Intrinsic value of Orexigen Therapeutics - OREX

Previous Close

$1.78

  Intrinsic Value

$0.97

stock screener

  Rating & Target

sell

-45%

Previous close

$1.78

 
Intrinsic value

$0.97

 
Up/down potential

-45%

 
Rating

sell

We calculate the intrinsic value of OREX 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 0.0

 

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, %
  41.67
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  34
  54
  84
  126
  182
  257
  354
  475
  623
  802
  1,013
  1,258
  1,538
  1,854
  2,206
  2,594
  3,018
  3,476
  3,969
  4,495
  5,053
  5,644
  6,266
  6,918
  7,602
  8,315
  9,059
  9,834
  10,640
  11,479
  12,350
Variable operating expenses, $m
 
  192
  297
  444
  644
  908
  1,248
  1,676
  2,200
  2,831
  3,576
  4,441
  5,429
  6,544
  7,786
  9,155
  10,649
  12,267
  14,005
  15,862
  17,833
  19,917
  22,112
  24,415
  26,826
  29,344
  31,970
  34,705
  37,550
  40,508
  43,583
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
  72
  192
  297
  444
  644
  908
  1,248
  1,676
  2,200
  2,831
  3,576
  4,441
  5,429
  6,544
  7,786
  9,155
  10,649
  12,267
  14,005
  15,862
  17,833
  19,917
  22,112
  24,415
  26,826
  29,344
  31,970
  34,705
  37,550
  40,508
  43,583
Operating income, $m
  -39
  -138
  -213
  -318
  -461
  -651
  -895
  -1,201
  -1,577
  -2,029
  -2,563
  -3,182
  -3,891
  -4,689
  -5,580
  -6,561
  -7,631
  -8,791
  -10,037
  -11,367
  -12,780
  -14,273
  -15,846
  -17,497
  -19,224
  -21,029
  -22,911
  -24,871
  -26,910
  -29,030
  -31,233
EBITDA, $m
  -36
  -133
  -205
  -307
  -445
  -628
  -863
  -1,159
  -1,522
  -1,958
  -2,473
  -3,071
  -3,755
  -4,526
  -5,385
  -6,332
  -7,366
  -8,485
  -9,687
  -10,971
  -12,335
  -13,777
  -15,295
  -16,888
  -18,555
  -20,297
  -22,113
  -24,005
  -25,973
  -28,019
  -30,146
Interest expense (income), $m
  3
  6
  7
  13
  21
  31
  45
  63
  86
  113
  147
  186
  232
  284
  343
  408
  481
  560
  645
  737
  835
  939
  1,049
  1,165
  1,287
  1,414
  1,547
  1,686
  1,830
  1,981
  2,137
Earnings before tax, $m
  -24
  -143
  -220
  -331
  -482
  -682
  -940
  -1,264
  -1,662
  -2,142
  -2,709
  -3,368
  -4,122
  -4,973
  -5,922
  -6,969
  -8,112
  -9,350
  -10,682
  -12,104
  -13,615
  -15,213
  -16,895
  -18,662
  -20,511
  -22,443
  -24,458
  -26,556
  -28,740
  -31,010
  -33,370
Tax expense, $m
  1
  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
Net income, $m
  -25
  -143
  -220
  -331
  -482
  -682
  -940
  -1,264
  -1,662
  -2,142
  -2,709
  -3,368
  -4,122
  -4,973
  -5,922
  -6,969
  -8,112
  -9,350
  -10,682
  -12,104
  -13,615
  -15,213
  -16,895
  -18,662
  -20,511
  -22,443
  -24,458
  -26,556
  -28,740
  -31,010
  -33,370

