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 78, DPO 50, DIO 227). At a 8.2% WACC with mid-year discounting, the terminal value (60% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $2.13 per share, suggesting ELAN is overvalued by 90.2% at the current price of $21.72.

FCFF Present Value Calculation

WACC

8.16%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	35	37	39	41	42	43	43	44	44	45	47
(−) Net Interest	299	315	331	346	358	359	362	367	374	383	393
(+) D&A	192	194	202	217	236	231	239	246	251	255	261
EBITDA	526	547	572	604	637	633	645	657	670	684	701

(−) Tax	11	11	12	13	13	13	13	13	14	14	14
(−) CapEx	210	221	232	242	251	252	254	257	262	269	275
(−) ΔWC	125	130	126	124	98	8	24	40	57	75	77
Free Cash Flow (FCFF)	180	184	202	226	274	360	354	346	337	327	335

Terminal Value											5,913
WACC / Discount Rate	8.2%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	174	164	166	171	193	234	212	192	173	155	2,698

Enterprise Value	4,531
Projection Period	1,833	40.5%
Terminal Value	2,698	59.5%

(−) Current Net Debt	3,472

Equity Value	1,059
(/) Outstanding Shares	496

Fair Price	$2.13

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.2%	$5	$6	$7	$9	$11
7.2%	$3	$3	$4	$5	$6
8.2%	$1	$2	$2	$3	$3
9.2%	$0	$0	$1	$1	$1
10.2%	$0	$0	$0	$0	$0

Current price: $21.72. Green = undervalued, Red = overvalued.

Fair Value

$7.93

Market Price

$21.72

Upside / Downside

-63.5%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Elanco Animal Health Incorporated's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 6.1% to 3.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 78, DPO 50, DIO 227). At a 8.2% WACC with mid-year discounting, the terminal value (88% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $7.93 per share, suggesting ELAN is overvalued by 63.5% at the current price of $21.72.

FCFF Present Value Calculation

WACC

8.16%

3% – 20%

EV/EBITDA Exit Multiple

14.84x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	35	37	39	41	42	44
(−) Net Interest	299	315	331	346	358	367
(+) D&A	192	194	202	217	236	242
EBITDA	526	547	572	604	637	653

(−) Tax	11	11	12	13	13	—
(−) CapEx	210	221	232	242	251	—
(−) ΔWC	125	130	126	124	98	—
Free Cash Flow (FCF)	180	184	202	226	274	—

Peers' EBITDA Multiple						14.8x
Terminal Value						9,685
WACC / Discount Rate	8.16%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	174	164	166	171	193	6,543

Enterprise Value	7,410
Projection Period	867	11.7%
Terminal Value	6,543	88.3%

(−) Current Net Debt	3,472
Equity Value	3,938
(÷) Outstanding Shares	496M
Fair Price	$8	-63.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	10.8x	12.8x	14.8x	16.8x	18.8x
6.2%	$5	$7	$9	$11	$13
7.2%	$5	$7	$9	$10	$12
8.2%	$4	$6	$8	$10	$11
9.2%	$4	$6	$7	$9	$11
10.2%	$3	$5	$7	$8	$10

Current price: $21.72. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$6.26

Market Price

$21.72

Upside / Downside

-71.2%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Elanco Animal Health Incorporated's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 6.1% to 2.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 78, DPO 50, DIO 227). At a 8.2% WACC with mid-year discounting, the terminal value (72% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $6.26 per share, suggesting ELAN is overvalued by 71.2% at the current price of $21.72.

