Intrinsic value of Alexion Pharmaceuticals - ALXN

Previous Close

$135.16

  Intrinsic Value

$12.92

stock screener

  Rating & Target

str. sell

-90%

Previous close

$135.16

 
Intrinsic value

$12.92

 
Up/down potential

-90%

 
Rating

str. sell

We calculate the intrinsic value of ALXN 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 30.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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, %
  15.10
  14.09
  13.18
  12.36
  11.63
  10.96
  10.37
  9.83
  9.35
  8.91
  8.52
  8.17
  7.85
  7.57
  7.31
  7.08
  6.87
  6.68
  6.52
  6.36
  6.23
  6.11
  5.99
  5.90
  5.81
  5.73
  5.65
  5.59
  5.53
  5.48
Revenue, $m
  4,087
  4,663
  5,278
  5,930
  6,620
  7,345
  8,107
  8,904
  9,736
  10,604
  11,508
  12,448
  13,425
  14,441
  15,497
  16,594
  17,734
  18,920
  20,153
  21,435
  22,770
  24,160
  25,609
  27,118
  28,693
  30,335
  32,050
  33,841
  35,712
  37,667
Variable operating expenses, $m
  3,020
  3,318
  3,637
  3,976
  4,333
  4,710
  5,105
  5,518
  5,950
  6,400
  5,970
  6,458
  6,965
  7,492
  8,039
  8,609
  9,200
  9,815
  10,455
  11,120
  11,813
  12,534
  13,285
  14,068
  14,885
  15,737
  16,627
  17,556
  18,526
  19,541
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
  3,020
  3,318
  3,637
  3,976
  4,333
  4,710
  5,105
  5,518
  5,950
  6,400
  5,970
  6,458
  6,965
  7,492
  8,039
  8,609
  9,200
  9,815
  10,455
  11,120
  11,813
  12,534
  13,285
  14,068
  14,885
  15,737
  16,627
  17,556
  18,526
  19,541
Operating income, $m
  1,068
  1,345
  1,641
  1,955
  2,286
  2,636
  3,002
  3,386
  3,786
  4,204
  5,538
  5,990
  6,461
  6,950
  7,458
  7,986
  8,534
  9,105
  9,698
  10,315
  10,958
  11,627
  12,324
  13,050
  13,808
  14,598
  15,423
  16,285
  17,185
  18,126
EBITDA, $m
  3,158
  3,603
  4,078
  4,582
  5,115
  5,675
  6,264
  6,879
  7,523
  8,193
  8,891
  9,618
  10,373
  11,158
  11,973
  12,821
  13,702
  14,618
  15,570
  16,561
  17,593
  18,667
  19,786
  20,952
  22,169
  23,438
  24,763
  26,146
  27,592
  29,103
Interest expense (income), $m
  80
  165
  202
  242
  284
  329
  376
  426
  478
  533
  590
  650
  712
  776
  843
  913
  986
  1,061
  1,139
  1,221
  1,306
  1,394
  1,485
  1,581
  1,680
  1,784
  1,892
  2,005
  2,123
  2,246
  2,374
Earnings before tax, $m
  902
  1,143
  1,399
  1,671
  1,958
  2,260
  2,576
  2,908
  3,253
  3,614
  4,888
  5,279
  5,684
  6,106
  6,544
  7,000
  7,473
  7,965
  8,477
  9,010
  9,564
  10,141
  10,743
  11,370
  12,024
  12,706
  13,418
  14,162
  14,940
  15,752
Tax expense, $m
  244
  309
  378
  451
  529
  610
  696
  785
  878
  976
  1,320
  1,425
  1,535
  1,649
  1,767
  1,890
  2,018
  2,151
  2,289
  2,433
  2,582
  2,738
  2,901
  3,070
  3,246
  3,431
  3,623
  3,824
  4,034
  4,253
Net income, $m
  659
  834
  1,021
  1,220
  1,429
  1,650
  1,881
  2,123
  2,375
  2,638
  3,568
  3,853
  4,150
  4,457
  4,777
  5,110
  5,455
  5,815
  6,188
  6,577
  6,982
  7,403
  7,842
  8,300
  8,777
  9,275
  9,795
  10,338
  10,906
  11,499

