Intrinsic value of Array BioPharma Inc. - ARRY

Previous Close

$29.59

  Intrinsic Value

$0.24

stock screener

  Rating & Target

str. sell

-99%

Previous close

$29.59

 
Intrinsic value

$0.24

 
Up/down potential

-99%

 
Rating

str. sell

We calculate the intrinsic value of ARRY 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 6.5

 

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
  278
  430
  643
  933
  1,317
  1,810
  2,430
  3,191
  4,106
  5,186
  6,439
  7,873
  9,489
  11,291
  13,276
  15,443
  17,789
  20,310
  23,002
  25,861
  28,884
  32,066
  35,406
  38,902
  42,554
  46,362
  50,328
  54,454
  58,744
  63,203
Variable operating expenses, $m
  467
  721
  1,077
  1,563
  2,205
  3,031
  4,068
  5,342
  6,873
  8,681
  10,780
  13,179
  15,885
  18,900
  22,223
  25,851
  29,778
  33,999
  38,505
  43,291
  48,351
  53,678
  59,269
  65,122
  71,235
  77,609
  84,247
  91,154
  98,336
  105,800
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
  467
  721
  1,077
  1,563
  2,205
  3,031
  4,068
  5,342
  6,873
  8,681
  10,780
  13,179
  15,885
  18,900
  22,223
  25,851
  29,778
  33,999
  38,505
  43,291
  48,351
  53,678
  59,269
  65,122
  71,235
  77,609
  84,247
  91,154
  98,336
  105,800
Operating income, $m
  -188
  -291
  -434
  -630
  -888
  -1,221
  -1,638
  -2,151
  -2,768
  -3,496
  -4,340
  -5,306
  -6,396
  -7,610
  -8,948
  -10,408
  -11,989
  -13,689
  -15,503
  -17,430
  -19,467
  -21,612
  -23,863
  -26,219
  -28,681
  -31,247
  -33,920
  -36,701
  -39,592
  -42,597
EBITDA, $m
  -185
  -286
  -428
  -621
  -876
  -1,204
  -1,616
  -2,122
  -2,731
  -3,449
  -4,283
  -5,237
  -6,312
  -7,510
  -8,831
  -10,272
  -11,833
  -13,510
  -15,301
  -17,202
  -19,213
  -21,330
  -23,551
  -25,877
  -28,306
  -30,839
  -33,477
  -36,221
  -39,075
  -42,041
Interest expense (income), $m
  4
  10
  6
  15
  27
  44
  65
  94
  129
  172
  225
  286
  358
  440
  532
  635
  748
  872
  1,006
  1,150
  1,304
  1,467
  1,640
  1,821
  2,012
  2,212
  2,420
  2,638
  2,864
  3,100
  3,345
Earnings before tax, $m
  -198
  -297
  -449
  -657
  -932
  -1,286
  -1,732
  -2,280
  -2,940
  -3,720
  -4,626
  -5,664
  -6,836
  -8,142
  -9,583
  -11,157
  -12,861
  -14,695
  -16,653
  -18,734
  -20,934
  -23,251
  -25,684
  -28,231
  -30,892
  -33,667
  -36,557
  -39,565
  -42,692
  -45,942
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
  -198
  -297
  -449
  -657
  -932
  -1,286
  -1,732
  -2,280
  -2,940
  -3,720
  -4,626
  -5,664
  -6,836
  -8,142
  -9,583
  -11,157
  -12,861
  -14,695
  -16,653
  -18,734
  -20,934
  -23,251
  -25,684
  -28,231
  -30,892
  -33,667
  -36,557
  -39,565
  -42,692
  -45,942

