Stock Analysis on Net

Allergan Inc. (NYSE:AGN.)

$22.49

This company has been moved to the archive! The financial data has not been updated since February 19, 2015.


The Company Profile

Basic information about Allergan Inc.


Financial Statements

Income Statement

The income statement (statement of earnings) reports on the performance of Allergan Inc., the result of its operating activities.

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of Allergan Inc. during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Allergan Inc..

Balance Sheet: Liabilities and Stockholders’ Equity

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Cash Flow Statement

The cash flow statement provides information about Allergan Inc. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Allergan Inc. balance sheet.


Common-Size Financial Statements

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.


Analysis of Financial Ratios

Analysis of Liquidity Ratios

Measures the adequacy of Allergan Inc. cash resources to meet its near-term cash obligations.

Analysis of Solvency Ratios 

Examines Allergan Inc. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the Allergan Inc. assets. Operating performance ratios describe the relationship between the Allergan Inc. level of operations and the assets needed to sustain operating activities.

Analysis of Reportable Segments

Allergan Inc. operates in 2 segments: Specialty pharmaceuticals and Medical devices.


Relative Valuation

Common Stock Valuation Ratios 

Relative valuation technique determine the value of Allergan Inc. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

Enterprise Value (EV) 

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

Enterprise Value to EBITDA (EV/EBITDA) 

To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.

Enterprise Value to FCFF (EV/FCFF)

Free cash flow to the firm is the cash flow available to the Allergan Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

Price to FCFE (P/FCFE)

Free cash flow to equity is the cash flow available to Allergan Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.


Discounted Cash Flow (DCF) Valuation

Capital Asset Pricing Model (CAPM) 

CAPM is a theory concentrated with deriving the expected rates of return on risky assets based on the assets’ systematic risk levels. Systematic risk is the variability of returns that is due to macroeconomic factors that affect all risky assets. It cannot be eliminated by diversification.

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Allergan Inc. common stock issue as the present value of all future dividends.

Present Value of Free Cash Flow to Equity (FCFE)

The FCFE valuation approach estimates the value of equity as the present value of future FCFE discounted at the required rate of return on equity.


Analysis of Components of Financial Statements


Financial Reporting Quality

Aggregate Accruals

Financial reporting quality relates to the accuracy with which Allergan Inc. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of Allergan Inc. earnings.