Intrinsic value of Peregrine Pharmaceuticals - PPHM

Previous Close

$4.20

  Intrinsic Value

$0.30

stock screener

  Rating & Target

str. sell

-93%

Previous close

$4.20

 
Intrinsic value

$0.30

 
Up/down potential

-93%

 
Rating

str. sell

We calculate the intrinsic value of PPHM 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 2017), $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 0.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  28.89
  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
  58
  93
  143
  214
  311
  439
  603
  810
  1,064
  1,369
  1,729
  2,146
  2,624
  3,163
  3,764
  4,425
  5,148
  5,930
  6,770
  7,667
  8,620
  9,628
  10,689
  11,802
  12,967
  14,185
  15,454
  16,776
  18,151
  19,581
  21,068
Variable operating expenses, $m
 
  208
  321
  481
  697
  984
  1,352
  1,815
  2,383
  3,067
  3,874
  4,810
  5,881
  7,089
  8,434
  9,917
  11,536
  13,288
  15,172
  17,183
  19,318
  21,576
  23,953
  26,448
  29,060
  31,788
  34,632
  37,595
  40,677
  43,882
  47,212
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
  86
  208
  321
  481
  697
  984
  1,352
  1,815
  2,383
  3,067
  3,874
  4,810
  5,881
  7,089
  8,434
  9,917
  11,536
  13,288
  15,172
  17,183
  19,318
  21,576
  23,953
  26,448
  29,060
  31,788
  34,632
  37,595
  40,677
  43,882
  47,212
Operating income, $m
  -28
  -115
  -178
  -266
  -386
  -545
  -749
  -1,005
  -1,320
  -1,698
  -2,145
  -2,664
  -3,257
  -3,925
  -4,671
  -5,492
  -6,388
  -7,359
  -8,402
  -9,515
  -10,698
  -11,948
  -13,265
  -14,646
  -16,093
  -17,603
  -19,178
  -20,819
  -22,526
  -24,300
  -26,145
EBITDA, $m
  -26
  -112
  -173
  -259
  -375
  -530
  -728
  -977
  -1,283
  -1,651
  -2,086
  -2,590
  -3,167
  -3,817
  -4,541
  -5,340
  -6,212
  -7,155
  -8,169
  -9,252
  -10,402
  -11,618
  -12,898
  -14,241
  -15,648
  -17,116
  -18,648
  -20,243
  -21,903
  -23,628
  -25,422
Interest expense (income), $m
  0
  0
  1
  3
  6
  10
  15
  21
  29
  39
  51
  64
  81
  99
  120
  143
  168
  196
  226
  259
  293
  330
  369
  410
  453
  498
  545
  594
  645
  698
  753
Earnings before tax, $m
  -28
  -115
  -179
  -269
  -392
  -554
  -764
  -1,026
  -1,349
  -1,737
  -2,196
  -2,728
  -3,337
  -4,024
  -4,790
  -5,635
  -6,557
  -7,555
  -8,628
  -9,774
  -10,991
  -12,278
  -13,634
  -15,056
  -16,545
  -18,101
  -19,723
  -21,412
  -23,170
  -24,998
  -26,898
Tax expense, $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
  0
Net income, $m
  -28
  -115
  -179
  -269
  -392
  -554
  -764
  -1,026
  -1,349
  -1,737
  -2,196
  -2,728
  -3,337
  -4,024
  -4,790
  -5,635
  -6,557
  -7,555
  -8,628
  -9,774
  -10,991
  -12,278
  -13,634
  -15,056
  -16,545
  -18,101
  -19,723
  -21,412
  -23,170
  -24,998
  -26,898

