Biogen Idec

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
Credit Suisse	Alethia Young	alethia.young@credit-suisse.com
HC Wainwright	Andrew S. Fein	afein@hcwresearch.com
Jefferies	Brian Abrahams	babrahams@jefferies.com
Raymond James	Christopher J. Raymond	chris.raymond@raymondjames.com
Cowen & Company	Eric Schmidt	eric.schmidt@cowen.com
Leerink Partners	Geoffrey C. Porges	geoffrey.porges@leerink.com
Wells Fargo Securities	Jim Birchenough	jim.birchenough@wellsfargo.com
William Blair	John Sonnier	jsonnier@williamblair.com
Piper Jaffray	Joshua Schimmer	joshua.e.schimmer@pjc.com
BMO Capital Markets	M. Ian Somaiya	ian.somaiya@bmo.com
Evercore ISI	Mark Schoenebaum	mark.schoenebaum@evercoreisi.com
RBC Capital Markets	Michael J. Yee	michael.yee@rbccm.com
Atlantic Equities	Steve Chesney	s.chesney@atlantic-equities.com
Stifel Nicolaus	Thomas Shrader	shradert@stifel.com
Guggenheim Securities	William Tanner	william.tanner@guggenheimpartners.com

Return to top of page

Primary Input Data

Return to top of page

Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	2,322	2,903	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	3,073	3,906	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	24	65	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	16,927	19,457	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	13.72%	14.92%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	5,431	3,213	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	233.90%	110.68%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	34.07%	32.99%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	8.63%	9.54%
Enterprise value	EV_Market	70,589	63,463	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	70,061	62,843
Long-Run Growth	g = IR x ROIC	32.08%	16.51%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	38.32%	43.81%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	14.39%	13.26%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

Return to top of page

Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	7.57	6.23	40.50%	40.98%	35.46%	34.95%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	16.92	12.33	40.50%	40.98%	35.46%	34.95%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	30.40	21.86	40.50%	40.98%	35.46%	34.95%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	22.97	16.25	40.50%	40.98%	35.46%	34.95%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	19.76	14.21	40.50%	40.98%	35.46%	34.95%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	4.17	3.26	40.50%	40.98%	35.46%	34.95%

Return to top of page