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
  201
  310
  464
  673
  949
  1,305
  1,752
  2,300
  2,960
  3,739
  4,643
  5,676
  6,842
  8,140
  9,572
  11,134
  12,825
  14,643
  16,584
  18,645
  20,825
  23,119
  25,527
  28,048
  30,681
  33,426
  36,285
  39,260
  42,353
  45,568
Adjusted assets (=assets-cash), $m
  201
  310
  464
  673
  949
  1,305
  1,752
  2,300
  2,960
  3,739
  4,643
  5,676
  6,842
  8,140
  9,572
  11,134
  12,825
  14,643
  16,584
  18,645
  20,825
  23,119
  25,527
  28,048
  30,681
  33,426
  36,285
  39,260
  42,353
  45,568
Revenue / Adjusted assets
  1.383
  1.387
  1.386
  1.386
  1.388
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
  1.387
Average production assets, $m
  12
  19
  28
  41
  58
  80
  107
  140
  181
  228
  283
  346
  418
  497
  584
  679
  783
  894
  1,012
  1,138
  1,271
  1,411
  1,558
  1,712
  1,872
  2,040
  2,214
  2,396
  2,585
  2,781
Working capital, $m
  -62
  -95
  -142
  -206
  -291
  -400
  -537
  -705
  -907
  -1,146
  -1,423
  -1,740
  -2,097
  -2,495
  -2,934
  -3,413
  -3,931
  -4,489
  -5,083
  -5,715
  -6,383
  -7,087
  -7,825
  -8,597
  -9,404
  -10,246
  -11,122
  -12,034
  -12,982
  -13,968
Total debt, $m
  70
  169
  307
  495
  744
  1,064
  1,466
  1,960
  2,554
  3,254
  4,068
  4,998
  6,047
  7,216
  8,504
  9,910
  11,432
  13,068
  14,815
  16,670
  18,632
  20,697
  22,864
  25,133
  27,502
  29,973
  32,546
  35,224
  38,007
  40,901
Total liabilities, $m
  181
  279
  417
  606
  854
  1,175
  1,577
  2,070
  2,664
  3,365
  4,178
  5,109
  6,158
  7,326
  8,614
  10,021
  11,543
  13,179
  14,926
  16,781
  18,742
  20,807
  22,974
  25,243
  27,613
  30,084
  32,657
  35,334
  38,118
  41,011
Total equity, $m
  20
  31
  46
  67
  95
  131
  175
  230
  296
  374
  464
  568
  684
  814
  957
  1,113
  1,283
  1,464
  1,658
  1,865
  2,082
  2,312
  2,553
  2,805
  3,068
  3,343
  3,629
  3,926
  4,235
  4,557
Total liabilities and equity, $m
  201
  310
  463
  673
  949
  1,306
  1,752
  2,300
  2,960
  3,739
  4,642
  5,677
  6,842
  8,140
  9,571
  11,134
  12,826
  14,643
  16,584
  18,646
  20,824
  23,119
  25,527
  28,048
  30,681
  33,427
  36,286
  39,260
  42,353
  45,568
Debt-to-equity ratio
  3.500
  5.440
  6.620
  7.360
  7.840
  8.150
  8.370
  8.520
  8.630
  8.700
  8.760
  8.810
  8.840
  8.860
  8.880
  8.900
  8.910
  8.920
  8.930
  8.940
  8.950
  8.950
  8.960
  8.960
  8.960
  8.970
  8.970
  8.970
  8.970
  8.980
Adjusted equity ratio
  0.100
  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
  -198
  -297
  -449
  -657
  -932
  -1,286
  -1,732
  -2,280
  -2,940
  -3,720
  -4,626
  -5,664
  -6,836
  -8,142
  -9,583
  -11,157
  -12,861
  -14,695
  -16,653
  -18,734
  -20,934
  -23,251
  -25,684
  -28,231
  -30,892
  -33,667
  -36,557
  -39,565
  -42,692
  -45,942
Depreciation, amort., depletion, $m
  3
  4
  6
  9
  12
  17
  22
  29
  37
  46
  57
  69
  84
  99
  117
  136
  157
  179
  202
  228
  254
  282
  312
  342
  374
  408
  443
  479
  517
  556
Funds from operations, $m
  -195
  -292
  -443
  -648
  -919
  -1,270
  -1,710
  -2,251
  -2,903
  -3,674
  -4,570
  -5,595
  -6,752
  -8,042
  -9,466
  -11,021
  -12,705
  -14,516
  -16,451
  -18,506
  -20,680
  -22,969
  -25,373
  -27,889
  -30,518
  -33,259
  -36,114
  -39,085
  -42,175
  -45,386
Change in working capital, $m
  -23
  -34
  -47
  -64
  -85
  -109
  -137
  -168
  -202
  -239
  -277
  -317
  -357
  -398
  -439
  -479
  -518
  -557
  -595
  -632
  -668
  -703
  -738
  -773
  -807
  -842
  -876
  -912
  -948
  -985
Cash from operations, $m
  -172
  -259
  -396
  -584
  -835
  -1,161
  -1,573
  -2,083
  -2,701
  -3,435
  -4,293
  -5,278
  -6,395
  -7,644
  -9,027
  -10,542
  -12,186
  -13,959
  -15,856
  -17,874
  -20,012
  -22,266
  -24,634
  -27,116
  -29,711
  -32,418
  -35,238
  -38,174
  -41,227
  -44,400
Maintenance CAPEX, $m
  -2
  -2
  -4
  -6
  -8
  -12
  -16
  -21
  -28
  -36
  -46