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  104
  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
  305
  322
  497
  744
  1,079
  1,523
  2,093
  2,810
  3,689
  4,747
  5,996
  7,446
  9,103
  10,972
  13,055
  15,350
  17,855
  20,568
  23,483
  26,596
  29,902
  33,396
  37,076
  40,937
  44,980
  49,202
  53,605
  58,190
  62,961
  67,921
  73,077
Adjusted assets (=assets-cash), $m
  201
  322
  497
  744
  1,079
  1,523
  2,093
  2,810
  3,689
  4,747
  5,996
  7,446
  9,103
  10,972
  13,055
  15,350
  17,855
  20,568
  23,483
  26,596
  29,902
  33,396
  37,076
  40,937
  44,980
  49,202
  53,605
  58,190
  62,961
  67,921
  73,077
Revenue / Adjusted assets
  0.169
  0.168
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
Average production assets, $m
  40
  63
  98
  146
  212
  299
  411
  552
  724
  932
  1,177
  1,462
  1,788
  2,155
  2,564
  3,014
  3,506
  4,039
  4,612
  5,223
  5,872
  6,558
  7,281
  8,039
  8,833
  9,662
  10,527
  11,427
  12,364
  13,338
  14,351
Working capital, $m
  159
  27
  42
  63
  91
  129
  177
  237
  312
  401
  507
  629
  769
  927
  1,103
  1,297
  1,509
  1,738
  1,984
  2,247
  2,527
  2,822
  3,133
  3,459
  3,801
  4,158
  4,530
  4,917
  5,320
  5,739
  6,175
Total debt, $m
  166
  211
  369
  590
  892
  1,291
  1,805
  2,450
  3,241
  4,193
  5,317
  6,622
  8,114
  9,796
  11,670
  13,736
  15,991
  18,432
  21,056
  23,857
  26,832
  29,977
  33,289
  36,765
  40,403
  44,203
  48,166
  52,292
  56,586
  61,050
  65,690
Total liabilities, $m
  244
  290
  448
  669
  971
  1,370
  1,884
  2,529
  3,320
  4,272
  5,396
  6,701
  8,193
  9,875
  11,749
  13,815
  16,070
  18,511
  21,135
  23,936
  26,911
  30,056
  33,368
  36,844
  40,482
  44,282
  48,245
  52,371
  56,665
  61,129
  65,769
Total equity, $m
  60
  32
  50
  74
  108
  152
  209
  281
  369
  475
  600
  745
  910
  1,097
  1,305
  1,535
  1,786
  2,057
  2,348
  2,660
  2,990
  3,340
  3,708
  4,094
  4,498
  4,920
  5,361
  5,819
  6,296
  6,792
  7,308
Total liabilities and equity, $m
  304
  322
  498
  743
  1,079
  1,522
  2,093
  2,810
  3,689
  4,747
  5,996
  7,446
  9,103
  10,972
  13,054
  15,350
  17,856
  20,568
  23,483
  26,596
  29,901
  33,396
  37,076
  40,938
  44,980
  49,202
  53,606
  58,190
  62,961
  67,921
  73,077
Debt-to-equity ratio
  2.767
  6.550
  7.410
  7.940
  8.270
  8.480
  8.620
  8.720
  8.790
  8.830
  8.870
  8.890
  8.910
  8.930
  8.940
  8.950
  8.960
  8.960
  8.970
  8.970
  8.970
  8.980
  8.980
  8.980
  8.980
  8.980
  8.990
  8.990
  8.990
  8.990
  8.990
Adjusted equity ratio
  -0.219
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -25
  -143
  -220
  -331
  -482
  -682
  -940
  -1,264
  -1,662
  -2,142
  -2,709
  -3,368
  -4,122
  -4,973
  -5,922
  -6,969
  -8,112
  -9,350
  -10,682
  -12,104
  -13,615
  -15,213
  -16,895
  -18,662
  -20,511
  -22,443
  -24,458
  -26,556
  -28,740
  -31,010
  -33,370
Depreciation, amort., depletion, $m
  3
  5
  7
  11
  16
  23
  31
  42
  55
  71
  89
  111
  135
  163
  194
  228
  266
  306
  349
  396
  445
  497
  552
  609
  669
  732
  797
  866
  937
  1,010
  1,087
Funds from operations, $m
  -94
  -139
  -213
  -320
