Intrinsic value of Alnylam Pharmaceuticals - ALNY

Previous Close

$69.37

  Intrinsic Value

$4.39

stock screener

  Rating & Target

str. sell

-94%

Previous close

$69.37

 
Intrinsic value

$4.39

 
Up/down potential

-94%

 
Rating

str. sell

We calculate the intrinsic value of ALNY 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 7.0

 

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
  144
  222
  332
  482
  680
  935
  1,256
  1,649
  2,122
  2,680
  3,328
  4,068
  4,904
  5,834
  6,860
  7,980
  9,192
  10,495
  11,886
  13,363
  14,925
  16,570
  18,296
  20,102
  21,989
  23,957
  26,006
  28,138
  30,355
  32,659
Variable operating expenses, $m
  396
  613
  916
  1,329
  1,875
  2,578
  3,461
  4,544
  5,847
  7,385
  9,171
  11,212
  13,514
  16,079
  18,906
  21,993
  25,334
  28,924
  32,758
  36,830
  41,134
  45,666
  50,423
  55,402
  60,602
  66,025
  71,673
  77,549
  83,658
  90,009
Fixed operating expenses, $m
  358
  366
  374
  382
  390
  399
  408
  417
  426
  435
  445
  454
  464
  475
  485
  496
  507
  518
  529
  541
  553
  565
  577
  590
  603
  616
  630
  644
  658
  672
Total operating expenses, $m
  754
  979
  1,290
  1,711
  2,265
  2,977
  3,869
  4,961
  6,273
  7,820
  9,616
  11,666
  13,978
  16,554
  19,391
  22,489
  25,841
  29,442
  33,287
  37,371
  41,687
  46,231
  51,000
  55,992
  61,205
  66,641
  72,303
  78,193
  84,316
  90,681
Operating income, $m
  -610
  -756
  -957
  -1,229
  -1,585
  -2,041
  -2,612
  -3,312
  -4,151
  -5,141
  -6,288
  -7,598
  -9,075
  -10,720
  -12,531
  -14,508
  -16,648
  -18,947
  -21,401
  -24,007
  -26,761
  -29,661
  -32,704
  -35,890
  -39,216
  -42,685
  -46,297
  -50,054
  -53,961
  -58,022
EBITDA, $m
  -589
  -723
  -908
  -1,157
  -1,484
  -1,903
  -2,426
  -3,067
  -3,836
  -4,743
  -5,794
  -6,995
  -8,348
  -9,854
  -11,513
  -13,324
  -15,284
  -17,390
  -19,637
  -22,024
  -24,547
  -27,203
  -29,990
  -32,907
  -35,953
  -39,130
  -42,438
  -45,879
  -49,457
  -53,176
Interest expense (income), $m
  1
  2
  9
  20
  35
  55
  82
  117
  161
  215
  279
  356
  444
  546
  660
  787
  927
  1,081
  1,246
  1,424
  1,615
  1,817
  2,030
  2,255
  2,491
  2,738
  2,996
  3,265
  3,546
  3,837
  4,140
Earnings before tax, $m
  -612
  -765
  -977
  -1,263
  -1,640
  -2,124
  -2,730
  -3,473
  -4,366
  -5,420
  -6,644
  -8,043
  -9,621
  -11,379
  -13,318
  -15,436
  -17,729
  -20,193
  -22,826
  -25,622
  -28,578
  -31,692
  -34,960
  -38,381
  -41,954
  -45,681
  -49,562
  -53,600
  -57,798
  -62,162
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
  -612
  -765
  -977
  -1,263
  -1,640
  -2,124
  -2,730
  -3,473
  -4,366
  -5,420
  -6,644
  -8,043
  -9,621
  -11,379
  -13,318
  -15,436
  -17,729
  -20,193
  -22,826
  -25,622
  -28,578
  -31,692
  -34,960
  -38,381
  -41,954
  -45,681
  -49,562
  -53,600
  -57,798
  -62,162

