Herbalife Ltd. (HLF)

Wholesale-Drugs, Proprietaries & Druggists' Sundries

Latest Price

$15.31

TTM P/E

9.11

Normalized P/E

7.21

TTM Div Yield

Fwd Div Yield

Book Value

P/B Ratio

Valuation metrics

Norm. op. income: $545M (median of 7yr)

Tax rate: 26%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$23.13

+51% upside

Base FCF: $223M (median of recent 5yr)

Growth: -1%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$8.20

46% downside

EPS: $2.20

Target P/E: 7×

Formula: EPS × P/E

P/E Fair Value

$15.40

+1% upside