  -466
  -659
  -909
  -1,222
  -1,608
  -2,072
  -2,620
  -3,258
  -3,987
  -4,810
  -5,728
  -6,741
  -7,847
  -9,044
  -10,332
  -11,708
  -13,170
  -14,716
  -16,344
  -18,053
  -19,842
  -21,711
  -23,660
  -25,691
  -27,803
  -30,000
  -32,283
Change in working capital, $m
  16
  10
  15
  21
  28
  37
  48
  61
  74
  89
  106
  122
  140
  158
  176
  194
  212
  229
  246
  263
  279
  295
  311
  326
  342
  357
  372
  387
  403
  419
  436
Cash from operations, $m
  -110
  -149
  -227
  -341
  -494
  -697
  -957
  -1,283
  -1,682
  -2,161
  -2,726
  -3,380
  -4,127
  -4,968
  -5,904
  -6,935
  -8,058
  -9,274
  -10,579
  -11,971
  -13,449
  -15,011
  -16,655
  -18,379
  -20,184
  -22,068
  -24,033
  -26,078
  -28,206
  -30,419
  -32,718
Maintenance CAPEX, $m
  0
  -3
  -5
  -7
  -11
  -16
  -23
  -31
  -42
  -55
  -71
  -89
  -111
  -135
  -163
  -194
  -228
  -266
  -306
  -349
  -396
  -445
  -497
  -552
  -609
  -669
  -732
  -797
  -866
  -937
  -1,010
New CAPEX, $m
  0
  -24
  -34
  -48
  -66
  -87
  -112
  -141
  -173
  -208
  -245
  -285
  -325
  -367
  -409
  -451
  -492
  -533
  -572
  -611
  -649
  -686
  -723
  -758
  -794
  -829
  -865
  -900
  -937
  -974
  -1,012
Cash from investing activities, $m
  -107
  -27
  -39
  -55
  -77
  -103
  -135
  -172
  -215
  -263
  -316
  -374
  -436
  -502
  -572
  -645
  -720
  -799
  -878
  -960
  -1,045
  -1,131
  -1,220
  -1,310
  -1,403
  -1,498
  -1,597
  -1,697
  -1,803
  -1,911
  -2,022
Free cash flow, $m
  -217
  -176
  -267
  -396
  -571
  -800
  -1,092
  -1,455
  -1,896
  -2,424
  -3,042
  -3,754
  -4,563
  -5,471
  -6,476
  -7,580
  -8,779
  -10,072
  -11,457
  -12,932
  -14,494
  -16,142
  -17,874
  -19,689
  -21,587
  -23,566
  -25,629
  -27,776
  -30,009
  -32,330
  -34,741
Issuance/(repayment) of debt, $m
  110
  45
  158
  222
  302
  399
  514
  645
  792
  952
  1,124
  1,305
  1,492
  1,682
  1,874
  2,066
  2,255
  2,441
  2,623
  2,801
  2,975
  3,145
  3,312
  3,476
  3,638
  3,800
  3,963
  4,127
  4,294
  4,464
  4,640
Issuance/(repurchase) of shares, $m
  45
  220
  237
  355
  515
  726
  997
  1,336
  1,750
  2,248
  2,834
  3,513
  4,288
  5,160
  6,131
  7,198
  8,363
  9,622
  10,973
  12,415
  13,946
  15,562
  17,263
  19,048
  20,915
  22,865
  24,898
  27,015
  29,217
  31,506
  33,885
Cash from financing (excl. dividends), $m  
  155
  265
  395
  577
  817
  1,125
  1,511
  1,981
  2,542
  3,200
  3,958
  4,818
  5,780
  6,842
  8,005
  9,264
  10,618
  12,063
  13,596
  15,216
  16,921
  18,707
  20,575
  22,524
  24,553
  26,665
  28,861
  31,142
  33,511
  35,970
  38,525
Total cash flow (excl. dividends), $m
  -63
  89
  129
  181
  246
  325
  419
  526
  646
  776
  917
  1,064
  1,216
  1,372
  1,529
  1,685
  1,839
  1,991
  2,140
  2,285
  2,426
  2,565
  2,701
  2,835
  2,967
  3,099
  3,232
  3,366
  3,502
  3,641
  3,784
Retained Cash Flow (-), $m
  -27
  -220
  -237
  -355
  -515
  -726
  -997
  -1,336
  -1,750
  -2,248
  -2,834
  -3,513
  -4,288
  -5,160
  -6,131
  -7,198
  -8,363
  -9,622
  -10,973
  -12,415
  -13,946
  -15,562
  -17,263
  -19,048
  -20,915
  -22,865
  -24,898
  -27,015
  -29,217
  -31,506
  -33,885
Prev. year cash balance distribution, $m
 
