DCF Tool

INVA

Innoviva Inc – Pharmaceutical Preparation Manufacturing
Innoviva, Inc. is a healthcare focused asset management company. The Company intends to participate in the development, commercialization and financial management of bio-pharmaceuticals. Innoviva operates in the United States.
Analysis Results
Intrinsic Value $413.23
Latest Price $13.14
Relative Value 97% undervalued
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Cash Flow (Millions)
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 19.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.1%, 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 (million) Present value (million)
2023 469 456
2024 559 528
2025 666 612
2026 794 709
2027 946 821
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 28400 million. This corresponds to a present value of 23900 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3130 million. Adding in the terminal value gives a total present value of 27100 million.

There are presently 65.5 million outstanding shares, so the intrinsic value per share is 413.23.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 443,511,000
Current Cash 291,049,000
Current Liabilities 134,968,000
Current Debt 96,193,000
Non-Cash Working Capital (NCWC) 113,687,000
Change in NCWC 7,346,000
EBIT 212,576,000
Tax Provision 66,687,000
Depreciation and Amortization 13,931,000
Capital Expenditure -67,000
Unlevered Free Cash Flow 184,383,298
Current Assets 313,673,000
Current Cash 201,525,000
Current Liabilities 5,807,000
Current Debt 0
Non-Cash Working Capital (NCWC) 106,341,000
Change in NCWC 16,880,000
EBIT 375,103,000
Tax Provision 76,439,000
Depreciation and Amortization 13,832,000
Capital Expenditure 0
Unlevered Free Cash Flow 341,422,357
Current Assets 342,058,000
Current Cash 246,487,000
Current Liabilities 6,110,000
Current Debt 0
Non-Cash Working Capital (NCWC) 89,461,000
Change in NCWC 14,443,000
EBIT 321,123,000
Tax Provision 60,431,000
Depreciation and Amortization 13,840,000
Capital Expenditure -13,000
Unlevered Free Cash Flow 294,612,314
Current Assets 431,234,000
Current Cash 350,845,000
Current Liabilities 5,371,000
Current Debt 0
Non-Cash Working Capital (NCWC) 75,018,000
Change in NCWC -3,417,000
EBIT 246,360,000
Tax Provision 41,902,000
Depreciation and Amortization 13,874,000
Capital Expenditure -12,000
Unlevered Free Cash Flow 212,480,404
Current Assets 199,043,000
Current Cash 114,908,000
Current Liabilities 5,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 78,435,000
Change in NCWC 16,883,000
EBIT 240,951,000
Tax Provision -196,073,000
Depreciation and Amortization 13,872,000
Capital Expenditure 0
Unlevered Free Cash Flow 271,706,000
Current Assets 200,369,000
Current Cash 129,075,000
Current Liabilities 34,742,000
Current Debt 25,000,000
Non-Cash Working Capital (NCWC) 61,552,000
Change in NCWC 26,236,000
EBIT 183,604,000
Tax Provision 0
Depreciation and Amortization 13,982,000
Capital Expenditure 0
Unlevered Free Cash Flow 223,822,000
Current Assets 198,046,000
Current Cash 150,433,000
Current Liabilities 20,049,000
Current Debt 7,752,000
Non-Cash Working Capital (NCWC) 35,316,000
Change in NCWC 21,765,000
EBIT 108,988,000
Tax Provision 0
Depreciation and Amortization 13,954,000
Capital Expenditure -278,000
Unlevered Free Cash Flow 144,429,000
Current Assets 214,325,000
Current Cash 187,283,000
Current Liabilities 13,491,000
Current Debt 0
Non-Cash Working Capital (NCWC) 13,551,000
Change in NCWC 15,623,000
EBIT 31,580,000
Tax Provision 0
Depreciation and Amortization 13,933,000
Capital Expenditure -7,000
Unlevered Free Cash Flow 61,129,000
Current Assets 252,182,000
Current Cash 240,498,000
Current Liabilities 13,756,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,072,000
Change in NCWC 64,259,000
EBIT -33,929,000
Tax Provision 0
Depreciation and Amortization 12,175,000
Capital Expenditure -689,000
Unlevered Free Cash Flow 41,816,000
Current Assets 483,198,000
Current Cash 465,125,000
Current Liabilities 84,404,000
Current Debt 0
Non-Cash Working Capital (NCWC) -66,331,000
Change in NCWC -49,009,000
EBIT -168,863,000
Tax Provision 0
Depreciation and Amortization 8,203,000
Capital Expenditure -87,734,000
Unlevered Free Cash Flow -297,403,000
Current Assets 261,133,000
Current Cash 248,489,000
Current Liabilities 29,966,000
Current Debt 0
Non-Cash Working Capital (NCWC) -17,322,000
Change in NCWC 24,257,000
EBIT -12,999,000
Tax Provision 0
Depreciation and Amortization 7,326,000
Capital Expenditure -2,590,000
Unlevered Free Cash Flow 15,994,000

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