Investors deserve more diligence from fund managers, so we are putting those that don’t read SEC filings or lack the technology needed to thoroughly analyze those filings in the Danger Zone.
We found that Perrigo Company (PRGO), the firm Mr. Papa is leaving behind, exhibits many similarities to Valeant, including misleading non-GAAP measurements, aggressive, shareholder destructive acquisitions, and executive compensation misaligned with shareholders’ interests.
The fair value of a company’s total debt is the current amount the company would need to pay to retire the debt and settle the claims of the creditors. This fair value of debt is subtracted from shareholder value because the firm would need to settle these claims before it could return any cash to shareholders.