Lateral Capital Management, Inc.

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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.