ALC

On the numbers as presented, Alcon is a textbook high-quality compounder: FY2010 revenue of $7.18B grew +10.5% atop an unbroken climb from $5.60B in FY2007, and it converts that revenue with rare efficiency — 76.7% gross margin, 34.5% operating margin, 30.8% net margin, and a 30.5% return on equity. The balance sheet is fortress-grade: zero long-term debt, only $62M current debt, $2.52B cash, $7.25B equity, and a 3.4x current ratio ($6.07B current assets vs. $1.79B current liabilities). It funds $747M of R&D, pays a ~$1.04B dividend, and generates $2.38B of operating cash against just $309M of capex. A company like this at a stated 8.9x P/E and 4.4x sales would normally be an easy buy.

The problem is the data, not the business. Every fundamental is tagged FY2010, yet the price ($64.68), share count, and market cap are 2026 figures — and the only filing referenced is a 2026 SD (conflict-minerals) disclosure, which carries no financials. The headline 8.9x P/E divides today's price by sixteen-year-old EPS of $7.27; the 4.4x P/S does the same to FY2010 revenue. Both ratios are therefore meaningless as a present-day valuation. The pre-2011 Alcon was acquired by Novartis and later re-listed; FY2010 results describe a different corporate entity than the share trading today.