DCF Tool

LGND

Ligand Pharmaceuticals, Inc. – Pharmaceutical Preparation Manufacturing
Ligand Pharmaceuticals is a biopharmaceutical company located in San Diego, California. Founded in 1987 as Progenx Inc., the company went public in 1992.
Analysis Results
Intrinsic Value $903.51
Latest Price $80.20
Relative Value 91% 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 51.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 51.9%, 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 0.308 0.28
2023 0.467 0.388
2024 0.71 0.536
2025 1.08 0.742
2026 1.64 1.03
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 21.5 billion. This corresponds to a present value of 12.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.97 billion. Adding in the terminal value gives a total present value of 15.3 billion.

There are presently 16.9 million outstanding shares, so the intrinsic value per share is 903.51.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 464,751,000
Current Cash 341,108,000
Current Liabilities 41,665,000
Current Debt 46,000
Non-Cash Working Capital (NCWC) 82,024,000
Change in NCWC 86,169,000
EBIT 78,895,000
Tax Provision -9,840,000
Depreciation and Amortization 51,071,000
Capital Expenditure -8,761,000
Unlevered Free Cash Flow 207,374,000
Current Assets 500,559,000
Current Cash 411,186,000
Current Liabilities 100,111,000
Current Debt 6,593,000
Non-Cash Working Capital (NCWC) -4,145,000
Change in NCWC -99,256,000
EBIT 8,731,000
Tax Provision -7,553,000
Depreciation and Amortization 25,691,000
Capital Expenditure -4,458,000
Unlevered Free Cash Flow -69,292,000
Current Assets 1,123,645,000
Current Cash 1,011,532,000
Current Liabilities 17,002,000
Current Debt 0
Non-Cash Working Capital (NCWC) 95,111,000
Change in NCWC -1,232,000
EBIT -2,833,000
Tax Provision 167,337,000
Depreciation and Amortization 18,361,000
Capital Expenditure -2,553,000
Unlevered Free Cash Flow 12,338,082
Current Assets 870,540,000
Current Cash 718,381,000
Current Liabilities 82,249,000
Current Debt 26,433,000
Non-Cash Working Capital (NCWC) 96,343,000
Change in NCWC 75,322,000
EBIT 213,914,000
Tax Provision 30,009,000
Depreciation and Amortization 14,718,000
Capital Expenditure -6,743,000
Unlevered Free Cash Flow 260,175,603
Current Assets 237,021,000
Current Cash 201,661,000
Current Liabilities 238,868,000
Current Debt 224,529,000
Non-Cash Working Capital (NCWC) 21,021,000
Change in NCWC 13,235,000
EBIT 66,028,000
Tax Provision 44,675,000
Depreciation and Amortization 11,714,000
Capital Expenditure -2,156,000
Unlevered Free Cash Flow 37,278,987
Current Assets 163,053,000
Current Cash 141,048,000
Current Liabilities 227,129,000
Current Debt 212,910,000
Non-Cash Working Capital (NCWC) 7,786,000
Change in NCWC 13,269,000
EBIT 21,785,000
Tax Provision 10,327,000
Depreciation and Amortization 11,290,000
Capital Expenditure -1,850,000
Unlevered Free Cash Flow 34,167,000
Current Assets 215,572,000
Current Cash 200,219,000
Current Liabilities 20,836,000
Current Debt 0
Non-Cash Working Capital (NCWC) -5,483,000
Change in NCWC -860,000
EBIT 23,206,000
Tax Provision -219,596,000
Depreciation and Amortization 2,627,000
Capital Expenditure -4,123,000
Unlevered Free Cash Flow 20,850,000
Current Assets 185,158,000
Current Cash 167,336,000
Current Liabilities 22,779,000
Current Debt 334,000
Non-Cash Working Capital (NCWC) -4,623,000
Change in NCWC 6,305,000
EBIT 20,710,000
Tax Provision 410,000
Depreciation and Amortization 2,657,000
Capital Expenditure -1,006,000
Unlevered Free Cash Flow 27,914,708
Current Assets 24,881,000
Current Cash 15,979,000
Current Liabilities 28,939,000
Current Debt 9,109,000
Non-Cash Working Capital (NCWC) -10,928,000
Change in NCWC -1,766,000
EBIT 15,983,000
Tax Provision 374,000
Depreciation and Amortization 2,663,000
Capital Expenditure -3,948,000
Unlevered Free Cash Flow 12,282,679
Current Assets 23,823,000
Current Cash 12,381,000
Current Liabilities 35,439,000
Current Debt 14,835,000
Non-Cash Working Capital (NCWC) -9,162,000
Change in NCWC 9,292,000
EBIT 889,000
Tax Provision -1,191,000
Depreciation and Amortization 2,727,000
Capital Expenditure -595,000
Unlevered Free Cash Flow 12,313,000

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