Intrinsic value of Alexion Pharmaceuticals, Inc. - ALXN

Previous Close

$126.01

  Intrinsic Value

$8.61

stock screener

  Rating & Target

str. sell

-93%

Previous close

$126.01

 
Intrinsic value

$8.61

 
Up/down potential

-93%

 
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 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 28.2

 

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, %
  24.10
  22.19
  20.47
  18.92
  17.53
  16.28
  15.15
  14.14
  13.22
  12.40
  11.66
  10.99
  10.39
  9.85
  9.37
  8.93
  8.54
  8.19
  7.87
  7.58
  7.32
  7.09
  6.88
  6.69
  6.52
  6.37
  6.23
  6.11
  6.00
  5.90
Revenue, $m
  5,127
  6,264
  7,546
  8,975
  10,548
  12,265
  14,123
  16,120
  18,251
  20,514
  22,906
  25,424
  28,067
  30,833
  33,722
  36,734
  39,871
  43,134
  46,527
  50,054
  53,719
  57,528
  61,486
  65,602
  69,881
  74,333
  78,967
  83,793
  88,820
  94,060
Variable operating expenses, $m
  4,127
  5,010
  6,006
  7,115
  8,336
  9,669
  11,112
  12,662
  14,317
  16,074
  17,783
  19,738
  21,790
  23,938
  26,180
  28,519
  30,954
  33,488
  36,122
  38,860
  41,706
  44,663
  47,736
  50,931
  54,253
  57,710
  61,308
  65,054
  68,957
  73,025
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
  4,127
  5,010
  6,006
  7,115
  8,336
  9,669
  11,112
  12,662
  14,317
  16,074
  17,783
  19,738
  21,790
  23,938
  26,180
  28,519
  30,954
  33,488
  36,122
  38,860
  41,706
  44,663
  47,736
  50,931
  54,253
  57,710
  61,308
  65,054
  68,957
  73,025
Operating income, $m
  999
  1,254
  1,540
  1,860
  2,212
  2,596
  3,011
  3,458
  3,934
  4,440
  5,123
  5,686
  6,277
  6,895
  7,541
  8,215
  8,916
  9,646
  10,405
  11,194
  12,013
  12,865
  13,750
  14,671
  15,628
  16,623
  17,660
  18,739
  19,863
  21,035
EBITDA, $m
  1,433
  1,751
  2,109
  2,508
  2,948
  3,428
  3,948
  4,506
  5,101
  5,734
  6,402
  7,106
  7,845
  8,618
  9,425
  10,267
  11,144
  12,056
  13,005
  13,990
  15,015
  16,079
  17,186
  18,336
  19,532
  20,777
  22,072
  23,421
  24,826
  26,290
Interest expense (income), $m
  80
  173
  231
  296
  370
  453
  544
  643
  751
  866
  989
  1,120
  1,258
  1,404
  1,556
  1,716
  1,883
  2,057
  2,239
  2,427
  2,623
  2,827
  3,039
  3,259
  3,488
  3,726
  3,973
  4,230
  4,498
  4,777
  5,068
Earnings before tax, $m
  826
  1,023
  1,244
  1,489
  1,759
  2,052
  2,368
  2,707
  3,068
  3,451
  4,003
  4,427
  4,873
  5,339
  5,825
  6,332
  6,859
  7,408
  7,978
  8,570
  9,186
  9,826
  10,491
  11,183
  11,902
  12,650
  13,429
  14,241
  15,086
  15,967
Tax expense, $m
  223
  276
  336
  402
  475
  554
  639
  731
  828
  932
  1,081
  1,195
  1,316
  1,441
  1,573
  1,710
  1,852
  2,000
  2,154
  2,314
  2,480
  2,653
  2,833
  3,019
  3,214
  3,416
  3,626
  3,845
  4,073
  4,311
Net income, $m
  603
  747
  908
  1,087
  1,284
  1,498
  1,729
  1,976
  2,240
  2,519
  2,922
  3,232
  3,557
  3,897
  4,252
  4,622
  5,007
  5,408
  5,824
  6,256
  6,706
  7,173
  7,659
  8,163
  8,688
  9,235
  9,803
  10,396
  11,013
  11,656

