Intrinsic value of AMAG Pharmaceuticals - AMAG

Previous Close

$19.95

  Intrinsic Value

$160.61

stock screener

  Rating & Target

str. buy

+705%

  Value-price divergence*

+213%

Previous close

$19.95

 
Intrinsic value

$160.61

 
Up/down potential

+705%

 
Rating

str. buy

 
Value-price divergence*

+213%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of AMAG stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  27.27
  27.50
  25.25
  23.23
  21.40
  19.76
  18.29
  16.96
  15.76
  14.69
  13.72
  12.85
  12.06
  11.35
  10.72
  10.15
  9.63
  9.17
  8.75
  8.38
  8.04
  7.74
  7.46
  7.22
  6.99
  6.79
  6.62
  6.45
  6.31
  6.18
  6.06
Revenue, $m
  532
  678
  850
  1,047
  1,271
  1,522
  1,800
  2,106
  2,438
  2,796
  3,179
  3,587
  4,020
  4,477
  4,956
  5,459
  5,985
  6,534
  7,106
  7,701
  8,320
  8,964
  9,633
  10,328
  11,050
  11,801
  12,582
  13,394
  14,239
  15,118
  16,035
Variable operating expenses, $m
 
  499
  608
  735
  878
  1,039
  1,218
  1,413
  1,626
  1,856
  2,101
  2,299
  2,576
  2,869
  3,177
  3,499
  3,836
  4,188
  4,554
  4,936
  5,332
  5,745
  6,174
  6,619
  7,082
  7,563
  8,064
  8,584
  9,126
  9,689
  10,276
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  453
  499
  608
  735
  878
  1,039
  1,218
  1,413
  1,626
  1,856
  2,101
  2,299
  2,576
  2,869
  3,177
  3,499
  3,836
  4,188
  4,554
  4,936
  5,332
  5,745
  6,174
  6,619
  7,082
  7,563
  8,064
  8,584
  9,126
  9,689
  10,276
Operating income, $m
  79
  180
  241
  312
  393
  483
  583
  692
  811
  940
  1,078
  1,288
  1,444
  1,608
  1,780
  1,961
  2,149
  2,346
  2,552
  2,766
  2,988
  3,219
  3,459
  3,709
  3,968
  4,238
  4,518
  4,810
  5,113
  5,429
  5,758
EBITDA, $m
  179
  326
  408
  503
  611
  732
  866
  1,012
  1,172
  1,344
  1,528
  1,725
  1,933
  2,152
  2,383
  2,625
  2,878
  3,141
  3,416
  3,703
  4,000
  4,310
  4,631
  4,965
  5,313
  5,674
  6,049
  6,439
  6,846
  7,269
  7,709
Interest expense (income), $m
  62
  61
  87
  118
  154
  194
  240
  290
  345
  405
  469
  539
  612
  690
  773
  859
  950
  1,045
  1,144
  1,247
  1,355
  1,466
  1,582
  1,703
  1,829
  1,959
  2,094
  2,235
  2,382
  2,534
  2,693
Earnings before tax, $m
  9
  119
  154
  194
  239
  288
  343
  403
  467
  535
  608
  750
  831
  917
  1,007
  1,101
  1,199
  1,302
  1,408
  1,518
  1,633
  1,753
  1,877
  2,006
  2,140
  2,279
  2,424
  2,575
  2,732
  2,895
  3,065
Tax expense, $m
  11
  32
  42
  52
  64
  78
  93
  109
  126
  145
  164
  202
  224
  248
  272
  297
  324
  351
  380
  410
  441
  473
  507
  542
  578
  615
  654
  695
  738
  782
  828
Net income, $m
  -2
  87
  112
  141
  174
  211
  250
  294
  341
  391
  444
  547
  607
  670
  735
  804
  876
  950
  1,028
  1,108
  1,192
  1,280
  1,370
  1,464
  1,562
  1,664
  1,769
  1,879
  1,994
  2,113
  2,238

