DCF Tool

VERU

Veru Inc – Pharmaceutical Preparation Manufacturing
Veru Inc. is an oncology biopharmaceutical company with a focus on developing novel medicines for the management of prostate cancer and breast cancer. The Veru prostate cancer pipeline includes VERU-111, VERU-100, and Zuclomiphene citrate. VERU-111 is an oral, first-in-class, new chemical entity that targets, crosslinks, and disrupts alpha and beta tubulin subunits of microtubules for the treatment of metastatic castration and androgen receptor resistant prostate cancer. VERU-100 is a novel, proprietary peptide formulation designed to address the current limitations of commercially available androgen deprivation therapies (ADT) for advanced prostate cancer. Zuclomiphene citrate is an oral nonsteroidal estrogen receptor agonist being developed to treat hot flashes, a common side effect caused by ADT in men with advanced prostate cancer. The Veru breast cancer pipeline includes enobosarm for AR+/ER+/HER2- metastatic breast cancer and VERU-111 for taxane resistant metastatic triple negative breast cancer. Enobosarm is an oral, first-in-class, new chemical entity, selective androgen receptor agonist that targets and activates the androgen receptor in AR+/ER+/HER2- metastatic breast cancer without unwanted masculinizing side effects. VERU-111 is also being advanced into a Phase 3 trial for the treatment of hospitalized patients with COVID-19 who are at high risk for acute respiratory distress syndrome.
Analysis Results
Intrinsic Value $0.00
Latest Price $13.38
Relative Value 396902% overvalued
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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 -39.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -39.4%, 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)
2022 0.0891 0.0814
2023 0.054 0.0451
2024 0.0328 0.025
2025 0.0199 0.0139
2026 0.012 0.00769
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 0.166 million. This corresponds to a present value of 0.0967 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 0.173 million. Adding in the terminal value gives a total present value of 0.27 million.

There are presently 80.1 million outstanding shares, so the intrinsic value per share is 0.0.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 303,506,974
Current Cash 244,719,070
Current Liabilities 31,534,620
Current Debt 0
Non-Cash Working Capital (NCWC) 27,253,284
Change in NCWC 22,712,639
EBIT -10,875,002
Tax Provision -6,258,276
Depreciation and Amortization 422,788
Capital Expenditure -753,298
Unlevered Free Cash Flow 11,507,127
Current Assets 27,014,690
Current Cash 13,588,778
Current Liabilities 14,727,141
Current Debt 5,841,874
Non-Cash Working Capital (NCWC) 4,540,645
Change in NCWC 2,663,211
EBIT -646,694
Tax Provision -1,078,441
Depreciation and Amortization 462,741
Capital Expenditure -105,760
Unlevered Free Cash Flow 2,373,498
Current Assets 16,806,912
Current Cash 6,295,152
Current Liabilities 14,019,975
Current Debt 5,385,649
Non-Cash Working Capital (NCWC) 1,877,434
Change in NCWC 1,179,636
EBIT -6,435,894
Tax Provision -303,933
Depreciation and Amortization 471,421
Capital Expenditure -108,517
Unlevered Free Cash Flow -4,893,354
Current Assets 11,182,516
Current Cash 3,624,509
Current Liabilities 13,552,927
Current Debt 6,692,718
Non-Cash Working Capital (NCWC) 697,798
Change in NCWC -973,717
EBIT -16,885,889
Tax Provision 866,102
Depreciation and Amortization 452,048
Capital Expenditure -50,654
Unlevered Free Cash Flow -17,458,212
Current Assets 10,297,973
Current Cash 3,138,877
Current Liabilities 5,487,581
Current Debt 0
Non-Cash Working Capital (NCWC) 1,671,515
Change in NCWC -11,046,270
EBIT -7,558,331
Tax Provision -1,990,443
Depreciation and Amortization 481,008
Capital Expenditure -133,486
Unlevered Free Cash Flow -18,257,079
Current Assets 18,314,901
Current Cash 2,250,639
Current Liabilities 3,346,477
Current Debt 0
Non-Cash Working Capital (NCWC) 12,717,785
Change in NCWC -623,045
EBIT 4,501,051
Tax Provision 2,469,191
Depreciation and Amortization 422,873
Capital Expenditure -6,374
Unlevered Free Cash Flow 344,865
Current Assets 21,585,955
Current Cash 4,020,117
Current Liabilities 4,225,008
Current Debt 0
Non-Cash Working Capital (NCWC) 13,340,830
Change in NCWC 9,386,694
EBIT 6,618,407
Tax Provision 2,341,004
Depreciation and Amortization 494,258
Capital Expenditure -135,424
Unlevered Free Cash Flow 14,046,958
Current Assets 13,072,763
Current Cash 5,740,417
Current Liabilities 3,378,210
Current Debt 0
Non-Cash Working Capital (NCWC) 3,954,136
Change in NCWC -604,900
EBIT 3,923,912
Tax Provision 1,524,130
Depreciation and Amortization 589,343
Capital Expenditure -97,311
Unlevered Free Cash Flow 2,299,731
Current Assets 16,888,665
Current Cash 8,922,430
Current Liabilities 3,407,199
Current Debt 0
Non-Cash Working Capital (NCWC) 4,559,036
Change in NCWC -1,115,958
EBIT 9,789,597
Tax Provision -4,408,744
Depreciation and Amortization 556,304
Capital Expenditure -302,198
Unlevered Free Cash Flow 8,927,745
Current Assets 16,826,215
Current Cash 5,290,780
Current Liabilities 5,860,441
Current Debt 0
Non-Cash Working Capital (NCWC) 5,674,994
Change in NCWC 2,534,610
EBIT 10,939,930
Tax Provision -4,507,298
Depreciation and Amortization 461,447
Capital Expenditure -718,303
Unlevered Free Cash Flow 13,217,684

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