APD

The example we have provided is Air Products & Chemicals, Inc. (NYSE:APD) a basic material company that currently looks overvalued according to AFG’s default valuation model. An important fact to note is that AFG has shown it tracks Air Products & Chemicals, Inc. well (high accuracy score of 94). Also, Air Products & Chemicals, Inc. (NYSE:APD) has a current AFG Value Score of 31, meaning the company ranks in the bottom 31st percentile of companies in the AFG universe in valuation attractiveness. Companies AFG identifies as overvalued have proven through back-tests to be more likely to underperform than those companies with an attractive default AFG valuation rank.

Our thoughts on Air Products & Chemicals (NYSE:APD) unsolicited bid to acquire smaller peer, Airgas (NYSE:ARG), for $7 billion, including $1.9 billion in assumed debt, or $60 per share. We provide our analysis of the embedded sales growth each company needs to achieve to justify there current stock price as well as who is getting the better end of this potential acquisition.