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
  15,026
  17,144
  19,403
  21,802
  24,337
  27,005
  29,805
  32,735
  35,795
  38,986
  42,308
  45,764
  49,358
  53,093
  56,974
  61,008
  65,200
  69,558
  74,091
  78,806
  83,714
  88,825
  94,150
  99,700
  105,488
  111,527
  117,832
  124,415
  131,294
  138,483
Adjusted assets (=assets-cash), $m
  15,026
  17,144
  19,403
  21,802
  24,337
  27,005
  29,805
  32,735
  35,795
  38,986
  42,308
  45,764
  49,358
  53,093
  56,974
  61,008
  65,200
  69,558
  74,091
  78,806
  83,714
  88,825
  94,150
  99,700
  105,488
  111,527
  117,832
  124,415
  131,294
  138,483
Revenue / Adjusted assets
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
  0.272
Average production assets, $m
  11,910
  13,588
  15,379
  17,281
  19,290
  21,405
  23,624
  25,946
  28,372
  30,900
  33,534
  36,273
  39,122
  42,082
  45,158
  48,355
  51,678
  55,132
  58,725
  62,462
  66,352
  70,403
  74,624
  79,023
  83,611
  88,398
  93,394
  98,613
  104,064
  109,763
Working capital, $m
  450
  513
  581
  652
  728
  808
  892
  979
  1,071
  1,166
  1,266
  1,369
  1,477
  1,589
  1,705
  1,825
  1,951
  2,081
  2,217
  2,358
  2,505
  2,658
  2,817
  2,983
  3,156
  3,337
  3,526
  3,723
  3,928
  4,143
Total debt, $m
  3,740
  4,472
  5,254
  6,084
  6,961
  7,885
  8,853
  9,867
  10,926
  12,030
  13,179
  14,375
  15,619
  16,911
  18,254
  19,649
  21,100
  22,608
  24,176
  25,808
  27,506
  29,274
  31,116
  33,037
  35,040
  37,129
  39,310
  41,588
  43,968
  46,456
Total liabilities, $m
  5,199
  5,932
  6,714
  7,544
  8,421
  9,344
  10,313
  11,326
  12,385
  13,489
  14,639
  15,834
  17,078
  18,370
  19,713
  21,109
  22,559
  24,067
  25,635
  27,267
  28,965
  30,733
  32,576
  34,496
  36,499
  38,588
  40,770
  43,048
  45,428
  47,915
Total equity, $m
  9,827
  11,212
  12,690
  14,259
  15,916
  17,662
  19,493
  21,409
  23,410
  25,497
  27,669
  29,930
  32,280
  34,723
  37,261
  39,899
  42,641
  45,491
  48,455
  51,539
  54,749
  58,092
  61,574
  65,204
  68,989
  72,939
  77,062
  81,368
  85,866
  90,568
Total liabilities and equity, $m
  15,026
  17,144
  19,404
  21,803
  24,337
  27,006
  29,806
  32,735
  35,795
  38,986
  42,308
  45,764
  49,358
  53,093
  56,974
  61,008
  65,200
  69,558
  74,090
  78,806
  83,714
  88,825
  94,150
  99,700
  105,488
  111,527
  117,832
  124,416
  131,294
  138,483
Debt-to-equity ratio
  0.380
  0.400
  0.410
  0.430
  0.440
  0.450
  0.450
  0.460
  0.470
  0.470
  0.480
  0.480
  0.480
  0.490
  0.490
  0.490
  0.490
  0.500
  0.500
  0.500
  0.500
  0.500
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
Adjusted equity ratio
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654
  0.654