FCFF Present Value Calculation

WACC

8.16%

3% – 20%

EV/EBITDA Exit Multiple

14.84x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	35	37	39	41	42	43	43	44	44	45	47
(−) Net Interest	299	315	331	346	358	359	362	367	374	383	393
(+) D&A	192	194	202	217	236	231	239	246	251	255	261
EBITDA	526	547	572	604	637	633	645	657	670	684	701

(−) Tax	11	11	12	13	13	13	13	13	14	14	—
(−) CapEx	210	221	232	242	251	252	254	257	262	269	—
(−) ΔWC	125	130	126	124	98	8	24	40	57	75	—
Free Cash Flow (FCF)	180	184	202	226	274	360	354	346	337	327	—

Peers' EBITDA Multiple											14.8x
Terminal Value											10,402
WACC / Discount Rate	8.16%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	174	164	166	171	193	234	212	192	173	155	4,746

Enterprise Value	6,580
Projection Period	1,833	27.9%
Terminal Value	4,746	72.1%

(−) Current Net Debt	3,472
Equity Value	3,108
(÷) Outstanding Shares	496M
Fair Price	$6	-71.2%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	10.8x	12.8x	14.8x	16.8x	18.8x
6.2%	$5	$7	$9	$10	$12
7.2%	$5	$6	$7	$9	$10
8.2%	$4	$5	$6	$8	$9
9.2%	$3	$4	$5	$6	$8
10.2%	$2	$3	$4	$5	$6

Current price: $21.72. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$13.97

Market Price

$21.72

Upside / Downside

-35.7%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Elanco Animal Health Incorporated (ELAN) has a fair value of $13.97 based on 7 comparable companies in the Drug Manufacturers - Specialty & Generic industry.

EV/EBITDA Valuation — Drug Manufacturers - Specialty & Generic

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Elanco Animal Health IncorporatedELAN	10,782	21.1x	19.7x
Neurocrine Biosciences, Inc.NBIX	13,296	19.5x	16.2x
Align Technology, Inc.ALGN	12,332	14.8x	14.9x
The Ensign Group, Inc.ENSG	11,505	26.7x	31.7x
Solventum CorporationSOLV	10,973	5.9x	6.0x
Encompass Health CorporationEHC	10,580	9.4x	9.4x
Revvity, Inc.RVTY	9,874	18.8x	18.0x
Qiagen N.V.QGEN	8,408	12.9x	12.1x
Industry Median		14.8x	14.9x
(*) EBITDA		676	724
= Enterprise Value		10,033	10,782
(-) Net Debt		3,472	3,472
Equity Value		6,561	7,310
(/) Outstanding shares		496	496
Fair Price		$13	$15

Selected Fair Value (avg of trailing + forward)

$13.97

-35.7%

Fair Value

$23.05

Market Price

$21.72

Upside / Downside

+6.1%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Elanco Animal Health Incorporated (ELAN) has a fair value of $23.05 based on 8 comparable companies in the Drug Manufacturers - Specialty & Generic industry.

EV/Revenue Valuation — Drug Manufacturers - Specialty & Generic

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Elanco Animal Health IncorporatedELAN	10,782	3.0x	2.8x
Viatris Inc.VTRS	15,445	2.0x	2.0x
Neurocrine Biosciences, Inc.NBIX	13,296	4.5x	3.8x
Align Technology, Inc.ALGN	12,332	2.8x	2.8x
The Ensign Group, Inc.ENSG	11,505	3.0x	3.6x
Solventum CorporationSOLV	10,973	1.8x	1.8x
Encompass Health CorporationEHC	10,580	2.2x	2.2x
Revvity, Inc.RVTY	9,874	4.4x	4.2x
Qiagen N.V.QGEN	8,408	4.4x	4.2x
Industry Median		2.9x	3.2x
(*) Revenue		4,715	5,050
= Enterprise Value		13,706	16,126
(-) Net Debt		3,472	3,472
Equity Value		10,234	12,654
(/) Outstanding shares		496	496
Fair Price		$21	$25

Selected Fair Value (avg of trailing + forward)

