Oriola - Specialist in pharmaceutical and health product wholesale

[tj_hodl]

@Rauli_Juva

You could calculate it that way, but that 192 MEUR includes sold accounts receivable; the reported net debt is clearly negative. So, in our EV, we use the reported net debt. Admittedly, there’s a slight contradiction in that my DCF and SOTP models take the sold receivables into account, but the EV doesn’t. This is mainly because the EV then follows the same formula as others under our coverage. The value of the associate company “should” be deducted, since its earnings impact only appears below EBIT. So, EV/EBIT tries to describe the valuation of Oriola’s own operations.

Yeah, my point there was mainly that the current EV/EBIT multiples don’t provide any value to the investor, whether they’re right or wrong, which is why I would suggest a different calculation method. Although it’s not a major issue if you read the report carefully and investigate things more thoroughly in general. Or if you’re already familiar with the company. EV/EBIT and ROIC/ROI are usually the first figures I glance at when looking into a new company.