What Is Pallas Pharma Worth? A Comparables Analysis
Finance
easy40 min0 submissionsFlipkart
Scenario
Pallas Pharma (specialty pharma, US) is preparing for a sale process. You have been asked to establish a valuation range using trading comparables.
The company. Revenue of $163 M, EBITDA margin of 28% (EBITDA of $46 M), revenue growth of 22%, and net debt of $121 M.
Trading comparables.
| Peer | EV/EBITDA | Revenue growth | EBITDA margin |
|---|---|---|---|
| Peer A — same sector, 3× larger | 11.2× | 12% | 28% |
| Peer B — adjacent sector, high growth | 12.2× | 36% | 14% |
| Peer C — same sector, declining | 6.2× | 3% | 18% |
The banker running the process has proposed simply averaging the three multiples.
Supporting data
target
- ebitda m
- 46
- revenue m
- 163
- net debt m
- 121
- ebitda margin pct
- 28
- revenue growth pct
- 22
comparables
| peer | ev ebitda | growth pct | margin pct |
|---|---|---|---|
| A | 11.2 | 12 | 28 |
| B | 12.2 | 36 | 14 |
| C | 6.2 | 3 | 18 |
Your task
Produce a valuation range. Provide:
- Analysis — which comparables you would use and why, and the resulting enterprise and equity values.
- Risks — where this methodology could mislead.
- Recommendation — your valuation range and the number you would take to the seller.
Critique the banker's proposed approach.
Ready to move forward? Up next: What Is Amber Grid Worth? A Comparables AnalysisNext question
How you'll be graded
100 points, 60% to pass.
- adjustments20
- peer selection25
- recommendation30
- multiple analysis25
Hint
Reveal suggested structure
- Screen the peers on growth, margin and risk — not sector label alone.
- Apply the defensible multiple range to EBITDA to get enterprise value.
- Bridge to equity value: EV − net debt.
- Adjust for size, growth differential and marketability.
- Cross-check with EV/Revenue.
- Present a range, and say where in it you would settle.