Prestige Consumer (PBH:NYS) Fundamental Valuation Report



Fundamental Valuation Report

Prestige Consumer(PBH:NYS)

Healthcare:Medical Distribution

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$30.30 (USD) 14/05/2019

Weighted Valuation
$28.45 (USD)

Overall Rating
Overvalued by 6.1%

Valuation Models Analyst Consensus: $31.00 (USD)
(in order of importance) Comparables: $24.63 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (PBH:NYS USD)

Price 30.30
Range 30.10 – 30.84
52 week 26.79 – 41.29
Open 30.17
Vol / Avg. 493028/450727
Mkt cap 1.57B
P/E 25.30
Div/yield 0.00/0.00
EPS -0.69
Shares 51.8M
Beta 0.96

Company Description

Prestige Consumer Healthcare Inc, formerly Prestige Brands distributes branded over-the-counter healthcare and household cleaning products to mass merchandisers, drug stores, convenience stores, and supermarkets. The firm’s major brands include Chloraseptic, Clear Eyes, Compound W, Dramamine, and Comet. Prestige Brands operates in three segments: North American over-the-counter, or OTC healthcare; international over-the-counter healthcare; and household cleaning. The North American OTC segment generates the vast majority of revenue. The largest product groups in the OTC healthcare segments include analgesics, cough and cold, gastrointestinal, and women’s health. It has customers in the United States, Canada, and Australia. Sales within the United States contribute the majority of revenue.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for PBH:NYS

Using a discounted cash flow model we generated an intrinsic value of $60.77 (USD) for PBH:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

PBH:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $60.77 1% 5% 1% 5%
WACC (or Ke) 9.67 $76.56 $49.09
Terminal Growth Rate 3.00 $50.44 $74.74
Tax Rate 0.06 $65.68 $55.85
Cash Flow 375,923,628 $56.09 $65.45
Capital Expenditures -7,045,800 $60.69 $60.84
Long Term Debt 1,479,663,000 $62.19 $59.34

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $17.81 (USD) for PBH:NYS. We also generated a valuation of $24.63 (USD) using other metrics and comparables.
The comparable companies were and Patterson Companies (PDCO:NAS).

Company PBH:NYS End Date Value
Earnings/Share ($0.69) (USD)
Book Value/Share $23.81 (USD)
Sales/Share $18.80 (USD)
Cash Flow/Share $3.66 (USD)
EBITDA/Share $1.90 (USD)
Price Based on Comps Adjustment Factor (%)
($18.16) (USD) 7.4
$33.68 (USD) -18.6
$6.90 (USD) 0.0
$0.04 (USD) -44.8
$23.12 (USD) 14.4
PBH:NYS Ratios Used Average Values PDCO:NAS
23.92 PE Ratio 26.31 26.31
1.24 PB Ratio 1.41 1.41
1.57 PS Ratio 0.37 0.37
8.04 PCF Ratio 9.45 9.45
14.71 EV to EBITDA 12.16 12.16

Multiples

Using a multiples approach we generated a valuation of  $56.09 (USD) for PBH:NYS

Company PBH:NYS End Date Value
Earnings/Share ($0.69) (USD)
Book Value/Share $23.81 (USD)
Sales/Share $18.80 (USD)
Cash Flow/Share $3.66 (USD)
EBITDA/Share $1.90 (USD)
Price Based on Comps Adjustment Factor
$0.00 (USD) 0
$80.59 (USD) 0
$58.03 (USD) 0
$54.80 (USD) 0
$30.93 (USD) 0
Ratios Ratio Average
PE Ratio 27.79
PB Ratio 3.39
PS Ratio 3.09
PCF Ratio 14.97
EV to EBITDA 16.27

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  PBH:NYS for the last 10 years was  3.34

We ran the Adjusted Book Value for  PBH:NYS and generated a book value of  $21.16 (USD)
By multiplying these we get an adjusted valuation of  $70.66 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for PBH:NYS. The 1 analysts have a concensus valuation for PBH:NYS for 2020 of $31.00 (USD).

PBH:NYS Prestige Consumer

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
0 1 0 3.0000 Hold 2019-5-13

Current Price: 30.3 USD

Analyst Consensus
USD Millions 2020 2021
Mean EPS 2.80 3.02
# EPS Analysts 1 1
Mean Revenue 956.10 965.70
# Revenue Analysts 1 1
Mean Target Price 31.00
Mean Cash Flow 4.07 4.09
Mean EBITDA 342.20 348.00
Mean Net Income 148.90 157.40
Mean Debt Outstanding
Mean Tax Rate 26.00 26.00
Mean Growth Rate 6.00
Mean Capital Expenditure 14.30 14.50

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.
The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).
The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.
With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.
If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


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