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  659
  834
  1,021
  1,220
  1,429
  1,650
  1,881
  2,123
  2,375
  2,638
  3,568
  3,853
  4,150
  4,457
  4,777
  5,110
  5,455
  5,815
  6,188
  6,577
  6,982
  7,403
  7,842
  8,300
  8,777
  9,275
  9,795
  10,338
  10,906
  11,499
Depreciation, amort., depletion, $m
  2,090
  2,258
  2,437
  2,627
  2,828
  3,040
  3,262
  3,494
  3,736
  3,989
  3,353
  3,627
  3,912
  4,208
  4,516
  4,836
  5,168
  5,513
  5,872
  6,246
  6,635
  7,040
  7,462
  7,902
  8,361
  8,840
  9,339
  9,861
  10,406
  10,976
Funds from operations, $m
  2,749
  3,092
  3,458
  3,847
  4,257
  4,689
  5,142
  5,616
  6,111
  6,627
  6,922
  7,481
  8,062
  8,666
  9,293
  9,945
  10,623
  11,328
  12,061
  12,823
  13,617
  14,443
  15,305
  16,202
  17,138
  18,115
  19,135
  20,200
  21,312
  22,475
Change in working capital, $m
  59
  63
  68
  72
  76
  80
  84
  88
  92
  95
  99
  103
  108
  112
  116
  121
  125
  130
  136
  141
  147
  153
  159
  166
  173
  181
  189
  197
  206
  215
Cash from operations, $m
  2,690
  3,029
  3,391
  3,775
  4,182
  4,609
  5,059
  5,529
  6,020
  6,532
  6,822
  7,377
  7,954
  8,554
  9,177
  9,825
  10,498
  11,198
  11,925
  12,682
  13,470
  14,291
  15,145
  16,036
  16,965
  17,934
  18,946
  20,003
  21,107
  22,260
Maintenance CAPEX, $m
  -1,035
  -1,191
  -1,359
  -1,538
  -1,728
  -1,929
  -2,140
  -2,362
  -2,595
  -2,837
  -3,090
  -3,353
  -3,627
  -3,912
  -4,208
  -4,516
  -4,836
  -5,168
  -5,513
  -5,872
  -6,246
  -6,635
  -7,040
  -7,462
  -7,902
  -8,361
  -8,840
  -9,339
  -9,861
  -10,406
New CAPEX, $m
  -1,563
  -1,678
  -1,791
  -1,901
  -2,009
  -2,115
  -2,219
  -2,322
  -2,425
  -2,529
  -2,633
  -2,740
  -2,848
  -2,960
  -3,076
  -3,197
  -3,323
  -3,454
  -3,592
  -3,737
  -3,890
  -4,051
  -4,220
  -4,399
  -4,588
  -4,787
  -4,997
  -5,218
  -5,452
  -5,698
Cash from investing activities, $m
  -2,598
  -2,869
  -3,150
  -3,439
  -3,737
  -4,044
  -4,359
  -4,684
  -5,020
  -5,366
  -5,723
  -6,093
  -6,475
  -6,872
  -7,284
  -7,713
  -8,159
  -8,622
  -9,105
  -9,609
  -10,136
  -10,686
  -11,260
  -11,861
  -12,490
  -13,148
  -13,837
  -14,557
  -15,313
  -16,104
Free cash flow, $m
  92
  160
  241
  336
  444
  566
  699
  844
  1,000
  1,166
  1,099
  1,284
  1,479
  1,681
  1,892
  2,112
  2,339
  2,575
  2,820
  3,072
  3,334
  3,604
  3,885
  4,175
  4,475
  4,787
  5,110
  5,445
  5,793
  6,156
Issuance/(repayment) of debt, $m
  676
  733
  782
  830
  877
  923
  969
  1,014
  1,059
  1,104
  1,149
  1,196
  1,243
  1,292
  1,343
  1,396
  1,450
  1,508
  1,568
  1,632
  1,698
  1,768
  1,842
  1,920
  2,003
  2,090
  2,181
  2,278
  2,380
  2,487
Issuance/(repurchase) of shares, $m
  630
  550
  457
  349
  229
  95
  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  
  1,306
  1,283
  1,239
  1,179
  1,106
  1,018
  969
  1,014
  1,059
  1,104
  1,149
  1,196
  1,243
  1,292
  1,343
  1,396
  1,450
  1,508
  1,568
  1,632
  1,698
  1,768
  1,842
  1,920
  2,003
  2,090
  2,181
  2,278
  2,380
  2,487
Total cash flow (excl. dividends), $m
  1,398
  1,443
  1,479
  1,515
  1,550
  1,584
  1,668
  1,858
  2,058
  2,270
  2,249
  2,480
  2,722
  2,974
  3,235
  3,507
  3,790
  4,083
  4,388
  4,704
  5,032
  5,373
  5,727
  6,095
  6,478
  6,876
  7,291
  7,723
  8,173
  8,643
Retained Cash Flow (-), $m
  -1,289
  -1,385
  -1,478
  -1,569
  -1,658
  -1,745
  -1,831
  -1,916
  -2,001
  -2,087
  -2,173
  -2,260
  -2,350
  -2,443
  -2,538
  -2,638
  -2,742
  -2,850
  -2,964
  -3,084
  -3,210
  -3,342
  -3,482
  -3,630
  -3,785
  -3,950
  -4,123
  -4,306
  -4,498
  -4,702
Prev. year cash balance distribution, $m
  354
  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
  241
  278
  317
  359
  403
  450
  499
  551
  605
  662
  721
  783
  846
  913
  982
  1,054
  1,128
  1,206
  1,287
  1,370
  1,458
  1,548
  1,643
  1,741
  1,844
  1,951
  2,063
  2,179
  2,301
  2,428
Cash available for distribution, $m
  464
  58
  1
  -54
  -108
  -161
  -163
  -59
  57
  183
  76
  220
  372
  531
  697
  870
  1,048
  1,233
  1,424
  1,620
  1,822
  2,030
  2,244
  2,465
  2,692
  2,927
  3,168
  3,417
  3,675
  3,941
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
  444
  53
  1
  -44
  -84
  -117
  -110
  -37
  33
  96
  36
  94
  141
  178
  205
  221
  228
  227
  219
  206
  188
  168
  147
  126
  105
  85
  68
  53
  40
  30
Current shareholders' claim on cash, %
  97.9
  96.3
  95.2
  94.4
  94.0
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8
  93.8

