Corporate Finance of Teva Pharmaceuticals Plc ltd †Free Samples

Question: Discuss about the Corporate Finance of Teva Pharmaceuticals Plc ltd. Answer: Company overview: Teva pharmaceuticals plc ltd is operating as pharmaceutical company. This company offers medicine of the pain, oncology, respiratory, central nervous system, urology therapy areas etc. It serves to many customers all over the world. This company is a global pharmaceutical firm which specializes in production, development and marketing of proprietary and generic branded pharmaceuticals (Teva Pharmaceuticals Industries limited, 2017). This company operates its business in North Wales, Pennsylvania. This company has many subsidiary companies to operate the activities of the company such as marketing activity. Finance activity etc. Future Growth/trends: (morning star, 2017) The above picture depicts the growth of the company. It has been analyzed through this analysis over the growth of the company that with one year average and 3 year average, the growth of the company has been enhanced in 2016 but if 5 year and 10 year average is considered than the growth rate of the company is not so attractive. Analysis over operating income depict that in 2016, the income has been reduced on a great level that depict that the income of the company has been reduced on a great level. The 3 year and 5 year average of the company depict that that in 2014 and 2015 the income of the company has enhanced but in 2016, it has been reduced. EPS of the company depict that the company has faced many issues in 2016. Changes in the company: Through a research report, it has been analyzed that many challenges has been faced by Teva pharmaceuticals. And due to these challenges, company had to make many changes in the operations as well as activities. The top executive team has been changed by the company to plan and implement new strategies so that the company could save itself from losses even in the critical situation. Due to price pressure over the pharmaceutical company, it has been analyzed that the company has suffered a great loss and thus the company made some changes in the operations as well. P/E ratio review: (morning star, 2017) The above table depict that the price earnings ratio of the company. It has been found that the current price earnings ratio of the company is 451. The 5 year average price earnings ratio of the company is 25 whereas the industry average is 25.9 and SP 500 is 21.2. It depicts that the P/E ratio of the company is not compatible with P/E ratio of the industry. It depict that companys share price is not according to the industry share price. Dividends: (morning star, 2017) The above table depict that the dividend offered by the company is 0.3400. Dividend is the amount which is offered by the company to the shareholder from the total profit of the company. On 02/13/2017 company has announced the dividend of 0.3400 for the shareholders. It has been analyzed that in 2016, the dividend offered by the company was 1.36 and in 2015, it was 1.37 which shows that the dividend of the company is getting lower day by day. References: Morningstar. (2017). Teva Pharmaceuticals Industries limited. Retrieved as on 3 May 2017 https://www.morningstar.com/stocks/XNYS/TEVA/quote.html Morningstar. (2017). Teva Pharmaceuticals Industries limited. Retrieved as on 3 May 2017 https://financials.morningstar.com/valuation/price-ratio.html?t=TEVA Morningstar. (2017). Teva Pharmaceuticals Industries limited. Retrieved as on 3 May 2017 https://financials.morningstar.com/ratios/r.html?t=TEVAregion=USAculture=en_US Teva Pharmaceuticals Industries limited. (2017). About. Retrieved as on 3 May 2017 https://www.tevapharm.com/about/