DCF Tool

PCRX

Pacira BioSciences Inc – Pharmaceutical Preparation Manufacturing
pacira pharmaceuticals, inc. (nasdaq: pcrx) is an emerging specialty pharmaceutical company focused on the clinical and commercial development of new products that meet the needs of acute care practitioners and their patients. the company's current emphasis is the development of non-opioid products for postsurgical pain control, and its lead product, exparel® (bupivacaine liposome injectable suspension), was commercially launched in the united states in april 2012. exparel and two other products have utilized the pacira proprietary product delivery technology depofoam®, a unique platform that encapsulates drugs without altering their molecular structure and then releases them over a desired period of time.
Analysis Results
Intrinsic Value $1,272.13
Latest Price $27.81
Relative Value 98% 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 69.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 69.7%, 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 0.287 0.274
2024 0.487 0.445
2025 0.826 0.722
2026 1.4 1.17
2027 2.38 1.9
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 71.3 billion. This corresponds to a present value of 54.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.52 billion. Adding in the terminal value gives a total present value of 59.1 billion.

There are presently 46.4 million outstanding shares, so the intrinsic value per share is 1272.13.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 498,334,000
Current Cash 288,651,000
Current Liabilities 147,774,000
Current Debt 33,648,000
Non-Cash Working Capital (NCWC) 95,557,000
Change in NCWC 32,336,000
EBIT 70,927,000
Tax Provision -2,607,000
Depreciation and Amortization 91,501,000
Capital Expenditure -30,076,000
Unlevered Free Cash Flow 164,688,000
Current Assets 866,048,000
Current Cash 656,409,000
Current Liabilities 521,118,000
Current Debt 374,700,000
Non-Cash Working Capital (NCWC) 63,221,000
Change in NCWC 36,940,000
EBIT 132,835,000
Tax Provision 14,424,000
Depreciation and Amortization 28,548,000
Capital Expenditure -45,866,000
Unlevered Free Cash Flow 118,487,564
Current Assets 651,623,000
Current Cash 521,662,000
Current Liabilities 253,328,000
Current Debt 149,648,000
Non-Cash Working Capital (NCWC) 26,281,000
Change in NCWC 17,347,000
EBIT 51,516,000
Tax Provision -125,434,000
Depreciation and Amortization 19,908,000
Capital Expenditure -37,801,000
Unlevered Free Cash Flow 50,970,000
Current Assets 408,557,000
Current Cash 291,950,000
Current Liabilities 107,673,000
Current Debt 0
Non-Cash Working Capital (NCWC) 8,934,000
Change in NCWC -25,258,000
EBIT 35,710,000
Tax Provision 268,000
Depreciation and Amortization 19,576,000
Capital Expenditure -10,159,000
Unlevered Free Cash Flow 19,869,000
Current Assets 477,969,000
Current Cash 383,454,000
Current Liabilities 60,661,000
Current Debt 338,000
Non-Cash Working Capital (NCWC) 34,192,000
Change in NCWC 11,222,000
EBIT 17,479,000
Tax Provision 46,000
Depreciation and Amortization 13,165,000
Capital Expenditure -14,514,000
Unlevered Free Cash Flow 27,352,000
Current Assets 391,110,000
Current Cash 312,247,000
Current Liabilities 56,217,000
Current Debt 324,000
Non-Cash Working Capital (NCWC) 22,970,000
Change in NCWC -2,684,000
EBIT -20,069,000
Tax Provision 140,000
Depreciation and Amortization 13,833,000
Capital Expenditure -19,266,000
Unlevered Free Cash Flow -28,186,000
Current Assets 243,089,000
Current Cash 172,597,000
Current Liabilities 44,838,000
Current Debt 0
Non-Cash Working Capital (NCWC) 25,654,000
Change in NCWC -22,215,000
EBIT -32,024,000
Tax Provision 105,000
Depreciation and Amortization 12,919,000
Capital Expenditure -24,709,000
Unlevered Free Cash Flow -66,029,000
Current Assets 252,582,000
Current Cash 158,965,000
Current Liabilities 151,676,000
Current Debt 105,928,000
Non-Cash Working Capital (NCWC) 47,869,000
Change in NCWC 27,180,000
EBIT 9,455,000
Tax Provision 264,000
Depreciation and Amortization 11,475,000
Capital Expenditure -41,270,000
Unlevered Free Cash Flow 5,662,584
Current Assets 214,257,000
Current Cash 156,658,000
Current Liabilities 140,010,000
Current Debt 103,100,000
Non-Cash Working Capital (NCWC) 20,689,000
Change in NCWC 9,072,000
EBIT -5,165,000
Tax Provision 173,000
Depreciation and Amortization 10,035,000
Capital Expenditure -21,889,000
Unlevered Free Cash Flow -7,947,000
Current Assets 106,751,000
Current Cash 72,152,000
Current Liabilities 121,943,000
Current Debt 98,961,000
Non-Cash Working Capital (NCWC) 11,617,000
Change in NCWC 5,901,000
EBIT -53,289,000
Tax Provision -442,000
Depreciation and Amortization 5,747,000
Capital Expenditure -12,794,000
Unlevered Free Cash Flow -54,435,000
Current Assets 60,922,000
Current Cash 41,050,000
Current Liabilities 14,156,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,716,000
Change in NCWC 24,092,000
EBIT -49,298,000
Tax Provision 0
Depreciation and Amortization 5,648,000
Capital Expenditure -18,257,000
Unlevered Free Cash Flow -37,815,000

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