Alexion Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapeutic products. The Company's products include Soliris (eculizumab), Strensiq (asfotase alfa) and Kanuma (sebelipase alfa). The Company's clinical development programs include Soliris (eculizumab), cPMP (ALXN1101), SBC-103, ALXN1210 (IV) and ALXN1210 (Subcutaneous). Its Soliris is the therapeutic approved for patients with either paroxysmal nocturnal hemoglobinuria (PNH) or hemolytic uremic syndrome (aHUS). PNH and aHUS result from chronic uncontrolled activation of the complement component of the immune system. Its Strensiq is for the treatment of patients with Hypophosphatasia (HPP). Its product, Kanuma is for the treatment of patients with Lysosomal Acid Lipase Deficiency (LAL-D). It is a recombinant form of the human LAL enzyme, which is a replacement therapy that is approved for the treatment for patients with LAL-D.

FINANCIAL RATIOS  of  Alexion Pharmaceuticals (ALXN)

Valuation Ratios
P/E Ratio 75.9
Price to Sales 9.8
Price to Book 3.5
Price to Tangible Book
Price to Cash Flow 27.9
Price to Free Cash Flow 40.2
Growth Rates
Sales Growth Rate 18.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 16.4%
Cap. Spend. - 3 Yr. Gr. Rate 62.9%
Financial Strength
Quick Ratio 8
Current Ratio 0.1
LT Debt to Equity 35.9%
Total Debt to Equity 37.8%
Interest Coverage 8
Management Effectiveness
Return On Assets 3.4%
Ret/ On Assets - 3 Yr. Avg. 7.6%
Return On Total Capital 3.4%
Ret/ On T. Cap. - 3 Yr. Avg. 9.1%
Return On Equity 4.7%
Return On Equity - 3 Yr. Avg. 10.1%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 91.6%
Gross Margin - 3 Yr. Avg. 91.6%
EBITDA Margin 34.1%
EBITDA Margin - 3 Yr. Avg. 34.2%
Operating Margin 21.6%
Oper. Margin - 3 Yr. Avg. 27%
Pre-Tax Margin 18.7%
Pre-Tax Margin - 3 Yr. Avg. 25.6%
Net Profit Margin 12.9%
Net Profit Margin - 3 Yr. Avg. 16%
Effective Tax Rate 30.7%
Eff/ Tax Rate - 3 Yr. Avg. 42.2%
Payout Ratio 0%

ALXN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ALXN stock intrinsic value calculation we used $3551 million for the last fiscal year's total revenue generated by Alexion Pharmaceuticals. The default revenue input number comes from 2017 income statement of Alexion 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 ALXN stock valuation model: a) initial revenue growth rate of 15.1% 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 ALXN is calculated based on our internal credit rating of Alexion 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 Alexion 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 ALXN stock the variable cost ratio is equal to 77.2%.

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 ALXN 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 Alexion Pharmaceuticals.

Corporate tax rate of 27% is the nominal tax rate for Alexion 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 ALXN stock is equal to 6.8%.

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 ALXN are equal to 291.4%.