$23.05

+6.1%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Growth Exit 5Y

$0.00 – $10.62

$1.51

-93.4%

Growth Exit 10Y

$0.00 – $11.00

$2.13

-90.6%

EBITDA Exit 5Y

$3.46 – $13.21

$7.93

-65.2%

EBITDA Exit 10Y

$2.19 – $11.70

$6.26

-72.6%

▸ Trading Multiples

P/E

—

N/A

—

EV/EBITDA

$5.80 – $19.56

$13.87

-39.2%

EV/Revenue

$14.12 – $34.92

$22.90

+0.4%

▸ PEG

PEG Fair Value

—

N/A

—

▸ Earnings Power Value

Earnings Power Value

—

N/A

—

▸ Dividend Discount

Dividend Discount

—

N/A

—

DCF Analysis

Fair Value

$1.51

Market Price

$21.72

Upside / Downside

-93.0%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

8.16%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	35	37	39	41	42	44
(−) Net Interest	299	315	331	346	358	367
(+) D&A	192	194	202	217	236	242
EBITDA	526	547	572	604	637	653

(−) Tax	11	11	12	13	13	13
(−) CapEx	210	221	232	242	251	257
(−) ΔWC	125	130	126	124	98	101
Free Cash Flow (FCFF)	180	184	202	226	274	281

Terminal Value						4,967
WACC / Discount Rate	8.2%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	174	164	166	171	193	3,355

Enterprise Value	4,222
Projection Period	867	20.5%
Terminal Value	3,355	79.5%

(−) Current Net Debt	3,472

Equity Value	750
(/) Outstanding Shares	496

Fair Price	$1.51

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.2%	$4	$5	$6	$8	$11
7.2%	$2	$3	$3	$4	$6
8.2%	$0	$1	$2	$2	$3
9.2%	$0	$0	$0	$1	$1
10.2%	$0	$0	$0	$0	$0

Current price: $21.72. Green = undervalued, Red = overvalued.

Fair Value

$2.13

Market Price

$21.72

Upside / Downside

-90.2%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

8.16%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	35	37	39	41	42	43	43	44	44	45	47
(−) Net Interest	299	315	331	346	358	359	362	367	374	383	393
(+) D&A	192	194	202	217	236	231	239	246	251	255	261
EBITDA	526	547	572	604	637	633	645	657	670	684	701

(−) Tax	11	11	12	13	13	13	13	13	14	14	14
(−) CapEx	210	221	232	242	251	252	254	257	262	269	275
(−) ΔWC	125	130	126	124	98	8	24	40	57	75	77
Free Cash Flow (FCFF)	180	184	202	226	274	360	354	346	337	327	335

Terminal Value											5,913
WACC / Discount Rate	8.2%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	174	164	166	171	193	234	212	192	173	155	2,698

Enterprise Value	4,531
Projection Period	1,833	40.5%
Terminal Value	2,698	59.5%

(−) Current Net Debt	3,472

Equity Value	1,059
(/) Outstanding Shares	496

Fair Price	$2.13

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.2%	$5	$6	$7	$9	$11
7.2%	$3	$3	$4	$5	$6
8.2%	$1	$2	$2	$3	$3
9.2%	$0	$0	$1	$1	$1
10.2%	$0	$0	$0	$0	$0

Current price: $21.72. Green = undervalued, Red = overvalued.

Fair Value

$7.93

Market Price

$21.72

Upside / Downside

-63.5%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Elanco Animal Health Incorporated's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 6.1% to 3.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 78, DPO 50, DIO 227). At a 8.2% WACC with mid-year discounting, the terminal value (88% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $7.93 per share, suggesting ELAN is overvalued by 63.5% at the current price of $21.72.