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
  716
  1,106
  1,654
  2,399
  3,385
  4,654
  6,247
  8,203
  10,555
  13,332
  16,555
  20,240
  24,396
  29,026
  34,130
  39,701
  45,732
  52,214
  59,135
  66,485
  74,255
  82,436
  91,023
  100,011
  109,399
  119,189
  129,384
  139,991
  151,020
  162,483
Adjusted assets (=assets-cash), $m
  716
  1,106
  1,654
  2,399
  3,385
  4,654
  6,247
  8,203
  10,555
  13,332
  16,555
  20,240
  24,396
  29,026
  34,130
  39,701
  45,732
  52,214
  59,135
  66,485
  74,255
  82,436
  91,023
  100,011
  109,399
  119,189
  129,384
  139,991
  151,020
  162,483
Revenue / Adjusted assets
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
  0.201
Average production assets, $m
  237
  366
  547
  794
  1,121
  1,541
  2,068
  2,715
  3,494
  4,413
  5,480
  6,700
  8,076
  9,609
  11,299
  13,143
  15,140
  17,285
  19,576
  22,010
  24,582
  27,290
  30,133
  33,108
  36,216
  39,457
  42,832
  46,344
  49,995
  53,790
Working capital, $m
  -112
  -173
  -259
  -376
  -530
  -729
  -978
  -1,284
  -1,653
  -2,087
  -2,592
  -3,169
  -3,820
  -4,545
  -5,344
  -6,216
  -7,161
  -8,176
  -9,259
  -10,410
  -11,627
  -12,908
  -14,252
  -15,660
  -17,130
  -18,662
  -20,259
  -21,920
  -23,647
  -25,441
Total debt, $m
  166
  365
  643
  1,023
  1,525
  2,171
  2,981
  3,977
  5,174
  6,587
  8,228
  10,104
  12,219
  14,576
  17,174
  20,010
  23,079
  26,378
  29,901
  33,642
  37,597
  41,762
  46,132
  50,707
  55,486
  60,469
  65,658
  71,057
  76,671
  82,506
Total liabilities, $m
  364
  563
  842
  1,221
  1,723
  2,369
  3,180
  4,175
  5,372
  6,786
  8,426
  10,302
  12,417
  14,774
  17,372
  20,208
  23,278
  26,577
  30,100
  33,841
  37,796
  41,960
  46,331
  50,906
  55,684
  60,667
  65,856
  71,255
  76,869
  82,704
Total equity, $m
  351
  543
  812
  1,178
  1,662
  2,285
  3,067
  4,027
  5,182
  6,546
  8,128
  9,938
  11,978
  14,252
  16,758
  19,493
  22,455
  25,637
  29,035
  32,644
  36,459
  40,476
  44,692
  49,105
  53,715
  58,522
  63,527
  68,736
  74,151
  79,779
Total liabilities and equity, $m
  715
  1,106
  1,654
  2,399
  3,385
  4,654
  6,247
  8,202
  10,554
  13,332
  16,554
  20,240
  24,395
  29,026
  34,130
  39,701
  45,733
  52,214
  59,135
  66,485
  74,255
  82,436
  91,023
  100,011
  109,399
  119,189
  129,383
  139,991
  151,020
  162,483
Debt-to-equity ratio
  0.470
  0.670
  0.790
  0.870
  0.920
  0.950
  0.970
  0.990
  1.000
  1.010
  1.010
  1.020
  1.020
  1.020
  1.020
  1.030
  1.030
  1.030
  1.030
  1.030
  1.030
  1.030
  1.030
  1.030
  1.030
  1.030
  1.030
  1.030
  1.030
  1.030
Adjusted equity ratio
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491
  0.491

