Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
38.8% above
-27.9% to fair value
ACCE score
60
out of 100
Analysts
58% buy
12 covering
1-year return
+74.6%
Dividend yield
2.60%
Viatris Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Viatris makes a broad portfolio of off-patent branded drugs, complex generics, biosimilars and over-the-counter products, sold largely in developed markets such as the US, Europe and Japan. Its structural appeal is scale in a niche that is hard to replicate: a large catalogue of legacy brands and hard-to-make generics that earn steady cash flow with limited new-drug risk. Revenue growth of 4.9% and an operating margin of 12.6% show the business is growing and profitable at the operating line, though a negative ROE of -2.8% reflects the balance sheet and past impairments and means equity holders have not yet seen that profit accrue to them. At a forward P/E of 6.6, the market is pricing in substantial skepticism, so the case rests on whether management can keep converting the portfolio into free cash flow and pay down debt. This is worth a deeper look for a value-oriented book, with the leverage, litigation exposure and generic pricing pressure as the first items to diligence.