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  47
  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
  118
  114
  175
  262
  381
  537
  739
  991
  1,302
  1,675
  2,116
  2,627
  3,212
  3,872
  4,607
  5,416
  6,301
  7,258
  8,286
  9,385
  10,551
  11,784
  13,083
  14,446
  15,872
  17,362
  18,916
  20,534
  22,217
  23,967
  25,787
Adjusted assets (=assets-cash), $m
  71
  114
  175
  262
  381
  537
  739
  991
  1,302
  1,675
  2,116
  2,627
  3,212
  3,872
  4,607
  5,416
  6,301
  7,258
  8,286
  9,385
  10,551
  11,784
  13,083
  14,446
  15,872
  17,362
  18,916
  20,534
  22,217
  23,967
  25,787
Revenue / Adjusted assets
  0.817
  0.816
  0.817
  0.817
  0.816
  0.818
  0.816
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
  0.817
Average production assets, $m
  24
  38
  58
  87
  126
  178
  244
  328
  431
  554
  700
  869
  1,063
  1,281
  1,524
  1,792
  2,085
  2,402
  2,742
  3,105
  3,491
  3,899
  4,329
  4,780
  5,252
  5,745
  6,259
  6,794
  7,351
  7,930
  8,532
Working capital, $m
  26
  -34
  -52
  -78
  -113
  -159
  -218
  -293
  -385
  -495
  -626
  -777
  -950
  -1,145
  -1,362
  -1,602
  -1,863
  -2,147
  -2,451
  -2,776
  -3,121
  -3,485
  -3,869
  -4,272
  -4,694
  -5,135
  -5,594
  -6,073
  -6,571
  -7,088
  -7,626
Total debt, $m
  0
  38
  94
  172
  279
  420
  601
  828
  1,108
  1,444
  1,840
  2,301
  2,827
  3,421
  4,082
  4,811
  5,607
  6,468
  7,394
  8,382
  9,432
  10,542
  11,711
  12,937
  14,221
  15,562
  16,960
  18,416
  19,931
  21,507
  23,144
Total liabilities, $m
  65
  102
  158
  236
  343
  484
  665
  892
  1,172
  1,508
  1,904
  2,365
  2,891
  3,485
  4,146
  4,875
  5,671
  6,532
  7,458
  8,446
  9,496
  10,606
  11,775
  13,001
  14,285
  15,626
  17,024
  18,480
  19,995
  21,571
  23,208
Total equity, $m
  54
  11
  18
  26
  38
  54
  74
  99
  130
  168
  212
  263
  321
  387
  461
  542
  630
  726
  829
  938
  1,055
  1,178
  1,308
  1,445
  1,587
  1,736
  1,892
  2,053
  2,222
  2,397
  2,579
Total liabilities and equity, $m
  119
  113
  176
  262
  381
  538
  739
  991
  1,302
  1,676
  2,116
  2,628
  3,212
  3,872
  4,607
  5,417
  6,301
  7,258
  8,287
  9,384
  10,551
  11,784
  13,083
  14,446
  15,872
  17,362
  18,916
  20,533
  22,217
  23,968
  25,787
Debt-to-equity ratio
  0.000
  3.370
  5.350
  6.560
  7.320
  7.810
  8.130
  8.350
  8.510
  8.620
  8.700
  8.760
  8.800
  8.830
  8.860
  8.880
  8.900
  8.910
  8.920
  8.930
  8.940
  8.950
  8.950
  8.960
  8.960
  8.960
  8.970
  8.970
  8.970
  8.970
  8.980
Adjusted equity ratio
  0.099
  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
  -28
  -115
  -179
  -269
  -392
  -554
  -764
  -1,026
  -1,349
  -1,737
  -2,196
  -2,728
  -3,337
  -4,024
  -4,790
  -5,635
  -6,557
  -7,555
  -8,628
  -9,774
  -10,991
  -12,278
  -13,634
  -15,056
  -16,545
  -18,101
  -19,723
  -21,412
  -23,170
  -24,998
  -26,898
Depreciation, amort., depletion, $m
  2
  3
  5
  7
  11
  15
  21
  28
  37
  47
  59
  74
  90
  109
  129
  152
  177
  204
  232
  263
  296
  330
  367
  405
  445
  487
  530
  576
  623
  672
  723
Funds from operations, $m
  -57
  -112
