Herbalife Ltd. (HLF) – To Buy or Not to Buy?

At the current price of $43.60 per share, Herbalife is valued at 6.9x EV/EBITDA. NuSkin has a similar valuation, of nearly 7x EV multiples. Medifast seems to be the most expensively valued among the three. It is trading at $27.90 per share and valued at 10.3x EV/EBITDA. Among the three, Herbalife is paying the highest dividend yield at 3.2%. The dividend yield of Nu Skin is 1.9%, while Medifast is not paying a dividend at the moment.

Foolish Takeaway

It is not only interesting but also crucial for investors to take into consideration different views and analyses of Herbalife’s business performance. A cautious investor will need to take a closer look into each analysis to determine a reasonable course of action for himself. Herbalife’s value may seem great given its impressive historical basis. Nevertheless, I would not be too confident about it to overlook the potential risks that Bill Ackman pointed out for investors.

The article Herbalife – To Buy or Not to Buy? originally appeared on Fool.com and is written by Anh HOANG.

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