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  579
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  2,478
  2,423
  3,034
  3,739
  4,539
  5,436
  6,430
  7,521
  8,706
  9,984
  11,354
  12,812
  14,358
  15,988
  17,702
  19,498
  21,376
  23,336
  25,379
  27,505
  29,716
  32,015
  34,403
  36,886
  39,466
  42,147
  44,935
  47,836
  50,853
  53,995
  57,267
Adjusted assets (=assets-cash), $m
  1,899
  2,423
  3,034
  3,739
  4,539
  5,436
  6,430
  7,521
  8,706
  9,984
  11,354
  12,812
  14,358
  15,988
  17,702
  19,498
  21,376
  23,336
  25,379
  27,505
  29,716
  32,015
  34,403
  36,886
  39,466
  42,147
  44,935
  47,836
  50,853
  53,995
  57,267
Revenue / Adjusted assets
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
Average production assets, $m
  1,172
  1,494
  1,871
  2,305
  2,799
  3,352
  3,965
  4,637
  5,368
  6,156
  7,000
  7,900
  8,852
  9,858
  10,914
  12,022
  13,180
  14,388
  15,647
  16,958
  18,322
  19,739
  21,212
  22,742
  24,333
  25,986
  27,705
  29,493
  31,354
  33,291
  35,308
Working capital, $m
  406
  -68
  -85
  -105
  -127
  -152
  -180
  -211
  -244
  -280
  -318
  -359
  -402
  -448
  -496
  -546
  -599
  -653
  -711
  -770
  -832
  -896
  -963
  -1,033
  -1,105
  -1,180
  -1,258
  -1,339
  -1,424
  -1,512
  -1,603
Total debt, $m
  987
  1,386
  1,876
  2,442
  3,083
  3,803
  4,600
  5,474
  6,425
  7,450
  8,549
  9,719
  10,958
  12,265
  13,640
  15,080
  16,587
  18,159
  19,797
  21,502
  23,275
  25,119
  27,035
  29,025
  31,095
  33,245
  35,481
  37,807
  40,227
  42,747
  45,371
Total liabilities, $m
  1,544
  1,943
  2,433
  2,999
  3,640
  4,360
  5,157
  6,031
  6,982
  8,007
  9,106
  10,276
  11,515
  12,822
  14,197
  15,637
  17,144
  18,716
  20,354
  22,059
  23,832
  25,676
  27,592
  29,582
  31,652
  33,802
  36,038
  38,364
  40,784
  43,304
  45,928
Total equity, $m
  934
  480
  601
  740
  899
  1,076
  1,273
  1,489
  1,724
  1,977
  2,248
  2,537
  2,843
  3,166
  3,505
  3,861
  4,232
  4,621
  5,025
  5,446
  5,884
  6,339
  6,812
  7,303
  7,814
  8,345
  8,897
  9,471
  10,069
  10,691
  11,339
Total liabilities and equity, $m
  2,478
  2,423
  3,034
  3,739
  4,539
  5,436
  6,430
  7,520
  8,706
  9,984
  11,354
  12,813
  14,358
  15,988
  17,702
  19,498
  21,376
  23,337
  25,379
  27,505
  29,716
  32,015
  34,404
  36,885
  39,466
  42,147
  44,935
  47,835
  50,853
  53,995
  57,267
Debt-to-equity ratio
  1.057
  2.890
  3.120
  3.300
  3.430
  3.530
  3.610
  3.680
  3.730
  3.770
  3.800
  3.830
  3.850
  3.870
  3.890
  3.910
  3.920
  3.930
  3.940
  3.950
  3.960
  3.960
  3.970
  3.970
  3.980
  3.980
  3.990
  3.990
  4.000
  4.000
  4.000
Adjusted equity ratio
  0.187
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -2
  87
  112
  141
  174
  211
  250
  294
  341
  391
  444
  547
  607
  670
  735
  804
  876
  950
  1,028
  1,108
  1,192
  1,280
  1,370
  1,464
  1,562
  1,664
  1,769
  1,879
  1,994
  2,113
  2,238
Depreciation, amort., depletion, $m
  100
  146
  167
  191
  219