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -612
  -765
  -977
  -1,263
  -1,640
  -2,124
  -2,730
  -3,473
  -4,366
  -5,420
  -6,644
  -8,043
  -9,621
  -11,379
  -13,318
  -15,436
  -17,729
  -20,193
  -22,826
  -25,622
  -28,578
  -31,692
  -34,960
  -38,381
  -41,954
  -45,681
  -49,562
  -53,600
  -57,798
  -62,162
Depreciation, amort., depletion, $m
  21
  33
  49
  72
  101
  139
  186
  245
  315
  398
  494
  604
  728
  866
  1,018
  1,184
  1,364
  1,557
  1,764
  1,983
  2,215
  2,459
  2,715
  2,983
  3,263
  3,555
  3,859
  4,175
  4,504
  4,846
Funds from operations, $m
  -591
  -732
  -928
  -1,192
  -1,539
  -1,985
  -2,543
  -3,228
  -4,051
  -5,022
  -6,150
  -7,439
  -8,893
  -10,514
  -12,301
  -14,252
  -16,365
  -18,636
  -21,062
  -23,639
  -26,364
  -29,233
  -32,245
  -35,398
  -38,692
  -42,126
  -45,703
  -49,425
  -53,294
  -57,316
Change in working capital, $m
  -42
  -61
  -86
  -117
  -154
  -199
  -249
  -306
  -368
  -435
  -505
  -577
  -651
  -725
  -799
  -872
  -944
  -1,015
  -1,084
  -1,151
  -1,217
  -1,281
  -1,345
  -1,407
  -1,470
  -1,533
  -1,596
  -1,661
  -1,727
  -1,795
Cash from operations, $m
  -549
  -671
  -842
  -1,075
  -1,385
  -1,786
  -2,294
  -2,922
  -3,683
  -4,588
  -5,645
  -6,862
  -8,242
  -9,789
  -11,501
  -13,379
  -15,420
  -17,621
  -19,978
  -22,488
  -25,147
  -27,952
  -30,900
  -33,991
  -37,222
  -40,593
  -44,107
  -47,764
  -51,567
  -55,521
Maintenance CAPEX, $m
  -13
  -21
  -33
  -49
  -72
  -101
  -139
  -186
  -245
  -315
  -398
  -494
  -604
  -728
  -866
  -1,018
  -1,184
  -1,364
  -1,557
  -1,764
  -1,983
  -2,215
  -2,459
  -2,715
  -2,983
  -3,263
  -3,555
  -3,859
  -4,175
  -4,504
New CAPEX, $m
  -89
  -129
  -181
  -247
  -326
  -420
  -527
  -647
  -779
  -919
  -1,067
  -1,220
  -1,376
  -1,533
  -1,689
  -1,844
  -1,997
  -2,146
  -2,291
  -2,433
  -2,572
  -2,708
  -2,843
  -2,976
  -3,108
  -3,241
  -3,375
  -3,511
  -3,651
  -3,795
Cash from investing activities, $m
  -102
  -150
  -214
  -296
  -398
  -521
  -666
  -833
  -1,024
  -1,234
  -1,465
  -1,714
  -1,980
  -2,261
  -2,555
  -2,862
  -3,181
  -3,510
  -3,848
  -4,197
  -4,555
  -4,923
  -5,302
  -5,691
  -6,091
  -6,504
  -6,930
  -7,370
  -7,826
  -8,299
Free cash flow, $m
  -651
  -821
  -1,056
  -1,371
  -1,783
  -2,307
  -2,960
  -3,756
  -4,706
  -5,822
  -7,110
  -8,576
  -10,222
  -12,049
  -14,057
  -16,242
  -18,601
  -21,131
  -23,827
  -26,685
  -29,702
  -32,875
  -36,202
  -39,681
  -43,312
  -47,097
  -51,037
  -55,134
  -59,394
  -63,820
Issuance/(repayment) of debt, $m
  136
  199
  279
  380
  502
  646
  811
  995
  1,197
  1,413
  1,641
  1,876
  2,115
  2,357
  2,598
  2,836
  3,070
  3,299
  3,523
  3,741
  3,955
  4,164
  4,371
  4,575
  4,779
  4,983
  5,189
  5,399
  5,614
  5,835
Issuance/(repurchase) of shares, $m
  743
  956
  1,246
  1,630
  2,124
  2,747
  3,512
  4,433
  5,521
  6,783
  8,226
  9,852
  11,661
  13,653
  15,824
  18,171
  20,690
  23,376
  26,224
  29,231
  32,393
  35,709
  39,176
  42,794
  46,564
  50,488
  54,568
  58,808
  63,214
  67,790
Cash from financing (excl. dividends), $m  
  879
  1,155
  1,525
  2,010
  2,626
  3,393
  4,323
  5,428
  6,718
  8,196
  9,867
  11,728
  13,776
  16,010
  18,422
  21,007
  23,760
  26,675
  29,747
  32,972
  36,348
  39,873
  43,547
  47,369
  51,343
  55,471
  59,757
  64,207
  68,828
  73,625
Total cash flow (excl. dividends), $m
  229
  334
  469
  638
  843
  1,085
  1,363
  1,673
  2,012
  2,375
  2,757
  3,152
  3,555
  3,961
  4,365
  4,765
  5,159
  5,544
  5,920
  6,287
  6,646
  6,998
  7,345
  7,688
  8,030
  8,374
  8,720
  9,073
  9,434
  9,805
Retained Cash Flow (-), $m
  -743
  -956
  -1,246
  -1,630
  -2,124
  -2,747
  -3,512
  -4,433
  -5,521
  -6,783
  -8,226
  -9,852
  -11,661
  -13,653
  -15,824
  -18,171
  -20,690
  -23,376
  -26,224
  -29,231
  -32,393
  -35,709
  -39,176
  -42,794
  -46,564
  -50,488
  -54,568
  -58,808
  -63,214
  -67,790
Prev. year cash balance distribution, $m
  1,546
  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
  1,032
  -623
  -777
  -992
  -1,281
  -1,662
  -2,149
  -2,760
  -3,509
  -4,408
  -5,469
  -6,700
  -8,106
  -9,692
  -11,459
  -13,406
  -15,531
  -17,832
  -20,304
  -22,944
  -25,747
  -28,711
  -31,831
  -35,106
  -38,534
  -42,114
  -45,847
  -49,735
  -53,780
  -57,985
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
  989
  -570
  -676
  -817
  -993
  -1,206
  -1,452
  -1,725
  -2,016
  -2,311
  -2,597
  -2,859
  -3,082
  -3,254
  -3,364
  -3,407
  -3,379
  -3,284
  -3,126
  -2,915
  -2,663
  -2,382
  -2,086
  -1,788
  -1,499
  -1,229
  -984
  -769
  -587
  -437
Current shareholders' claim on cash, %
  53.9
  31.9
  20.2
  13.4
  9.2
  6.5
  4.7
  3.4
  2.5
  1.9
  1.4
  1.1
  0.9
  0.7
  0.5
  0.4
  0.3
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0