  -174
  -262
  -381
  -539
  -743
  -998
  -1,312
  -1,690
  -2,136
  -2,655
  -3,247
  -3,916
  -4,661
  -5,483
  -6,380
  -7,351
  -8,396
  -9,511
  -10,695
  -11,948
  -13,267
  -14,651
  -16,100
  -17,614
  -19,193
  -20,837
  -22,547
  -24,326
  -26,175
Change in working capital, $m
  -17
  -13
  -18
  -26
  -35
  -46
  -60
  -75
  -92
  -110
  -130
  -151
  -173
  -195
  -217
  -240
  -262
  -283
  -304
  -325
  -345
  -365
  -384
  -403
  -422
  -441
  -459
  -479
  -498
  -518
  -538
Cash from operations, $m
  -40
  -99
  -156
  -236
  -346
  -493
  -683
  -924
  -1,221
  -1,580
  -2,006
  -2,503
  -3,074
  -3,721
  -4,444
  -5,243
  -6,118
  -7,068
  -8,091
  -9,186
  -10,350
  -11,583
  -12,883
  -14,248
  -15,678
  -17,173
  -18,733
  -20,358
  -22,049
  -23,808
  -25,636
Maintenance CAPEX, $m
  0
  -2
  -3
  -5
  -7
  -11
  -15
  -21
  -28
  -37
  -47
  -59
  -74
  -90
  -109
  -129
  -152
  -177
  -204
  -232
  -263
  -296
  -330
  -367
  -405
  -445
  -487
  -530
  -576
  -623
  -672
New CAPEX, $m
  -2
  -14
  -20
  -29
  -39
  -52
  -67
  -84
  -103
  -124
  -146
  -169
  -194
  -218
  -243
  -268
  -293
  -317
  -340
  -363
  -386
  -408
  -430
  -451
  -472
  -493
  -514
  -535
  -557
  -579
  -602
Cash from investing activities, $m
  -3
  -16
  -23
  -34
  -46
  -63
  -82
  -105
  -131
  -161
  -193
  -228
  -268
  -308
  -352
  -397
  -445
  -494
  -544
  -595
  -649
  -704
  -760
  -818
  -877
  -938
  -1,001
  -1,065
  -1,133
  -1,202
  -1,274
Free cash flow, $m
  -43
  -115
  -180
  -270
  -393
  -556
  -765
  -1,028
  -1,351
  -1,740
  -2,199
  -2,732
  -3,341
  -4,029
  -4,795
  -5,640
  -6,563
  -7,562
  -8,635
  -9,782
  -11,000
  -12,287
  -13,643
  -15,066
  -16,556
  -18,112
  -19,734
  -21,424
  -23,182
  -25,010
  -26,911
Issuance/(repayment) of debt, $m
  0
  38
  56
  78
  107
  141
  181
  228
  279
  336
  397
  460
  526
  594
  661
  729
  796
  861
  926
  989
  1,050
  1,110
  1,169
  1,226
  1,284
  1,341
  1,398
  1,456
  1,515
  1,575
  1,637
Issuance/(repurchase) of shares, $m
  33
  120
  185
  278
  404
  570
  784
  1,051
  1,380
  1,774
  2,240
  2,779
  3,396
  4,090
  4,864
  5,716
  6,645
  7,651
  8,731
  9,884
  11,108
  12,402
  13,763
  15,192
  16,688
  18,250
  19,878
  21,574
  23,339
  25,173
  27,080
Cash from financing (excl. dividends), $m  
  32
  158
  241
  356
  511
  711
  965
  1,279
  1,659
  2,110
  2,637
  3,239
  3,922
  4,684
  5,525
  6,445
  7,441
  8,512
  9,657
  10,873
  12,158
  13,512
  14,932
  16,418
  17,972
  19,591
  21,276
  23,030
  24,854
  26,748
  28,717
Total cash flow (excl. dividends), $m
  -11
  42
  61
  86
  118
  155
  200
  251
  308
  371
  438
  508
  581
  655
  730
  804
  878
  950
  1,021
  1,091
  1,158
  1,224
  1,289
  1,353
  1,416
  1,479
  1,543
  1,606
  1,671
  1,738
  1,806
Retained Cash Flow (-), $m
  -4
  -120
  -185
  -278
  -404
  -570
  -784
  -1,051
  -1,380
  -1,774
  -2,240
  -2,779
  -3,396
  -4,090
  -4,864
  -5,716
  -6,645
  -7,651
  -8,731
  -9,884
  -11,108
  -12,402
  -13,763
  -15,192
  -16,688
  -18,250
  -19,878
  -21,574
  -23,339
  -25,173
  -27,080
Prev. year cash balance distribution, $m
 