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
  16,379
  20,013
  24,110
  28,673
  33,700
  39,185
  45,122
  51,500
  58,310
  65,540
  73,182
  81,227
  89,670
  98,507
  107,737
  117,360
  127,382
  137,809
  148,650
  159,918
  171,627
  183,795
  196,442
  209,590
  223,262
  237,487
  252,292
  267,708
  283,770
  300,511
Adjusted assets (=assets-cash), $m
  16,379
  20,013
  24,110
  28,673
  33,700
  39,185
  45,122
  51,500
  58,310
  65,540
  73,182
  81,227
  89,670
  98,507
  107,737
  117,360
  127,382
  137,809
  148,650
  159,918
  171,627
  183,795
  196,442
  209,590
  223,262
  237,487
  252,292
  267,708
  283,770
  300,511
Revenue / Adjusted assets
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
Average production assets, $m
  7,218
  8,820
  10,625
  12,636
  14,852
  17,269
  19,885
  22,696
  25,697
  28,884
  32,251
  35,797
  39,518
  43,412
  47,480
  51,721
  56,138
  60,733
  65,511
  70,476
  75,637
  80,999
  86,573
  92,367
  98,393
  104,661
  111,186
  117,980
  125,058
  132,436
Working capital, $m
  1,230
  1,503
  1,811
  2,154
  2,532
  2,944
  3,390
  3,869
  4,380
  4,923
  5,497
  6,102
  6,736
  7,400
  8,093
  8,816
  9,569
  10,352
  11,167
  12,013
  12,893
  13,807
  14,757
  15,744
  16,771
  17,840
  18,952
  20,110
  21,317
  22,574
Total debt, $m
  4,271
  5,488
  6,861
  8,389
  10,073
  11,911
  13,900
  16,036
  18,317
  20,740
  23,300
  25,995
  28,823
  31,784
  34,875
  38,099
  41,457
  44,950
  48,581
  52,356
  56,279
  60,355
  64,592
  68,996
  73,577
  78,342
  83,301
  88,466
  93,847
  99,455
Total liabilities, $m
  5,487
  6,704
  8,077
  9,605
  11,289
  13,127
  15,116
  17,253
  19,534
  21,956
  24,516
  27,211
  30,040
  33,000
  36,092
  39,316
  42,673
  46,166
  49,798
  53,572
  57,495
  61,571
  65,808
  70,212
  74,793
  79,558
  84,518
  89,682
  95,063
  100,671
Total equity, $m
  10,892
  13,309
  16,033
  19,067
  22,410
  26,058
  30,006
  34,248
  38,776
  43,584
  48,666
  54,016
  59,631
  65,507
  71,645
  78,045
  84,709
  91,643
  98,852
  106,345
  114,132
  122,224
  130,634
  139,377
  148,469
  157,929
  167,774
  178,026
  188,707
  199,840
Total liabilities and equity, $m
  16,379
  20,013
  24,110
  28,672
  33,699
  39,185
  45,122
  51,501
  58,310
  65,540
  73,182
  81,227
  89,671
  98,507
  107,737
  117,361
  127,382
  137,809
  148,650
  159,917
  171,627
  183,795
  196,442
  209,589
  223,262
  237,487
  252,292
  267,708
  283,770
  300,511
Debt-to-equity ratio
  0.390
  0.410
  0.430
  0.440
  0.450
  0.460
  0.460
  0.470
  0.470
  0.480
  0.480
  0.480
  0.480
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.500
  0.500
  0.500
  0.500
  0.500
  0.500
  0.500
Adjusted equity ratio
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665
  0.665

