Intrinsic value of Akebia Therapeutics - AKBA

Previous Close

$7.92

  Intrinsic Value

$0.54

stock screener

  Rating & Target

str. sell

-93%

Previous close

$7.92

 
Intrinsic value

$0.54

 
Up/down potential

-93%

 
Rating

str. sell

We calculate the intrinsic value of AKBA 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 0001), $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 0.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  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
  285
  440
  658
  955
  1,347
  1,852
  2,486
  3,264
  4,200
  5,304
  6,587
  8,053
  9,707
  11,549
  13,580
  15,796
  18,196
  20,775
  23,529
  26,453
  29,545
  32,800
  36,217
  39,793
  43,529
  47,424
  51,480
  55,701
  60,089
  64,650
Variable operating expenses, $m
  5,120
  7,910
  11,829
  17,164
  24,215
  33,291
  44,686
  58,675
  75,501
  95,364
  118,420
  144,780
  174,508
  207,630
  244,136
  283,989
  327,132
  373,494
  423,002
  475,580
  531,159
  589,683
  651,106
  715,400
  782,555
  852,582
  925,508
  1,001,384
  1,080,277
  1,162,276
Fixed operating expenses, $m
  114
  117
  120
  122
  125
  128
  130
  133
  136
  139
  142
  145
  149
  152
  155
  159
  162
  166
  169
  173
  177
  181
  185
  189
  193
  197
  202
  206
  211
  215
Total operating expenses, $m
  5,234
  8,027
  11,949
  17,286
  24,340
  33,419
  44,816
  58,808
  75,637
  95,503
  118,562
  144,925
  174,657
  207,782
  244,291
  284,148
  327,294
  373,660
  423,171
  475,753
  531,336
  589,864
  651,291
  715,589
  782,748
  852,779
  925,710
  1,001,590
  1,080,488
  1,162,491
Operating income, $m
  -4,949
  -7,587
  -11,291
  -16,331
  -22,993
  -31,567
  -42,331
  -55,545
  -71,437
  -90,198
  -111,975
  -136,872
  -164,950
  -196,233
  -230,712
  -268,351
  -309,098
  -352,885
  -399,642
  -449,299
  -501,791
  -557,063
  -615,073
  -675,795
  -739,220
  -805,355
  -874,230
  -945,889
  -1,020,398
  -1,097,841
EBITDA, $m
  -4,948
  -7,585
  -11,289
  -16,328
  -22,989
  -31,560
  -42,322
  -55,534
  -71,423
  -90,180
  -111,953
  -136,845
  -164,917
  -196,194
  -230,666
  -268,298
  -309,036
  -352,814
  -399,562
  -449,209
  -501,691
  -556,952
  -614,950
  -675,660
  -739,072
  -805,194
  -874,055
  -945,700
  -1,020,194
  -1,097,621
Interest expense (income), $m
  0
  0
  2
  9
  21
  36
  56
  82
  114
  154
  202
  259
  324
  399
  484
  578
  682
  796
  919
  1,051
  1,192
  1,342
  1,500
  1,667
  1,842
  2,025
  2,216
  2,416
  2,623
  2,839
  3,064
Earnings before tax, $m
  -4,949
  -7,588
  -11,300
  -16,352
  -23,029
  -31,622
  -42,412
  -55,659
  -71,591
  -90,400
  -112,234
  -137,196
  -165,349
  -196,717
  -231,290
  -269,034
  -309,894
  -353,804
  -400,693
  -450,491
  -503,133
  -558,563
  -616,740
  -677,637
  -741,245
  -807,572
  -876,645
  -948,512
  -1,023,238
  -1,100,905
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
Net income, $m
  -4,949
  -7,588
  -11,300
  -16,352
  -23,029
  -31,622
  -42,412
  -55,659
  -71,591
  -90,400
  -112,234
  -137,196
  -165,349
  -196,717
  -231,290
  -269,034
  -309,894
  -353,804
  -400,693
  -450,491
  -503,133
  -558,563
  -616,740
  -677,637
  -741,245
  -807,572
  -876,645
  -948,512
  -1,023,238
  -1,100,905

