DCF Tool

HALO

Halozyme Therapeutics Inc. – Biological Product (except Diagnostic) Manufacturing
we are a clinical-stage biotechnology company focused on developing and commercializing novel cancer therapies that target the tumor microenvironment. our lead proprietary program, investigational drug pegph20, applies a unique approach to targeting solid tumors, potentially providing increased tumor access for co-administered cancer therapies. by breaking down potential barriers to cancer, pegph20 may help make existing treatments more effective by allowing therapies to reach the tumor. we are built on a foundation of value-driving partnerships with leading pharmaceutical companies including, roche, pfizer, janssen, baxalta, abbvie and lilly, for our enhanze™ drug delivery technology platform, which enables biologics and small molecule compounds currently administered intravenously to be delivered subcutaneously. this technology may also allow for more rapid delivery of therapies that are already delivered subcutaneously. we are a diverse team, who are committed to bringing therapies
Analysis Results
Intrinsic Value $242.52
Latest Price $38.91
Relative Value 84% 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 32.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 32.0%, 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)
2023 0.487 0.46
2024 0.642 0.574
2025 0.848 0.716
2026 1.12 0.893
2027 1.48 1.11
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 39.6 billion. This corresponds to a present value of 28.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.76 billion. Adding in the terminal value gives a total present value of 32.0 billion.

There are presently 132.0 million outstanding shares, so the intrinsic value per share is 242.52.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 739,013,000
Current Cash 362,794,000
Current Liabilities 130,789,000
Current Debt 13,334,000
Non-Cash Working Capital (NCWC) 258,764,000
Change in NCWC 101,127,000
EBIT 267,531,000
Tax Provision 46,789,000
Depreciation and Amortization 49,641,000
Capital Expenditure -4,810,000
Unlevered Free Cash Flow 363,201,323
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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