Market Valuation: $1.2 Trillion
Ironbound Buy-Side Valuation: $700 Billion
Ironbound Assessment: California based Alphabet Inc., parent company of Google founded in 1998, is an American multinational technology company. In 2021 the company reported $257 Billion in sales and $76 Billion in profits. Our upside valuation is $2 Trillion based on the average of $200 Billion in sales over the past three years and growth continuing to exceed 10% annually. This is a reasonable expectation considering Google is at the heart of the digital economy, which continues to grow as the world rapidly shifts further online. Much of this accelerated growth can be attributed to aligning stakeholders’ together. In 2007, Google was the first major company to be carbon neutral in their operations, by 2020 they were the first major company to be carbon neutral for its entire history. Their 2030 goal is to be the first major company that runs on carbon free energy in perpetuity, and help other organizations follow in their footsteps. The biggest hurdle holding back the stock price is the 51.4% voting control by the two co-founders. The limited control prevents a sovereign wealth fund or group from acquiring the company. The current market valuation is trading at 21-times the average operating income, much higher than 14-times multiple favorable for a value driven buyer.
Market Valuation: $16 Billion
Ironbound Buy-Side Valuation: $40 Billion
Market Valuation: $25 Billion
Ironbound Buy-Side Valuation: $23 Billion
Ironbound Assessment: Seattle based Seagen Inc, founded in 1997, is a leading American biotechnology company that develops and commercializes targeted cancer therapies. Our buyout valuation fairly prices the company between $15 to $32 Billion, or approximately 10-to 20-times sales. The lofty valuation is 90% Goodwill for the rights to develop and produce TUKYSA® - a lifesaving treatment for metastatic HER-2 positive breast cancers. TUKYSA® promises a phenomenal growth opportunity; upon FDA approval in 2020 initial sales started at $120 million and skyrocketed the following year to $334 million. Merck shareholders are extremely optimistic outbidding by 25 percent our highest estimated valuation range. The $40 Billion acquisition would strategically entrench Merck further into the oncology space alongside their blockbuster Keytruda®. Indeed, Merck has greater scale capabilities to commercialize the acquisition and achieve a profitable return on investment faster than Seagen could on their own.
Market Valuation: $250 Billion
Ironbound Buy-Side Valuation: $440 Billion
Ironbound Assessment: California based Meta Inc., formerly named Facebook founded in 2004, is a multinational Social Media conglomerate focused on technologies that help people connect, find communities, and grow businesses. Meta wants all their products to share a vision of bringing the metaverse to life. Our upside valuation is $1 Trillion based on $100 Billion in sales for 2021 and continued sales growth exceeding 10% over the next few years. This is a reasonable expectation considering the company reported in 2021, Daily-active-users (DAU) just shy of 2 billion, nearly a third of the world’s population. The company has a strong societal mission, giving people the power to build communities and bring the world closer together, which will help the company continue to attract and retain top talent. Severely depressing the potential upside is the founder’s voting control, currently used to direct over $10 Billion a year to finance the buildout of a highly uncertain Metaverse. On the other hand, the limited control is helping prevent a sovereign wealth fund or group from acquiring the company for $440 Billion, or 13-times the average operating income between 2021 and 2019. At this price, the buyer(s) would acquire $100 Billion in assets and pay about 10¢ per DAU per day for 5 years, comparable to the Twitter acquisition, in Goodwill.
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