  249
  283
  320
  360
  404
  451
  436
  489
  545
  603
  664
  728
  795
  865
  937
  1,012
  1,091
  1,172
  1,256
  1,344
  1,436
  1,531
  1,629
  1,732
  1,839
  1,951
Funds from operations, $m
  312
  233
  280
  333
  393
  460
  533
  614
  701
  795
  895
  984
  1,096
  1,214
  1,338
  1,468
  1,604
  1,745
  1,892
  2,045
  2,205
  2,370
  2,542
  2,721
  2,906
  3,099
  3,300
  3,509
  3,726
  3,953
  4,188
Change in working capital, $m
  66
  -15
  -17
  -20
  -22
  -25
  -28
  -31
  -33
  -36
  -38
  -41
  -43
  -46
  -48
  -50
  -53
  -55
  -57
  -60
  -62
  -64
  -67
  -70
  -72
  -75
  -78
  -81
  -84
  -88
  -92
Cash from operations, $m
  246
  248
  297
  352
  415
  485
  561
  644
  734
  831
  933
  1,025
  1,139
  1,260
  1,386
  1,518
  1,656
  1,800
  1,949
  2,105
  2,267
  2,434
  2,609
  2,790
  2,979
  3,174
  3,378
  3,590
  3,811
  4,041
  4,280
Maintenance CAPEX, $m
  0
  -65
  -83
  -103
  -127
  -155
  -185
  -219
  -256
  -297
  -340
  -387
  -436
  -489
  -545
  -603
  -664
  -728
  -795
  -865
  -937
  -1,012
  -1,091
  -1,172
  -1,256
  -1,344
  -1,436
  -1,531
  -1,629
  -1,732
  -1,839
New CAPEX, $m
  -5
  -322
  -377
  -434
  -493
  -553
  -613
  -672
  -731
  -788
  -844
  -899
  -953
  -1,005
  -1,057
  -1,107
  -1,158
  -1,208
  -1,259
  -1,311
  -1,363
  -1,417
  -1,473
  -1,531
  -1,591
  -1,653
  -1,719
  -1,788
  -1,861
  -1,937
  -2,017
Cash from investing activities, $m
  -73
  -387
  -460
  -537
  -620
  -708
  -798
  -891
  -987
  -1,085
  -1,184
  -1,286
  -1,389
  -1,494
  -1,602
  -1,710
  -1,822
  -1,936
  -2,054
  -2,176
  -2,300
  -2,429
  -2,564
  -2,703
  -2,847
  -2,997
  -3,155
  -3,319
  -3,490
  -3,669
  -3,856
Free cash flow, $m
  173
  -139
  -163
  -185
  -206
  -223
  -237
  -247
  -253
  -254
  -251
  -261
  -250
  -234
  -215
  -192
  -166
  -137
  -105
  -70
  -34
  5
  45
  88
  131
  177
  223
  271
  321
  371
  423
Issuance/(repayment) of debt, $m
  -18
  420
  491
  565
  642
  719
  797
  874
  951
  1,025
  1,098
  1,170
  1,239
  1,307
  1,374
  1,441
  1,506
  1,572
  1,638
  1,705
  1,773
  1,844
  1,916
  1,991
  2,069
  2,151
  2,236
  2,326
  2,420
  2,519
  2,624
Issuance/(repurchase) of shares, $m
  -16
  17
  9
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -128
  437
  500
  565
  642
  719
  797
  874
  951
  1,025
  1,098
  1,170
  1,239
  1,307
  1,374
  1,441
  1,506
  1,572
  1,638
  1,705
  1,773
  1,844
  1,916
  1,991
  2,069
  2,151
  2,236
  2,326
  2,420
  2,519
  2,624
Total cash flow (excl. dividends), $m
  46
  298
  336
  380
  436
  496
  560
  628
  698
  771
  847
  908
  989
  1,073
  1,159
  1,248
  1,340
  1,435
  1,533
  1,635
  1,740
  1,848
  1,961
  2,079
  2,201
  2,327
  2,460
  2,597
  2,741
  2,891
  3,047
Retained Cash Flow (-), $m
  -2
  -104
  -121
  -140
  -158
  -178
  -197
  -216
  -235
  -253
  -271
  -289
  -306
  -323
  -339
  -356
  -372
  -388
  -404
  -421
  -438
  -455
  -473
  -492
  -511
  -531
  -552
  -574
  -597
  -622
  -648
Prev. year cash balance distribution, $m
 