Alnylam Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is engaged in the discovery, development and commercialization of ribonucleic acid (RNA) interference (RNAi) therapeutics. The Company is focused on the use of its N-acetylgalactosamine (GalNAc)-conjugate platform for delivery of small interfering RNAs (siRNAs). Its pipeline of investigational RNAi therapeutics focuses on three Strategic Therapeutic Areas (STArs): Genetic Medicines, with multiple product candidates for the treatment of rare diseases; Cardio-Metabolic Diseases, with product candidates directed toward genetically validated, liver-expressed disease targets for unmet needs in cardiovascular and metabolic diseases, and Hepatic Infectious Diseases, with product candidates designed to address the global health challenges of hepatic infectious diseases, beginning with hepatitis B and hepatitis D viral infections. The Company's lead product, Patisiran, is formulated utilizing lipid nanoparticles (LNPs).

FINANCIAL RATIOS  of  Alnylam Pharmaceuticals (ALNY)

Valuation Ratios
P/E Ratio -14.5
Price to Sales 126.8
Price to Book 6.5
Price to Tangible Book
Price to Cash Flow -19.4
Price to Free Cash Flow -16
Growth Rates
Sales Growth Rate 14.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 400%
Cap. Spend. - 3 Yr. Gr. Rate 74.7%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 16.3%
Total Debt to Equity 16.3%
Interest Coverage -409
Management Effectiveness
Return On Assets -30.9%
Ret/ On Assets - 3 Yr. Avg. -34.1%
Return On Total Capital -35.1%
Ret/ On T. Cap. - 3 Yr. Avg. -40.4%
Return On Equity -37.5%
Return On Equity - 3 Yr. Avg. -41.2%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin -838.3%
EBITDA Margin - 3 Yr. Avg. -754%
Operating Margin -904.3%
Oper. Margin - 3 Yr. Avg. -806.8%
Pre-Tax Margin -872.3%
Pre-Tax Margin - 3 Yr. Avg. -788.6%
Net Profit Margin -872.3%
Net Profit Margin - 3 Yr. Avg. -761.8%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 3.4%
Payout Ratio 0%

ALNY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ALNY stock intrinsic value calculation we used $89.912 million for the last fiscal year's total revenue generated by Alnylam Pharmaceuticals. The default revenue input number comes from 0001 income statement of Alnylam 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 ALNY 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 ALNY is calculated based on our internal credit rating of Alnylam 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 Alnylam 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 ALNY stock the variable cost ratio is equal to 275.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $350 million in the base year in the intrinsic value calculation for ALNY 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 Alnylam Pharmaceuticals.

Corporate tax rate of 27% is the nominal tax rate for Alnylam 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 ALNY 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 ALNY are equal to 164.7%.

Life of production assets of 11.1 years is the average useful life of capital assets used in Alnylam 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 ALNY is equal to -77.9%. 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 - $1766.431 million for Alnylam 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 100.522 million for Alnylam 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 Alnylam Pharmaceuticals at the current share price and the inputted number of shares is $7.0 billion.

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COMPANY NEWS

▶ Alnylam Pharmaceuticals Launches Onpattro   [03:35PM  Motley Fool]
▶ Alnylam shares take a hit amid sluggish sales of first drug   [11:33AM  American City Business Journals]
▶ Alnylam: 3Q Earnings Snapshot   [09:09AM  Associated Press]
▶ Big Cap 20 Biotech Stock Dives On Mixed Third-Quarter Revenue   [04:41PM  Investor's Business Daily]

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