  104
  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
 
  -27
  -109
  -175
  -269
  -401
  -578
  -810
  -1,105
  -1,472
  -1,918
  -2,449
  -3,072
  -3,788
  -4,602
  -5,514
  -6,524
  -7,631
  -8,834
  -10,131
  -11,519
  -12,997
  -14,563
  -16,213
  -17,948
  -19,766
  -21,667
  -23,649
  -25,715
  -27,865
  -30,101
Discount rate, %
 
  7.80
  8.19
  8.60
  9.03
  9.48
  9.95
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.41
  27.73
  29.12
  30.58
  32.11
PV of cash for distribution, $m
 
  -25
  -93
  -136
  -191
  -255
  -327
  -404
  -480
  -551
  -612
  -657
  -683
  -689
  -674
  -640
  -589
  -527
  -457
  -386
  -315
  -250
  -193
  -144
  -104
  -72
  -49
  -32
  -20
  -12
  -7
Current shareholders' claim on cash, %
  100
  50.0
  4.3
  0.4
  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
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Orexigen Therapeutics, Inc. is a biopharmaceutical company. The Company is focused on the treatment of obesity. The Company's product, Contrave, is approved in the United States by the United States Food and Drug Administration as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adults with an initial body mass index (BMI) of 30 kilograms per square meter or greater (obese) or 27 kilograms per square meter or greater (overweight) in the presence of a weight-related comorbid condition. Contrave is a combination of generic drug components, each of which has received regulatory approval for other indications and has been commercialized in the United States and in a range of member countries of the European Union. Contrave regulates appetite and energy expenditure through central nervous system (CNS) activity. Contrave is a fixed dose combination of bupropion hydrochloride (HCl) extended release (ER) and naltrexone HCl ER.

FINANCIAL RATIOS  of  Orexigen Therapeutics (OREX)

Valuation Ratios
P/E Ratio -1
Price to Sales 0.8
Price to Book 0.4
Price to Tangible Book
Price to Cash Flow -0.2
Price to Free Cash Flow -0.2
Growth Rates
Sales Growth Rate 41.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -100%
Cap. Spend. - 3 Yr. Gr. Rate -100%
Financial Strength
Quick Ratio NaN
Current Ratio 1.4
LT Debt to Equity 276.7%
Total Debt to Equity 276.7%
Interest Coverage -7
Management Effectiveness
Return On Assets -8.1%
Ret/ On Assets - 3 Yr. Avg. -18.4%
Return On Total Capital -14.4%
Ret/ On T. Cap. - 3 Yr. Avg. -36.2%
Return On Equity -53.8%
Return On Equity - 3 Yr. Avg. -141.1%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 76.5%
Gross Margin - 3 Yr. Avg. 25.5%
EBITDA Margin -52.9%
EBITDA Margin - 3 Yr. Avg. -127.4%
Operating Margin -111.8%
Oper. Margin - 3 Yr. Avg. -139.8%
Pre-Tax Margin -70.6%
Pre-Tax Margin - 3 Yr. Avg. -139.2%
Net Profit Margin -73.5%
Net Profit Margin - 3 Yr. Avg. -143%
Effective Tax Rate -4.2%
Eff/ Tax Rate - 3 Yr. Avg. -2.4%
Payout Ratio 0%

OREX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the OREX stock intrinsic value calculation we used $34 million for the last fiscal year's total revenue generated by Orexigen Therapeutics. The default revenue input number comes from 2016 income statement of Orexigen Therapeutics. 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 OREX stock valuation model: a) initial revenue growth rate of 60% 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 7.8%, whose default value for OREX is calculated based on our internal credit rating of Orexigen Therapeutics, 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 Orexigen Therapeutics.
    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 OREX stock the variable cost ratio is equal to 352.9%.

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 OREX 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 3.5% for Orexigen Therapeutics.

Corporate tax rate of 27% is the nominal tax rate for Orexigen Therapeutics. 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 OREX 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 OREX are equal to 116.2%.

Life of production assets of 13.2 years is the average useful life of capital assets used in Orexigen Therapeutics 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 OREX is equal to 50%. 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 - $60 million for Orexigen Therapeutics - 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 15.433 million for Orexigen Therapeutics 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 Orexigen Therapeutics at the current share price and the inputted number of shares is $0.0 billion.

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COMPANY NEWS

▶ Orexigen reports 2Q loss   [Aug-08-17 04:47PM  Associated Press]
▶ Edison Issues Outlook on Orexigen Therapeutics (OREX)   [Jun-16-17 08:15AM  Accesswire]
▶ The 3 Best Obesity-Drug Stocks to Buy in 2017   [May-19-17 08:04AM  Motley Fool]
▶ Orexigen reports 1Q loss   [May-09-17 05:08PM  Associated Press]
▶ Orexigen reports 4Q loss   [05:01PM  Associated Press]
▶ Should You Avoid Orexigen Therapeutics, Inc. (OREX)?   [Dec-12-16 08:35AM  at Insider Monkey]
Financial statements of OREX
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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