Life of production assets of 10 years is the average useful life of capital assets used in Alexion 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 ALXN is equal to 11%. 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 - $8893 million for Alexion 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 224 million for Alexion 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 Alexion Pharmaceuticals at the current share price and the inputted number of shares is $30.3 billion.

RELATED COMPANIES Price Int.Val. Rating
CCXI ChemoCentryx 12.32 34.81  str.buy
SRPT Sarepta Therap 133.31 3.28  str.sell
AGIO Agios Pharmace 91.06 2.00  str.sell
ALNY Alnylam Pharma 105.93 4.85  str.sell

COMPANY NEWS

▶ 4 Biotechs on Verge of Big Breakouts   [Jul-09-18 06:00AM  Investopedia]
▶ 3 Big Biotechs That Can Beat the Market   [Jun-21-18 11:49AM  Investopedia]
▶ 5 Stocks That Are Screaming Buys Right Now   [07:52AM  TheStreet.com]
▶ Future home of PTC, Alexion could sell for $450M   [05:56AM  American City Business Journals]
▶ Why This Biotech Company Could Shock 2019 Sales Expectations   [Jun-19-18 04:21PM  Investor's Business Daily]
▶ Big Biotech Set for Earnings Blowout?   [Jun-15-18 10:37AM  Barrons.com]
▶ Why Alexion's Blockbuster Franchise Is Safe From Copycats For Now   [Jun-05-18 04:45PM  Investor's Business Daily]
▶ Mass. had the fastest-growing economy in the Northeast for 2017   [May-09-18 04:44AM  American City Business Journals]
▶ 3 Top Healthcare Stocks to Buy Right Now   [May-01-18 03:00PM  Motley Fool]
▶ Alexion Rockets As New Drug Proves Itself Against Blockbuster Soliris   [Apr-26-18 04:56PM  Investor's Business Daily]
▶ Drug Makers: A Dose of Robust Earnings   [10:05AM  Barrons.com]
▶ Alexion: 1Q Earnings Snapshot   [07:28AM  Associated Press]
▶ 3 Charts That Suggest Biotech Stocks Are Headed Lower   [Apr-25-18 01:25PM  Investopedia]
▶ [$$] New Biotech Grabs Series A for Rare Disease Treatments   [07:30AM  The Wall Street Journal]
▶ Alexion Slips On Reports Brazil Will Allow Copycats Of Blockbuster Soliris   [Apr-20-18 05:14PM  Investor's Business Daily]
▶ NYSE trader: Here's why stocks are up and headline risk is down   [Apr-18-18 12:56PM  Yahoo Finance Video]
▶ How Alexion Could Diversify From Its Cash Cow To Battle Valeant, Teva   [Apr-11-18 04:33PM  Investor's Business Daily]
▶ Vertex Is Worth More Than You Think   [12:22PM  Barrons.com]
▶ [$$] Alexion Makes Bid for Sweden's Wilson Therapeutics   [02:26AM  The Wall Street Journal]
▶ Alexion to Acquire Wilson Therapeutics   [01:57AM  Business Wire]
▶ 4 Biotech Stocks With Leaky Pipelines   [Apr-10-18 01:50PM  InvestorPlace]
▶ Edited Transcript of ALXN presentation 7-Mar-17 6:05pm GMT   [11:00AM  Thomson Reuters StreetEvents]
▶ Alexion Pharmaceuticals, Inc. Is Researching a Turnaround   [Apr-09-18 01:26PM  InvestorPlace]
▶ [$$] Investors smart at ailing pharma deals   [Apr-03-18 11:49PM  Financial Times]
▶ When Will They Learn? 4 Huge Biotech Blowups   [Mar-28-18 10:37AM  Motley Fool]
▶ MARKETS: Lowe's CEO to resign, stock jumps 6%   [Mar-26-18 10:31AM  Yahoo Finance Video]
▶ Why Amgen Shouldn't Use Its War Chest For A Celgene Megamerger   [Mar-19-18 04:31PM  Investor's Business Daily]
▶ Investors buy the dip and pour record $43 billion into stocks   [Mar-16-18 11:04AM  Yahoo Finance Video]
▶ Dollar General and Alexion jump while Mattel, Unilever fall   [Mar-15-18 04:26PM  Associated Press]
▶ Alexion Boosted by Trial Data   [12:38PM  Barrons.com]
▶ Final Trade: C, AXLN & more   [Mar-09-18 05:30PM  CNBC Videos]
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.