  -57
  -69
  -84
  -99
  -117
  -136
  -157
  -179
  -202
  -228
  -254
  -282
  -312
  -342
  -374
  -408
  -443
  -479
  -517
New CAPEX, $m
  -5
  -7
  -9
  -13
  -17
  -22
  -27
  -33
  -40
  -48
  -55
  -63
  -71
  -79
  -87
  -95
  -103
  -111
  -118
  -126
  -133
  -140
  -147
  -154
  -161
  -168
  -174
  -182
  -189
  -196
Cash from investing activities, $m
  -7
  -9
  -13
  -19
  -25
  -34
  -43
  -54
  -68
  -84
  -101
  -120
  -140
  -163
  -186
  -212
  -239
  -268
  -297
  -328
  -361
  -394
  -429
  -466
  -503
  -542
  -582
  -625
  -668
  -713
Free cash flow, $m
  -178
  -268
  -409
  -602
  -860
  -1,194
  -1,616
  -2,138
  -2,770
  -3,519
  -4,394
  -5,398
  -6,535
  -7,807
  -9,214
  -10,754
  -12,426
  -14,226
  -16,153
  -18,202
  -20,372
  -22,660
  -25,064
  -27,582
  -30,214
  -32,960
  -35,821
  -38,798
  -41,895
  -45,113
Issuance/(repayment) of debt, $m
  -42
  98
  138
  188
  249
  320
  402
  494
  594
  701
  814
  930
  1,049
  1,169
  1,288
  1,406
  1,522
  1,636
  1,747
  1,855
  1,961
  2,065
  2,167
  2,269
  2,370
  2,471
  2,573
  2,677
  2,784
  2,893
Issuance/(repurchase) of shares, $m
  315
  308
  464
  678
  959
  1,322
  1,777
  2,335
  3,006
  3,798
  4,717
  5,767
  6,952
  8,272
  9,726
  11,313
  13,031
  14,876
  16,847
  18,940
  21,152
  23,481
  25,925
  28,483
  31,155
  33,942
  36,843
  39,862
  43,001
  46,263
Cash from financing (excl. dividends), $m  
  273
  406
  602
  866
  1,208
  1,642
  2,179
  2,829
  3,600
  4,499
  5,531
  6,697
  8,001
  9,441
  11,014
  12,719
  14,553
  16,512
  18,594
  20,795
  23,113
  25,546
  28,092
  30,752
  33,525
  36,413
  39,416
  42,539
  45,785
  49,156
Total cash flow (excl. dividends), $m
  95
  138
  194
  264
  348
  448
  563
  691
  830
  980
  1,137
  1,300
  1,466
  1,633
  1,800
  1,965
  2,127
  2,286
  2,441
  2,593
  2,741
  2,886
  3,029
  3,170
  3,311
  3,453
  3,596
  3,741
  3,890
  4,043
Retained Cash Flow (-), $m
  -315
  -308
  -464
  -678
  -959
  -1,322
  -1,777
  -2,335
  -3,006
  -3,798
  -4,717
  -5,767
  -6,952
  -8,272
  -9,726
  -11,313
  -13,031
  -14,876
  -16,847
  -18,940
  -21,152
  -23,481
  -25,925
  -28,483
  -31,155
  -33,942
  -36,843
  -39,862
  -43,001
  -46,263
Prev. year cash balance distribution, $m
  317
  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
  97
  -169
  -270
  -414
  -611
  -874
  -1,214
  -1,645
  -2,176
  -2,818
  -3,580
  -4,468
  -5,486
  -6,638
  -7,926
  -9,348
  -10,903
  -12,590
  -14,406
  -16,347
  -18,411
  -20,595
  -22,896
  -25,313
  -27,844
  -30,489
  -33,247
  -36,121
  -39,111
  -42,220
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
  93
  -155
  -235
  -341
  -474
  -634
  -820
  -1,028
  -1,250
  -1,477
  -1,700
  -1,907
  -2,086
  -2,229
  -2,327
  -2,375
  -2,372
  -2,319
  -2,218
  -2,077
  -1,904
  -1,709
  -1,501
  -1,289
  -1,083
  -890
  -714
  -559
  -427
  -318
Current shareholders' claim on cash, %
  50.0
  19.7
  7.9
  3.2
  1.3
  0.6
  0.2
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Array BioPharma Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule drugs to treat patients afflicted with cancer. The Company's programs include approximately three cancer drugs, binimetinib, encorafenib and selumetinib (partnered with AstraZeneca, PLC). Its binimetinib and encorafenib are in Phase III trials in advanced cancer patients, including the COLUMBUS trial studying encorafenib in combination with binimetinib in patients with BRAF-mutant melanoma and has initiated BEACON CRC trial to study encorafenib in combination with binimetinib and cetuximab in patients with BRAF V600E-mutant colorectal cancer (BRAFm CRC). Its selumetinib is a mitogen-activated protein kinase (MEK) inhibitor for cancer, which is in Phase III trial. Its advanced clinical-stage drugs include Filanesib, ARRY-797, ASC08/Danoprevir, Ipatasertib/GDC-0068, Motolimod/VTX-2337, LOXO-101, ONT-380/ARRY-380, GDC-0575, GDC-0994 and ARRY-382.

