maz

Why I Passed On the Tyco Spinoffs

I agree that the Covidien valuation misses the mark. Also with spin-offs there is a lot of extra expenses & capex that tend to be short term (one to two years) in nature. Using the pro forma statements will usually result in a lower base FCF and it takes time to go thru and estimate "normalized" figures.

COV - $54 in a range of $45 to $61
TEL - $42 in a range of $35 to $48
TYC - $49 in a range of $42 to $57