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  300
  464
  693
  1,006
  1,419
  1,951
  2,619
  3,439
  4,425
  5,590
  6,941
  8,486
  10,228
  12,170
  14,310
  16,645
  19,174
  21,892
  24,793
  27,875
  31,133
  34,563
  38,163
  41,932
  45,868
  49,972
  54,247
  58,694
  63,318
  68,124
Adjusted assets (=assets-cash), $m
  300
  464
  693
  1,006
  1,419
  1,951
  2,619
  3,439
  4,425
  5,590
  6,941
  8,486
  10,228
  12,170
  14,310
  16,645
  19,174
  21,892
  24,793
  27,875
  31,133
  34,563
  38,163
  41,932
  45,868
  49,972
  54,247
  58,694
  63,318
  68,124
Revenue / Adjusted assets
  0.950
  0.948
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
  0.949
Average production assets, $m
  5
  7
  11
  16
  23
  31
  42
  55
  71
  90
  112
  137
  165
  196
  231
  269
  309
  353
  400
  450
  502
  558
  616
  676
  740
  806
  875
  947
  1,022
  1,099
Working capital, $m
  -161
  -249
  -372
  -539
  -761
  -1,046
  -1,404
  -1,844
  -2,373
  -2,997
  -3,722
  -4,550
  -5,484
  -6,525
  -7,673
  -8,925
  -10,281
  -11,738
  -13,294
  -14,946
  -16,693
  -18,532
  -20,462
  -22,483
  -24,594
  -26,794
  -29,086
  -31,471
  -33,950
  -36,527
Total debt, $m
  28
  176
  382
  664
  1,036
  1,514
  2,116
  2,854
  3,741
  4,789
  6,005
  7,396
  8,964
  10,711
  12,637
  14,739
  17,015
  19,461
  22,072
  24,846
  27,778
  30,865
  34,105
  37,497
  41,039
  44,733
  48,580
  52,583
  56,745
  61,070
Total liabilities, $m
  270
  417
  624
  905
  1,277
  1,756
  2,357
  3,095
  3,983
  5,031
  6,247
  7,637
  9,206
  10,953
  12,879
  14,981
  17,257
  19,702
  22,314
  25,088
  28,019
  31,107
  34,347
  37,738
  41,281
  44,975
  48,822
  52,825
  56,986
  61,312
Total equity, $m
  30
  46
  69
  101
  142
  195
  262
  344
  443
  559
  694
  849
  1,023
  1,217
  1,431
  1,665
  1,917
  2,189
  2,479
  2,788
  3,113
  3,456
  3,816
  4,193
  4,587
  4,997
  5,425
  5,869
  6,332
  6,812
Total liabilities and equity, $m
  300
  463
  693
  1,006
  1,419
  1,951
  2,619
  3,439
  4,426
  5,590
  6,941
  8,486
  10,229
  12,170
  14,310
  16,646
  19,174
  21,891
  24,793
  27,876
  31,132
  34,563
  38,163
  41,931
  45,868
  49,972
  54,247
  58,694
  63,318
  68,124
Debt-to-equity ratio
  0.950
  3.790
  5.510
  6.600
  7.300
  7.760
  8.080
  8.300
  8.450
  8.570
  8.650
  8.720
  8.760
  8.800
  8.830
  8.850
  8.870
  8.890
  8.900
  8.910
  8.920
  8.930
  8.940
  8.940
  8.950
  8.950
  8.960
  8.960
  8.960
  8.960
Adjusted equity ratio
  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
  -4,949
  -7,588
  -11,300
  -16,352
  -23,029
  -31,622
  -42,412
  -55,659
  -71,591
  -90,400
  -112,234
  -137,196
  -165,349
  -196,717
  -231,290
  -269,034
  -309,894
  -353,804
  -400,693
  -450,491
  -503,133
  -558,563
  -616,740
  -677,637
  -741,245
  -807,572
  -876,645
  -948,512
  -1,023,238
  -1,100,905
Depreciation, amort., depletion, $m
  1
  1
  2
  3
  5
  6
  8
  11
  14
  18
  22
  27
  33
  39
  46
  54
  62
  71
  80
  90
  100
  112
  123
  135
  148
  161
  175
  189
  204
  220
Funds from operations, $m
  -4,948
  -7,587
  -11,298
  -16,349
  -23,025
  -31,616
  -42,404
  -55,648
  -71,577
  -90,382
  -112,212
  -137,169
  -165,316
  -196,678
  -231,244
  -268,980
  -309,832
  -353,733
  -400,613
  -450,401
  -503,033
  -558,452
  -616,617
  -677,502
  -741,097
  -807,410
  -876,470
  -948,323
  -1,023,034
  -1,100,686
Change in working capital, $m
  -60
  -88
  -123
  -168
  -222
  -285
  -358
  -440
  -529
  -624
  -725
  -828
  -934
  -1,041
  -1,147
  -1,252
  -1,356
  -1,457
  -1,556
  -1,652
  -1,747
  -1,839
  -1,930
  -2,021
  -2,111
  -2,201
  -2,292
  -2,385
  -2,479
  -2,577
