PDLI value trap - adjusted EBITDA multiple
PDL Biopharma, Inc. (NASD:PDLI) is being recommended by a number of reputable value investors. And while the current trading multiples may look enticing, we estimate the 2017 forward EBITDA multiple to be around 16 times. The LTM trailing P/E multiple of around 2 times should not be the only reason for investing in this stock.