FCFF Present Value Calculation

WACC

8.16%

3% – 20%

EV/EBITDA Exit Multiple

14.84x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	35	37	39	41	42	44
(−) Net Interest	299	315	331	346	358	367
(+) D&A	192	194	202	217	236	242
EBITDA	526	547	572	604	637	653

(−) Tax	11	11	12	13	13	—
(−) CapEx	210	221	232	242	251	—
(−) ΔWC	125	130	126	124	98	—
Free Cash Flow (FCF)	180	184	202	226	274	—

Peers' EBITDA Multiple						14.8x
Terminal Value						9,685
WACC / Discount Rate	8.16%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	174	164	166	171	193	6,543

Enterprise Value	7,410
Projection Period	867	11.7%
Terminal Value	6,543	88.3%

(−) Current Net Debt	3,472
Equity Value	3,938
(÷) Outstanding Shares	496M
Fair Price	$8	-63.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	10.8x	12.8x	14.8x	16.8x	18.8x
6.2%	$5	$7	$9	$11	$13
7.2%	$5	$7	$9	$10	$12
8.2%	$4	$6	$8	$10	$11
9.2%	$4	$6	$7	$9	$11
10.2%	$3	$5	$7	$8	$10

Current price: $21.72. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$6.26

Market Price

$21.72

Upside / Downside

-71.2%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Elanco Animal Health Incorporated's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 6.1% to 2.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 78, DPO 50, DIO 227). At a 8.2% WACC with mid-year discounting, the terminal value (72% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $6.26 per share, suggesting ELAN is overvalued by 71.2% at the current price of $21.72.

FCFF Present Value Calculation

WACC

8.16%

3% – 20%

EV/EBITDA Exit Multiple

14.84x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	35	37	39	41	42	43	43	44	44	45	47
(−) Net Interest	299	315	331	346	358	359	362	367	374	383	393
(+) D&A	192	194	202	217	236	231	239	246	251	255	261
EBITDA	526	547	572	604	637	633	645	657	670	684	701

(−) Tax	11	11	12	13	13	13	13	13	14	14	—
(−) CapEx	210	221	232	242	251	252	254	257	262	269	—
(−) ΔWC	125	130	126	124	98	8	24	40	57	75	—
Free Cash Flow (FCF)	180	184	202	226	274	360	354	346	337	327	—

Peers' EBITDA Multiple											14.8x
Terminal Value											10,402
WACC / Discount Rate	8.16%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	174	164	166	171	193	234	212	192	173	155	4,746

Enterprise Value	6,580
Projection Period	1,833	27.9%
Terminal Value	4,746	72.1%

(−) Current Net Debt	3,472
Equity Value	3,108
(÷) Outstanding Shares	496M
Fair Price	$6	-71.2%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	10.8x	12.8x	14.8x	16.8x	18.8x
6.2%	$5	$7	$9	$10	$12
7.2%	$5	$6	$7	$9	$10
8.2%	$4	$5	$6	$8	$9
9.2%	$3	$4	$5	$6	$8
10.2%	$2	$3	$4	$5	$6

Current price: $21.72. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$13.97

Market Price

$21.72

Upside / Downside

-35.7%

Verdict

Overvalued

EV/EBITDA Valuation — Drug Manufacturers - Specialty & Generic

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Elanco Animal Health IncorporatedELAN	10,782	21.1x	19.7x
Neurocrine Biosciences, Inc.NBIX	13,296	19.5x	16.2x
Align Technology, Inc.ALGN	12,332	14.8x	14.9x
The Ensign Group, Inc.ENSG	11,505	26.7x	31.7x
Solventum CorporationSOLV	10,973	5.9x	6.0x
Encompass Health CorporationEHC	10,580	9.4x	9.4x
Revvity, Inc.RVTY	9,874	18.8x	18.0x
Qiagen N.V.QGEN	8,408	12.9x	12.1x
Industry Median		14.8x	14.9x
(*) EBITDA		676	724
= Enterprise Value		10,033	10,782
(-) Net Debt		3,472	3,472
Equity Value		6,561	7,310
(/) Outstanding shares		496	496
Fair Price		$13	$15

Selected Fair Value (avg of trailing + forward)

$13.97

-35.7%