Could be true, but no.
As you said a couple of posts down (up?
), MYX share price before the Teva announcement was some $1.40, after the announcement it quickly goes to $2. That's a 42% jump in both share price as well as the equivalent enterprise value.
i.e before Teva, MYX has some 810m shares. At $1.40 that's ev of $1.134B.
After Teva it has some 1.5b shares. That's ev of $1.5b. or 32% gain on the $1.40 share price at the current $1 price.[/QUOTE
Yes - and what is your point . After the Teva actuation its EV was 1.5 X1.40 . Now it is 1.5x1 so we acquire the business 40% cheaper if we buy today
What was earnings devided by EV then and now . The point is the EV has fallen as the SP has fallen, not exactly rocket science and with it the PE has contracted signficantly post acquisition, and by 50% from the post acquisition SP peak . The focus on EV without looking at PE is a little odd when discussing valuation