  558
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  752
  215
  240
  278
  319
  364
  412
  463
  518
  576
  620
  683
  750
  820
  893
  968
  1,047
  1,129
  1,214
  1,302
  1,393
  1,488
  1,587
  1,690
  1,796
  1,907
  2,023
  2,143
  2,269
  2,400
Discount rate, %
 
  4.80
  5.04
  5.29
  5.56
  5.83
  6.13
  6.43
  6.75
  7.09
  7.45
  7.82
  8.21
  8.62
  9.05
  9.50
  9.98
  10.48
  11.00
  11.55
  12.13
  12.74
  13.37
  14.04
  14.74
  15.48
  16.25
  17.07
  17.92
  18.82
  19.76
PV of cash for distribution, $m
 
  718
  195
  206
  224
  240
  254
  266
  275
  280
  281
  271
  265
  256
  244
  229
  211
  192
  172
  152
  132
  112
  94
  77
  62
  49
  38
  29
  21
  15
  11
Current shareholders' claim on cash, %
  100
  94.0
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6
  91.6

AMAG Pharmaceuticals, Inc., a biopharmaceutical company, manufactures, develops, and commercializes therapeutics for women’s health, anemia management, and cancer supportive care in the United States. It markets Makena, a hydroxyprogesterone caproate injection to reduce the risk of preterm birth in women pregnant with a single baby who have a history of singleton spontaneous preterm birth; Feraheme (ferumoxytol), an intravenous iron replacement therapeutic agent for the treatment of iron deficiency anemia in adult patients with chronic kidney disease; and MuGard Mucoadhesive Oral Wound Rinse for the management of oral mucocitis/stomatiits and various types of oral wounds. The company also offers Cord Blood Registry services that are related to the collection, processing, and storage of umbilical cord blood and cord tissue units for pregnant women and their families. In addition, it has a option agreement with Velo to acquire the rights to digoxin immune fab, a polyclonal antibody in clinical development for the treatment of severe preeclampsia in pregnant women. The company sells Feraheme to authorized wholesalers and specialty distributors. It has a license agreement with Palatin Technologies, Inc. to research, develop, and commercialize Rekynda, an investigational product designed to be an on-demand treatment for hypoactive sexual desire disorder in pre-menopausal women, as well as with Endoceutics, Inc. to develop and commercialize pharmaceutical products with dehydroepiandrosterone; and development and license agreement with Antares Pharma, Inc. to develop, use, sell, and offer for sale and import and export the Makena auto-injector. AMAG Pharmaceuticals, Inc. was founded in 1981 and is headquartered in Waltham, Massachusetts.

FINANCIAL RATIOS  of  AMAG Pharmaceuticals (AMAG)

Valuation Ratios
P/E Ratio -342.5
Price to Sales 1.3
Price to Book 0.7
Price to Tangible Book
Price to Cash Flow 2.8
Price to Free Cash Flow 2.8
Growth Rates
Sales Growth Rate 27.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 400%
Cap. Spend. - 3 Yr. Gr. Rate 20.1%
Financial Strength
Quick Ratio 28
Current Ratio 0
LT Debt to Equity 103.4%
Total Debt to Equity 105.7%
Interest Coverage 1
Management Effectiveness
Return On Assets -0.6%
Ret/ On Assets - 3 Yr. Avg. 5.3%
Return On Total Capital -0.1%
Ret/ On T. Cap. - 3 Yr. Avg. 8.8%
Return On Equity -0.2%
Return On Equity - 3 Yr. Avg. 15.9%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 78%
Gross Margin - 3 Yr. Avg. 80.3%
EBITDA Margin 32.1%
EBITDA Margin - 3 Yr. Avg. 19.8%
Operating Margin 14.8%
Oper. Margin - 3 Yr. Avg. 11.8%
Pre-Tax Margin 1.7%
Pre-Tax Margin - 3 Yr. Avg. -0.8%
Net Profit Margin -0.4%
Net Profit Margin - 3 Yr. Avg. 39.1%
Effective Tax Rate 122.2%
Eff/ Tax Rate - 3 Yr. Avg. 346.6%
Payout Ratio 0%

AMAG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AMAG stock intrinsic value calculation we used $532 million for the last fiscal year's total revenue generated by AMAG Pharmaceuticals. The default revenue input number comes from 2016 income statement of AMAG Pharmaceuticals. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our AMAG stock valuation model: a) initial revenue growth rate of 27.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.8%, whose default value for AMAG is calculated based on our internal credit rating of AMAG Pharmaceuticals, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of AMAG Pharmaceuticals.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of AMAG stock the variable cost ratio is equal to 76.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for AMAG stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 6.3% for AMAG Pharmaceuticals.

Corporate tax rate of 27% is the nominal tax rate for AMAG Pharmaceuticals. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the AMAG stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for AMAG are equal to 220.2%.

Life of production assets of 18.1 years is the average useful life of capital assets used in AMAG Pharmaceuticals operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for AMAG is equal to -10%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $934 million for AMAG Pharmaceuticals - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 31.989 million for AMAG Pharmaceuticals is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of AMAG Pharmaceuticals at the current share price and the inputted number of shares is $0.6 billion.

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COMPANY NEWS

▶ Could An FDA Delay Snag This Biotech's Pre-Term Birth Drug?   [Jun-26-17 04:17PM  Investor's Business Daily]
▶ Biotech Movers: Luminex, Exelixis, AMAG Pharmaceuticals   [May-02-17 09:19AM  TheStreet.com]
▶ AMAG Pharmaceuticals reports 1Q loss   [07:55AM  Associated Press]
▶ AMAG Pharmaceuticals Inks $60M Drug Deal   [11:44AM  at Investopedia]
▶ Here's Why AMAG Pharmaceuticals Is Falling Today   [Feb-02-17 03:12PM  at Motley Fool]
▶ Why AMAG Pharmaceuticals, Inc. Is Falling Today   [Jan-09-17 12:33PM  at Motley Fool]
▶ Top Biotech Picks: "The Strong Will Survive And Thrive"   [Jan-05-17 02:44PM  at Barrons.com]
▶ Where Will AMAG Pharmaceuticals Be 1 Year From Now?   [Dec-23-16 11:07AM  at Motley Fool]
Stock chart of AMAG Financial statements of AMAG Annual reports of AMAG
Valuation of Stocks

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