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  603
  747
  908
  1,087
  1,284
  1,498
  1,729
  1,976
  2,240
  2,519
  2,922
  3,232
  3,557
  3,897
  4,252
  4,622
  5,007
  5,408
  5,824
  6,256
  6,706
  7,173
  7,659
  8,163
  8,688
  9,235
  9,803
  10,396
  11,013
  11,656
Depreciation, amort., depletion, $m
  434
  497
  569
  649
  737
  832
  936
  1,048
  1,167
  1,293
  1,280
  1,421
  1,568
  1,723
  1,884
  2,052
  2,228
  2,410
  2,600
  2,797
  3,001
  3,214
  3,435
  3,665
  3,904
  4,153
  4,412
  4,682
  4,963
  5,255
Funds from operations, $m
  1,037
  1,244
  1,477
  1,736
  2,020
  2,330
  2,665
  3,024
  3,407
  3,813
  4,202
  4,653
  5,125
  5,620
  6,136
  6,675
  7,235
  7,818
  8,423
  9,053
  9,707
  10,387
  11,094
  11,829
  12,593
  13,388
  14,215
  15,077
  15,975
  16,911
Change in working capital, $m
  239
  273
  308
  343
  378
  412
  446
  479
  512
  543
  574
  604
  634
  664
  693
  723
  753
  783
  814
  846
  880
  914
  950
  988
  1,027
  1,069
  1,112
  1,158
  1,207
  1,258
Cash from operations, $m
  798
  971
  1,169
  1,393
  1,643
  1,918
  2,219
  2,545
  2,895
  3,270
  3,628
  4,048
  4,491
  4,956
  5,443
  5,952
  6,482
  7,034
  7,609
  8,207
  8,828
  9,473
  10,144
  10,841
  11,566
  12,319
  13,103
  13,919
  14,769
  15,654
Maintenance CAPEX, $m
  -231
  -286
  -350
  -422
  -501
  -589
  -685
  -789
  -901
  -1,020
  -1,146
  -1,280
  -1,421
  -1,568
  -1,723
  -1,884
  -2,052
  -2,228
  -2,410
  -2,600
  -2,797
  -3,001
  -3,214
  -3,435
  -3,665
  -3,904
  -4,153
  -4,412
  -4,682
  -4,963
New CAPEX, $m
  -1,402
  -1,602
  -1,806
  -2,011
  -2,215
  -2,418
  -2,616
  -2,811
  -3,001
  -3,186
  -3,368
  -3,546
  -3,721
  -3,894
  -4,068
  -4,241
  -4,417
  -4,595
  -4,778
  -4,966
  -5,160
  -5,363
  -5,573
  -5,794
  -6,026
  -6,269
  -6,525
  -6,794
  -7,078
  -7,378
Cash from investing activities, $m
  -1,633
  -1,888
  -2,156
  -2,433
  -2,716
  -3,007
  -3,301
  -3,600
  -3,902
  -4,206
  -4,514
  -4,826
  -5,142
  -5,462
  -5,791
  -6,125
  -6,469
  -6,823
  -7,188
  -7,566
  -7,957
  -8,364
  -8,787
  -9,229
  -9,691
  -10,173
  -10,678
  -11,206
  -11,760
  -12,341
Free cash flow, $m
  -835
  -917
  -986
  -1,039
  -1,074
  -1,089
  -1,083
  -1,055
  -1,006
  -936
  -886
  -777
  -650
  -506
  -347
  -174
  13
  212
  421
  641
  871
  1,109
  1,356
  1,612
  1,875
  2,146
  2,425
  2,713
  3,009
  3,313
Issuance/(repayment) of debt, $m
  1,064
  1,218
  1,372
  1,528
  1,684
  1,838
  1,989
  2,137
  2,281
  2,422
  2,560
  2,695
  2,828
  2,960
  3,092
  3,224
  3,357
  3,493
  3,632
  3,775
  3,923
  4,076
  4,237
  4,404
  4,580
  4,765
  4,960
  5,165
  5,381
  5,608
Issuance/(repurchase) of shares, $m
  1,513
  1,670
  1,816
  1,947
  2,059
  2,150
  2,219
  2,265
  2,288
  2,289
  2,160
  2,118
  2,057
  1,979
  1,885
  1,778
  1,657
  1,526
  1,386
  1,237
  1,081
  919
  752
  580
  404
  225
  42
  0
  0
  0
Cash from financing (excl. dividends), $m  
  2,577
  2,888
  3,188
  3,475
  3,743
  3,988
  4,208
  4,402
  4,569
  4,711
  4,720
  4,813
  4,885
  4,939
  4,977
  5,002
  5,014
  5,019
  5,018
  5,012
  5,004
  4,995
  4,989
  4,984
  4,984
  4,990
  5,002
  5,165
  5,381
  5,608
Total cash flow (excl. dividends), $m
  1,742
  1,970
  2,202
  2,436
  2,669
  2,899
  3,125
  3,347
  3,563
  3,774
  3,834
  4,036
  4,236
  4,433
  4,630
  4,828
  5,028
  5,231
  5,439
  5,653
  5,874
  6,104
  6,344
  6,596
  6,859
  7,136
  7,427
  7,877
  8,389
  8,922
Retained Cash Flow (-), $m
  -2,116
  -2,417
  -2,724
  -3,034
  -3,343
  -3,648
  -3,948
  -4,242
  -4,528
  -4,808
  -5,082
  -5,350
  -5,615
  -5,877
  -6,138
  -6,400
  -6,664
  -6,934
  -7,209
  -7,493
  -7,787
  -8,092
  -8,410
  -8,743
  -9,092
  -9,459
  -9,845
  -10,252
  -10,681
  -11,133
Prev. year cash balance distribution, $m
  390
  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
  16
  -446
  -522
  -598
  -674
  -749
  -822
  -895
  -965
  -1,034
  -1,248
  -1,314
  -1,379
  -1,443
  -1,508
  -1,572
  -1,637
  -1,703
  -1,771
  -1,840
  -1,913
  -1,988
  -2,066
  -2,147
  -2,233
  -2,323
  -2,418
  -2,375
  -2,292
  -2,211
Discount rate, %
  4.90
  5.15
  5.40
  5.67
  5.96
  6.25
  6.57
  6.89
  7.24
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.19
  10.70
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
PV of cash for distribution, $m
  15
  -404
  -446
  -480
  -505
  -520
  -527
  -525
  -514
  -497
  -536
  -500
  -461
  -419
  -376
  -333
  -291
  -251
  -213
  -178
  -147
  -119
  -95
  -74
  -57
  -43
  -32
  -22
  -14
  -9
Current shareholders' claim on cash, %
  94.7
  90.2
  86.3
  83.1
  80.2
  77.8
  75.7
  73.9
  72.3
  71.0
  69.8
  68.9
  68.0
  67.3
  66.7
  66.1
  65.7
  65.3
  65.0
  64.7
  64.5
  64.3
  64.2
  64.1
  64.0
  64.0
  64.0
  64.0
  64.0
  64.0