Cash from operations, $m
  -4,888
  -7,499
  -11,175
  -16,181
  -22,803
  -31,331
  -42,046
  -55,208
  -71,048
  -89,758
  -111,487
  -136,340
  -164,382
  -195,637
  -230,097
  -267,728
  -308,476
  -352,276
  -399,057
  -448,749
  -501,286
  -556,613
  -614,687
  -675,481
  -738,986
  -805,210
  -874,178
  -945,938
  -1,020,554
  -1,098,109
Maintenance CAPEX, $m
  -1
  -1
  -1
  -2
  -3
  -5
  -6
  -8
  -11
  -14
  -18
  -22
  -27
  -33
  -39
  -46
  -54
  -62
  -71
  -80
  -90
  -100
  -112
  -123
  -135
  -148
  -161
  -175
  -189
  -204
New CAPEX, $m
  -2
  -3
  -4
  -5
  -7
  -9
  -11
  -13
  -16
  -19
  -22
  -25
  -28
  -31
  -35
  -38
  -41
  -44
  -47
  -50
  -53
  -55
  -58
  -61
  -64
  -66
  -69
  -72
  -75
  -78
Cash from investing activities, $m
  -3
  -4
  -5
  -7
  -10
  -14
  -17
  -21
  -27
  -33
  -40
  -47
  -55
  -64
  -74
  -84
  -95
  -106
  -118
  -130
  -143
  -155
  -170
  -184
  -199
  -214
  -230
  -247
  -264
  -282
Free cash flow, $m
  -4,890
  -7,503
  -11,180
  -16,188
  -22,813
  -31,344
  -42,063
  -55,230
  -71,075
  -89,791
  -111,527
  -136,388
  -164,438
  -195,701
  -230,171
  -267,812
  -308,570
  -352,382
  -399,175
  -448,879
  -501,428
  -556,768
  -614,856
  -675,665
  -739,185
  -805,424
  -874,409
  -946,185
  -1,020,818
  -1,098,390
Issuance/(repayment) of debt, $m
  28
  147
  207
  281
  372
  479
  601
  738
  888
  1,048
  1,216
  1,391
  1,568
  1,747
  1,926
  2,102
  2,276
  2,446
  2,612
  2,774
  2,932
  3,087
  3,240
  3,392
  3,543
  3,694
  3,847
  4,003
  4,162
  4,326
Issuance/(repurchase) of shares, $m
  5,033
  7,605
  11,323
  16,383
  23,071
  31,676
  42,479
  55,741
  71,690
  90,517
  112,369
  137,351
  165,524
  196,911
  231,504
  269,267
  310,147
  354,076
  400,983
  450,799
  503,459
  558,906
  617,100
  678,014
  741,638
  807,982
  877,073
  948,957
  1,023,700
  1,101,386
Cash from financing (excl. dividends), $m  
  5,061
  7,752
  11,530
  16,664
  23,443
  32,155
  43,080
  56,479
  72,578
  91,565
  113,585
  138,742
  167,092
  198,658
  233,430
  271,369
  312,423
  356,522
  403,595
  453,573
  506,391
  561,993
  620,340
  681,406
  745,181
  811,676
  880,920
  952,960
  1,027,862
  1,105,712
Total cash flow (excl. dividends), $m
  171
  249
  350
  476
  630
  810
  1,017
  1,249
  1,502
  1,773
  2,059
  2,353
  2,654
  2,957
  3,259
  3,558
  3,852
  4,139
  4,420
  4,694
  4,962
  5,225
  5,484
  5,740
  5,996
  6,252
  6,511
  6,774
  7,044
  7,321
Retained Cash Flow (-), $m
  -5,033
  -7,605
  -11,323
  -16,383
  -23,071
  -31,676
  -42,479
  -55,741
  -71,690
  -90,517
  -112,369
  -137,351
  -165,524
  -196,911
  -231,504
  -269,267
  -310,147
  -354,076
  -400,983
  -450,799
  -503,459
  -558,906
  -617,100
  -678,014
  -741,638
  -807,982
  -877,073
  -948,957
  -1,023,700
  -1,101,386
Prev. year cash balance distribution, $m
  177
  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
  -4,685
  -7,356
  -10,973
  -15,907
  -22,441
  -30,865
  -41,462
  -54,492
  -70,188
  -88,743
  -110,310
  -134,997
  -162,869
  -193,954
  -228,245
  -265,709
  -306,295
  -349,936
  -396,563
  -446,105
  -498,496
  -553,681
  -611,616
  -672,274
  -735,642
  -801,730
  -870,562
  -942,183
  -1,016,656
  -1,094,065
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
  -4,492
  -6,734
  -9,550
  -13,098
  -17,394
  -22,400
  -28,011
  -34,059
  -40,319
  -46,525
  -52,385
  -57,608
  -61,926
  -65,114
  -67,009
  -67,522
  -66,645
  -64,444
  -61,059
  -56,686
  -51,561
  -45,941
  -40,086
  -34,240
  -28,617
  -23,390
  -18,685
  -14,577
  -11,098
  -8,238
Current shareholders' claim on cash, %
  50.0
  0.7
  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
  0.0

