FMP
Jun 3, 2024 4:59 PM - Davit Kirakosyan
Stericycle (NASDAQ:SRCL) shares jumped over 15% intra-day today following news of an acquisition agreement with Waste Management (NYSE:WM) valued at approximately $7.2 billion.
According to the deal, Waste Management will acquire all outstanding Stericycle shares at $62 each in cash, which includes Stericycle's net debt of around $1.4 billion.
Oppenheimer analysts noted that while healthcare services constituted only 5% of Waste Management’s 2018 customer base, the company has minimal involvement in regulated medical waste services. They added that Stericycle’s market leadership, 90% retention rate, growth potential, and logistical and disposal assets could become more attractive to Waste Management following Stericycle's recent business improvements.
BMO Capital Markets analysts remarked that acquiring Stericycle would enhance Waste Management’s solid waste and environmental service offerings. They observed that while the acquisition premium seems reasonable, the synergy target might be somewhat ambitious given the limited operational overlap between the two companies.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...