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, Inc. (ALXN)

Valuation Ratios
P/E Ratio 70.7
Price to Sales 9.2
Price to Book 3.2
Price to Tangible Book
Price to Cash Flow 26
Price to Free Cash Flow 37.5
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 $4131 million for the last fiscal year's total revenue generated by Alexion Pharmaceuticals, Inc.. The default revenue input number comes from 0001 income statement of Alexion Pharmaceuticals, Inc.. 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 24.1% 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 4.9%, whose default value for ALXN is calculated based on our internal credit rating of Alexion Pharmaceuticals, Inc., 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, Inc..
    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 81.2%.

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, Inc..

Corporate tax rate of 27% is the nominal tax rate for Alexion Pharmaceuticals, Inc.. 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 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 ALXN are equal to 140.8%.

Life of production assets of 25.2 years is the average useful life of capital assets used in Alexion Pharmaceuticals, Inc. 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 24%. 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 - $9165.3 million for Alexion Pharmaceuticals, Inc. - 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 223.455 million for Alexion Pharmaceuticals, Inc. 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, Inc. at the current share price and the inputted number of shares is $28.2 billion.

RELATED COMPANIES Price Int.Val. Rating
CCXI ChemoCentryx, 12.13 2.01  str.sell
SRPT Sarepta Therap 116.64 3.58  str.sell
AGIO Agios Pharmace 55.97 2.94  str.sell
KDMN Kadmon Holding 2.30 0.29  str.sell
ALNY Alnylam Pharma 82.07 3.06  str.sell

CONTACT US      

About X-FIN       Privacy policy       Terms of use      

Copyright © X-FIN.com 2005-2019. All rigths reserved.