Akebia Therapeutics, Inc. is a biopharmaceutical company. The Company focuses on the development and commercialization of therapeutics based on hypoxia-inducible factor (HIF) biology. The Company's lead product candidate, vadadustat, is indicated for the treatment of anemia in chronic kidney disease (CKD). It is involved in developing vadadustat as an oral therapy. The Company's vadadustat is a HIF-prolyl-hydroxylase (HIF-PH) inhibitor in Phase III development for the treatment of anemia of CKD. In addition to vadadustat, the Company is engaged in developing a HIF-based portfolio of product candidates that target serious diseases of unmet need. Its portfolio includes product candidates developed internally, such as AKB-6899, as well as in-licensed product candidates, including AKB-5169. AKB-5169 is a preclinical compound in development as an oral treatment for inflammatory bowel disease (IBD).

FINANCIAL RATIOS  of  Akebia Therapeutics (AKBA)

Valuation Ratios
P/E Ratio -2.2
Price to Sales 152.9
Price to Book 4.5
Price to Tangible Book
Price to Cash Flow 5.3
Price to Free Cash Flow 5.6
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
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 -61.4%
Ret/ On Assets - 3 Yr. Avg. -53.4%
Return On Total Capital -136.7%
Ret/ On T. Cap. - 3 Yr. Avg. -81.1%
Return On Equity -136.7%
Return On Equity - 3 Yr. Avg. -81.1%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin -6800%
EBITDA Margin - 3 Yr. Avg. -2266.7%
Operating Margin -6800%
Oper. Margin - 3 Yr. Avg. -2266.7%
Pre-Tax Margin -6800%
Pre-Tax Margin - 3 Yr. Avg. -2266.7%
Net Profit Margin -6800%
Net Profit Margin - 3 Yr. Avg. -2266.7%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

AKBA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AKBA stock intrinsic value calculation we used $177.984 million for the last fiscal year's total revenue generated by Akebia Therapeutics. The default revenue input number comes from 0001 income statement of Akebia 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 AKBA 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 AKBA is calculated based on our internal credit rating of Akebia 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 Akebia 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 AKBA stock the variable cost ratio is equal to 1797.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $112 million in the base year in the intrinsic value calculation for AKBA 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 5.4% for Akebia Therapeutics.

Corporate tax rate of 27% is the nominal tax rate for Akebia 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 AKBA 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 AKBA are equal to 1.7%.

Life of production assets of 5 years is the average useful life of capital assets used in Akebia 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 AKBA is equal to -56.5%. 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 - $122.574 million for Akebia 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 56.883 million for Akebia 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 Akebia Therapeutics at the current share price and the inputted number of shares is $0.5 billion.

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COMPANY NEWS

▶ David Abrams Buys 3 Stocks in 3rd Quarter   [Nov-14-18 12:11PM  GuruFocus.com]
▶ Akebia Therapeutics Sends Letter to Shareholders   [Nov-13-18 04:05PM  Business Wire]
▶ Akebia Therapeutics: 3Q Earnings Snapshot   [04:36PM  Associated Press]
▶ 5 Healthcare Stocks That Are Down, But Not Out!   [Aug-29-18 11:52AM  InvestorPlace]
▶ Akebia Therapeutics: 2Q Earnings Snapshot   [06:19PM  Associated Press]
▶ 7 Health Care Stocks to Buy for Robust Returns   [Jul-30-18 02:00PM  Kiplinger]
▶ WeissLaw LLP Investigates Keryx Biopharmaceuticals Inc.   [Jun-29-18 07:12PM  PR Newswire]
▶ Akebia Therapeutics: 1Q Earnings Snapshot   [May-09-18 05:16PM  Associated Press]
▶ Akebia Therapeutics posts 4Q profit   [Mar-12-18 04:29PM  Associated Press]
▶ GlycoMimetics (GLYC) Jumps: Stock Rises 11.9%   [Nov-28-17 08:36AM  Zacks]
▶ Newly public Cincinnati firm names new CFO   [Nov-14-17 12:25PM  American City Business Journals]
▶ Akebia Therapeutics reports 3Q loss   [Nov-08-17 05:33PM  Associated Press]
▶ Akebia Therapeutics reports 2Q loss   [Aug-08-17 11:04PM  Associated Press]

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