DCF Tool

HALO

Halozyme Therapeutics Inc. – Biological Product (except Diagnostic) Manufacturing
Halozyme is a biopharmaceutical company focused on bringing disruptive solutions to significantly improve patient experiences and outcomes for emerging and established therapies. Halozyme advises and supports its biopharmaceutical partners in key aspects of new drug development with the goal of improving patients' lives while helping its partners achieve global commercial success. Halozyme's proprietary enzyme rHuPH20 forms the basis of the ENHANZE® technology and is used to facilitate the delivery of injected drugs and fluids, potentially reducing the treatment burden of other drugs to patients. Halozyme has licensed its ENHANZE® technology to leading pharmaceutical and biotechnology companies including Roche, Baxalta, Pfizer, Janssen, AbbVie, Lilly, Bristol-Myers Squibb, Alexion, argenx and Horizon Therapeutics. Halozyme derives revenues from these collaborations in the form of milestones and royalties as the Company's partners make progress developing and commercializing their products being developed with ENHANZE®. Halozyme is headquartered in San Diego.
Analysis Results
Intrinsic Value $150.31
Latest Price $57.85
Relative Value 62% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 37.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 37.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.393 0.366
2023 0.539 0.468
2024 0.739 0.597
2025 1.01 0.762
2026 1.39 0.973
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 26.3 billion. This corresponds to a present value of 17.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.17 billion. Adding in the terminal value gives a total present value of 20.3 billion.

There are presently 135.0 million outstanding shares, so the intrinsic value per share is 150.31.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 926,287,000
Current Cash 740,922,000
Current Liabilities 117,147,000
Current Debt 89,419,000
Non-Cash Working Capital (NCWC) 157,637,000
Change in NCWC -4,957,000
EBIT 275,902,000
Tax Provision -154,192,000
Depreciation and Amortization 2,997,000
Capital Expenditure -1,457,000
Unlevered Free Cash Flow 272,485,000
Current Assets 554,764,000
Current Cash 368,013,000
Current Liabilities 421,385,000
Current Debt 397,228,000
Non-Cash Working Capital (NCWC) 162,594,000
Change in NCWC 106,515,000
EBIT 144,255,000
Tax Provision 217,000
Depreciation and Amortization 3,284,000
Capital Expenditure -2,504,000
Unlevered Free Cash Flow 251,307,905
Current Assets 543,436,000
Current Cash 421,262,000
Current Liabilities 85,637,000
Current Debt 19,542,000
Non-Cash Working Capital (NCWC) 56,079,000
Change in NCWC 40,611,000
EBIT -67,610,000
Tax Provision -11,000
Depreciation and Amortization 4,068,000
Capital Expenditure -4,040,000
Unlevered Free Cash Flow -26,971,000
Current Assets 427,849,000
Current Cash 354,526,000
Current Liabilities 149,361,000
Current Debt 91,506,000
Non-Cash Working Capital (NCWC) 15,468,000
Change in NCWC 28,427,000
EBIT -69,330,000
Tax Provision 537,000
Depreciation and Amortization 2,388,000
Capital Expenditure -4,663,000
Unlevered Free Cash Flow -43,178,000
Current Assets 510,372,000
Current Cash 469,214,000
Current Liabilities 131,328,000
Current Debt 77,211,000
Non-Cash Working Capital (NCWC) -12,959,000
Change in NCWC -27,318,000
EBIT 81,002,000
Tax Provision -1,361,000
Depreciation and Amortization 2,161,000
Capital Expenditure -1,350,000
Unlevered Free Cash Flow 54,495,000
Current Assets 256,532,000
Current Cash 204,981,000
Current Liabilities 54,585,000
Current Debt 17,393,000
Non-Cash Working Capital (NCWC) 14,359,000
Change in NCWC -8,479,000
EBIT -83,210,000
Tax Provision 1,162,000
Depreciation and Amortization 2,410,000
Capital Expenditure -3,137,000
Unlevered Free Cash Flow -92,416,000
Current Assets 171,772,000
Current Cash 108,339,000
Current Liabilities 62,457,000
Current Debt 21,862,000
Non-Cash Working Capital (NCWC) 22,838,000
Change in NCWC 21,471,000
EBIT -27,452,000
Tax Provision 0
Depreciation and Amortization 1,677,000
Capital Expenditure -2,360,000
Unlevered Free Cash Flow -6,664,000
Current Assets 161,321,000
Current Cash 135,623,000
Current Liabilities 24,331,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,367,000
Change in NCWC 3,127,282
EBIT -63,036,000
Tax Provision 0
Depreciation and Amortization 1,762,000
Capital Expenditure -1,368,000
Unlevered Free Cash Flow -59,514,718
Current Assets 95,195,394
Current Cash 71,502,644
Current Liabilities 25,453,032
Current Debt 0
Non-Cash Working Capital (NCWC) -1,760,282
Change in NCWC -13,940,800
EBIT -80,433,637
Tax Provision 0
Depreciation and Amortization 1,226,927
Capital Expenditure -2,297,518
Unlevered Free Cash Flow -95,445,028
Current Assets 131,027,935
Current Cash 99,901,264
Current Liabilities 18,946,153
Current Debt 0
Non-Cash Working Capital (NCWC) 12,180,518
Change in NCWC 18,320,388
EBIT -53,625,446
Tax Provision 0
Depreciation and Amortization 1,079,424
Capital Expenditure -1,412,585
Unlevered Free Cash Flow -35,638,219

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