FINANCIAL RATIOS  of  Array BioPharma Inc. (ARRY)

Valuation Ratios
P/E Ratio -43.3
Price to Sales 33.6
Price to Book 422.4
Price to Tangible Book
Price to Cash Flow -130
Price to Free Cash Flow -117.9
Growth Rates
Sales Growth Rate 9.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 33.3%
Cap. Spend. - 3 Yr. Gr. Rate 5.9%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 1116.7%
Total Debt to Equity 1116.7%
Interest Coverage -28
Management Effectiveness
Return On Assets -50.4%
Ret/ On Assets - 3 Yr. Avg. -30.4%
Return On Total Capital -105.4%
Ret/ On T. Cap. - 3 Yr. Avg. -59.9%
Return On Equity 900%
Return On Equity - 3 Yr. Avg. -904.7%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 76.2%
Gross Margin - 3 Yr. Avg. 58.3%
EBITDA Margin -73.5%
EBITDA Margin - 3 Yr. Avg. -34.6%
Operating Margin -68.2%
Oper. Margin - 3 Yr. Avg. -40.6%
Pre-Tax Margin -77.5%
Pre-Tax Margin - 3 Yr. Avg. -42.5%
Net Profit Margin -77.5%
Net Profit Margin - 3 Yr. Avg. -42.5%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

ARRY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ARRY stock intrinsic value calculation we used $174 million for the last fiscal year's total revenue generated by Array BioPharma Inc.. The default revenue input number comes from 0001 income statement of Array BioPharma 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 ARRY 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 ARRY is calculated based on our internal credit rating of Array BioPharma 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 Array BioPharma 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 ARRY stock the variable cost ratio is equal to 167.8%.

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 ARRY 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 8.8% for Array BioPharma Inc..

Corporate tax rate of 27% is the nominal tax rate for Array BioPharma 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 ARRY 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 ARRY are equal to 4.4%.

Life of production assets of 3.4 years is the average useful life of capital assets used in Array BioPharma 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 ARRY is equal to -22.1%. 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 - $219.743 million for Array BioPharma 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 218.274 million for Array BioPharma 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 Array BioPharma Inc. at the current share price and the inputted number of shares is $6.5 billion.

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