DCF Tool

OPK

Opko Health Inc – Pharmaceutical Preparation Manufacturing
Opko Health Inc. is a multinational biopharmaceutical and diagnostics company that seeks to establish industry-leading positions in large, rapidly growing markets by leveraging its discovery, development, and commercialization expertise and novel and proprietary technologies.
Analysis Results
Intrinsic Value $29.27
Latest Price $1.35
Relative Value 95% 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 58.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 58.9%, 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 0.48 0.432
2023 0.763 0.616
2024 1.21 0.88
2025 1.93 1.26
2026 3.06 1.79
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 33.6 billion. This corresponds to a present value of 17.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.98 billion. Adding in the terminal value gives a total present value of 22.6 billion.

There are presently 773.0 million outstanding shares, so the intrinsic value per share is 29.27.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 823,013,000
Current Cash 134,710,000
Current Liabilities 330,008,000
Current Debt 16,952,000
Non-Cash Working Capital (NCWC) 375,247,000
Change in NCWC 272,606,000
EBIT -15,090,000
Tax Provision 15,489,000
Depreciation and Amortization 78,716,000
Capital Expenditure -32,156,000
Unlevered Free Cash Flow 304,076,000
Current Assets 523,179,000
Current Cash 72,211,000
Current Liabilities 375,483,000
Current Debt 27,156,000
Non-Cash Working Capital (NCWC) 102,641,000
Change in NCWC 100,805,000
EBIT 53,245,000
Tax Provision 17,617,000
Depreciation and Amortization 85,362,000
Capital Expenditure -33,682,000
Unlevered Free Cash Flow 186,270,274
Current Assets 324,045,000
Current Cash 85,452,000
Current Liabilities 249,119,000
Current Debt 12,362,000
Non-Cash Working Capital (NCWC) 1,836,000
Change in NCWC 28,206,000
EBIT -199,407,000
Tax Provision 7,060,000
Depreciation and Amortization 93,807,000
Capital Expenditure -12,741,000
Unlevered Free Cash Flow -90,135,000
Current Assets 317,731,000
Current Cash 96,473,000
Current Liabilities 288,321,000
Current Debt 40,693,000
Non-Cash Working Capital (NCWC) -26,370,000
Change in NCWC 7,678,000
EBIT -180,732,000
Tax Provision -38,726,000
Depreciation and Amortization 97,344,000
Capital Expenditure -27,858,000
Unlevered Free Cash Flow -103,568,000
Current Assets 343,461,000
Current Cash 91,499,000
Current Liabilities 301,335,000
Current Debt 15,325,000
Non-Cash Working Capital (NCWC) -34,048,000
Change in NCWC -100,626,000
EBIT -297,956,000
Tax Provision 18,855,000
Depreciation and Amortization 102,093,000
Capital Expenditure -46,524,000
Unlevered Free Cash Flow -343,013,000
Current Assets 483,601,000
Current Cash 168,733,000
Current Liabilities 263,296,000
Current Debt 15,006,000
Non-Cash Working Capital (NCWC) 66,578,000
Change in NCWC 41,179,000
EBIT -63,973,000
Tax Provision -56,115,000
Depreciation and Amortization 96,576,000
Capital Expenditure -23,547,000
Unlevered Free Cash Flow 50,235,000
Current Assets 454,058,000
Current Cash 193,598,000
Current Liabilities 251,902,000
Current Debt 16,841,000
Non-Cash Working Capital (NCWC) 25,399,000
Change in NCWC 49,093,000
EBIT -74,647,000
Tax Provision -113,675,000
Depreciation and Amortization 42,248,000
Capital Expenditure -15,846,000
Unlevered Free Cash Flow 848,000
Current Assets 142,869,000
Current Cash 96,907,000
Current Liabilities 83,111,000
Current Debt 13,455,000
Non-Cash Working Capital (NCWC) -23,694,000
Change in NCWC -1,336,000
EBIT -112,901,000
Tax Provision 24,000
Depreciation and Amortization 14,927,000
Capital Expenditure -4,734,000
Unlevered Free Cash Flow -104,044,000
Current Assets 242,728,000
Current Cash 185,798,000
Current Liabilities 91,850,000
Current Debt 12,562,000
Non-Cash Working Capital (NCWC) -22,358,000
Change in NCWC -38,798,000
EBIT -84,141,000
Tax Provision 1,672,000
Depreciation and Amortization 15,216,000
Capital Expenditure -3,962,000
Unlevered Free Cash Flow -111,685,000
Current Assets 78,657,000
Current Cash 27,361,000
Current Liabilities 52,382,000
Current Debt 17,526,000
Non-Cash Working Capital (NCWC) 16,440,000
Change in NCWC -1,605,000
EBIT -38,546,000
Tax Provision -9,626,000
Depreciation and Amortization 10,160,000
Capital Expenditure -1,472,000
Unlevered Free Cash Flow -31,463,000

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