WebMD Cuts Through Our Fair Value Estimate; Falls Almost 30% Today
publication date: Jan 10, 2012
WebMD surprised investors this morning. The company said it is no longer 'for sale', disclosed that its CEO had resigned, and warned that 2012 profits would disappoint. Our discounted cash-flow process had identified a buy-out premium in the shares, and we had been expecting a significant move lower into the high $20s based on our fair value estimate. We think WebMD's shares are fairly valued after the move.
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