  47
  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
 
  -30
  -124
  -192
  -286
  -415
  -584
  -800
  -1,072
  -1,404
  -1,802
  -2,271
  -2,815
  -3,435
  -4,134
  -4,911
  -5,767
  -6,700
  -7,710
  -8,793
  -9,950
  -11,177
  -12,474
  -13,839
  -15,272
  -16,771
  -18,336
  -19,968
  -21,667
  -23,435
  -25,273
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  -29
  -114
  -167
  -236
  -321
  -424
  -541
  -670
  -806
  -945
  -1,079
  -1,201
  -1,306
  -1,388
  -1,442
  -1,466
  -1,458
  -1,420
  -1,354
  -1,264
  -1,156
  -1,035
  -907
  -778
  -652
  -535
  -429
  -335
  -256
  -190
Current shareholders' claim on cash, %
  100
  17.0
  3.0
  0.5
  0.1
  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
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Peregrine Pharmaceuticals, Inc. (Peregrine) is a biopharmaceutical company. The Company operates through two segments: Peregrine, which is engaged in the research and development of monoclonal antibodies for the treatment of cancer, and Avid, which is engaged in providing contract manufacturing services for third party customers on a fee-for-service basis while also supporting its internal drug development efforts. Bavituximab is its lead immunotherapy candidate. Bavituximab is a monoclonal antibody that targets and binds to phosphatidylserine (PS), a immunosuppressive molecule that is usually located inside the membrane of healthy cells, but then flips and becomes exposed on the outside of cells in the tumor microenvironment, causing the tumor to evade immune detection. The Company's subsidiary is Avid Bioservices, Inc. (Avid). Avid provides integrated current good manufacturing practices (cGMP) services from cell line development to commercial biomanufacturing.

FINANCIAL RATIOS  of  Peregrine Pharmaceuticals (PPHM)

Valuation Ratios
P/E Ratio -6.6
Price to Sales 3.2
Price to Book 3.4
Price to Tangible Book
Price to Cash Flow -4.6
Price to Free Cash Flow -4.4
Growth Rates
Sales Growth Rate 28.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -77.8%
Cap. Spend. - 3 Yr. Gr. Rate 14.9%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets -24.7%
Ret/ On Assets - 3 Yr. Avg. -44.1%
Return On Total Capital -53.8%
Ret/ On T. Cap. - 3 Yr. Avg. -78.4%
Return On Equity -53.8%
Return On Equity - 3 Yr. Avg. -78.4%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 32.8%
Gross Margin - 3 Yr. Avg. 40.8%
EBITDA Margin -44.8%
EBITDA Margin - 3 Yr. Avg. -115.4%
Operating Margin -48.3%
Oper. Margin - 3 Yr. Avg. -119.3%
Pre-Tax Margin -48.3%
Pre-Tax Margin - 3 Yr. Avg. -119.3%
Net Profit Margin -48.3%
Net Profit Margin - 3 Yr. Avg. -119.3%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio -14.3%

PPHM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PPHM stock intrinsic value calculation we used $58 million for the last fiscal year's total revenue generated by Peregrine Pharmaceuticals. The default revenue input number comes from 2017 income statement of Peregrine 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 PPHM 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 4.3%, whose default value for PPHM is calculated based on our internal credit rating of Peregrine 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 Peregrine 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 PPHM stock the variable cost ratio is equal to 224.1%.

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 PPHM 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 Peregrine Pharmaceuticals.

Corporate tax rate of 27% is the nominal tax rate for Peregrine 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 PPHM 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 PPHM are equal to 40.5%.

Life of production assets of 11.8 years is the average useful life of capital assets used in Peregrine 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 PPHM is equal to -36.2%. 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 - $54 million for Peregrine 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 45.096 million for Peregrine 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 Peregrine Pharmaceuticals at the current share price and the inputted number of shares is $0.2 billion.

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COMPANY NEWS

▶ Company News For Dec 13, 2017   [09:16AM  Zacks]
▶ 2 Stocks Fall Tuesday   [Dec-12-17 04:16PM  GuruFocus.com]
▶ Peregrine reports 2Q loss   [Dec-11-17 04:13PM  Associated Press]
▶ 3 Drug Stocks That Soared This Week: Are They Buys?   [Dec-02-17 10:33AM  Motley Fool]
▶ Peregrine reports 1Q loss   [Sep-11-17 07:54PM  Associated Press]
▶ Peregrine Provides Strategic Update   [Jul-31-17 08:30AM  GlobeNewswire]
▶ Peregrine reports 4Q loss   [Jul-14-17 09:51PM  Associated Press]
▶ Top 10 Penny Stocks To Buy in 2017   [Jun-29-17 12:26PM  Insider Monkey]
▶ Peregrine reports 3Q loss   [Mar-13-17 04:56PM  Associated Press]
▶ Peregrine Cancer Test Clears Proof of Concept   [Feb-10-17 12:43PM  at Investopedia]
▶ Heat Biologics to reap benefit of new biotech   [Jan-17-17 11:08AM  at bizjournals.com]
Financial statements of PPHM
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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