Intrinsic value of BioTelemetry, Inc. - BEAT

Previous Close

$68.22

  Intrinsic Value

$47.53

stock screener

  Rating & Target

sell

-30%

Previous close

$68.22

 
Intrinsic value

$47.53

 
Up/down potential

-30%

 
Rating

sell

We calculate the intrinsic value of BEAT 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 2.3

 

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, %
  12.90
  12.11
  11.40
  10.76
  10.18
  9.66
  9.20
  8.78
  8.40
  8.06
  7.75
  7.48
  7.23
  7.01
  6.81
  6.63
  6.46
  6.32
  6.19
  6.07
  5.96
  5.86
  5.78
  5.70
  5.63
  5.57
  5.51
  5.46
  5.41
  5.37
Revenue, $m
  450
  505
  563
  623
  687
  753
  822
  894
  969
  1,048
  1,129
  1,213
  1,301
  1,392
  1,487
  1,586
  1,688
  1,795
  1,906
  2,021
  2,142
  2,267
  2,398
  2,535
  2,678
  2,827
  2,983
  3,146
  3,316
  3,494
Variable operating expenses, $m
  244
  273
  304
  336
  370
  405
  442
  481
  521
  562
  601
  645
  692
  741
  791
  843
  898
  955
  1,014
  1,075
  1,139
  1,206
  1,276
  1,349
  1,425
  1,504
  1,587
  1,673
  1,764
  1,859
Fixed operating expenses, $m
  139
  142
  145
  148
  152
  155
  158
  162
  165
  169
  173
  177
  180
  184
  188
  193
  197
  201
  206
  210
  215
  220
  224
  229
  234
  239
  245
  250
  256
  261
Total operating expenses, $m
  383
  415
  449
  484
  522
  560
  600
  643
  686
  731
  774
  822
  872
  925
  979
  1,036
  1,095
  1,156
  1,220
  1,285
  1,354
  1,426
  1,500
  1,578
  1,659
  1,743
  1,832
  1,923
  2,020
  2,120
Operating income, $m
  67
  90
  113
  138
  165
  193
  222
  252
  284
  316
  356
  391
  428
  467
  507
  549
  593
  639
  686
  736
  788
  842
  898
  957
  1,019
  1,084
  1,151
  1,222
  1,296
  1,374
EBITDA, $m
  97
  123
  150
  178
  208
  240
  273
  307
  343
  380
  419
  460
  502
  546
  591
  639
  689
  740
  794
  850
  909
  970
  1,034
  1,100
  1,170
  1,243
  1,320
  1,400
  1,484
  1,571
Interest expense (income), $m
  0
  11
  13
  15
  17
  19
  21
  24
  26
  29
  32
  34
  37
  41
  44
  47
  50
  54
  58
  62
  66
  70
  74
  79
  84
  89
  94
  99
  105
  111
  117
Earnings before tax, $m
  56
  77
  99
  122
  146
  171
  198
  226
  255
  285
  321
  354
  388
  423
  460
  499
  539
  581
  625
  670
  718
  767
  819
  873
  930
  990
  1,052
  1,117
  1,185
  1,257
Tax expense, $m
  15
  21
  27
  33
  39
  46
  53
  61
  69
  77
  87
  96
  105
  114
  124
  135
  146
  157
  169
  181
  194
  207
  221
  236
  251
  267
  284
  302
  320
  339
Net income, $m
  41
  56
  72
  89
  107
  125
  144
  165
  186
  208
  234
  258
  283
  309
  336
  364
  394
  424
  456
  489
  524
  560
  598
  638
  679
  722
  768
  815
  865
  917

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
  620
  695
  774
  857
  944
  1,036
  1,131
  1,230
  1,334
  1,441
  1,553
  1,669
  1,790
  1,915
  2,045
  2,181
  2,322
  2,469
  2,621
  2,780
  2,946
  3,119
  3,299
  3,487
  3,683
  3,888
  4,103
  4,327
  4,561
  4,806
Adjusted assets (=assets-cash), $m
  620
  695
  774
  857
  944
  1,036
  1,131
  1,230
  1,334
  1,441
  1,553
  1,669
  1,790
  1,915
  2,045
  2,181
  2,322
  2,469
  2,621
  2,780
  2,946
  3,119
  3,299
  3,487
  3,683
  3,888
  4,103
  4,327
  4,561
  4,806
Revenue / Adjusted assets
  0.726
  0.727
  0.727
  0.727
  0.728
  0.727
  0.727
  0.727
  0.726
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
Average production assets, $m
  262
  294
  327
  363
  400
  438
  479
  521
  564
  610
  657
  706
  757
  810
  865
  923
  982
  1,044
  1,109
  1,176
  1,247
  1,320
  1,396
  1,475
  1,559
  1,645
  1,736
  1,831
  1,930
  2,033
Working capital, $m
  26
  29
  32
  36
  39
  43
  47
  51
  55
  60
  64
  69
  74
  79
  85
  90
  96
  102
  109
  115
  122
  129
  137
  145
  153
  161
  170
  179
  189
  199
Total debt, $m
  235
  272
  311
  352
  394
  439
  486
  535
  586
  638
  693
  750
  809
  871
  935
  1,002
  1,071
  1,143
  1,218
  1,296
  1,377
  1,462
  1,551
  1,643
  1,739
  1,840
  1,945
  2,055
  2,170
  2,291
Total liabilities, $m
  304
  341
  380
  421
  464
  509
  555
  604
  655
  708
  762
  819
  879
  940
  1,004
  1,071
  1,140
  1,212
  1,287
  1,365
  1,447
  1,531
  1,620
  1,712
  1,809
  1,909
  2,014
  2,124
  2,239
  2,360
Total equity, $m
  315
  354
  394
  436
  481
  527
  576
  626
  679
  733
  790
  849
  911
  975
  1,041
  1,110
  1,182
  1,257
  1,334
  1,415
  1,500
  1,587
  1,679
  1,775
  1,875
  1,979
  2,088
  2,202
  2,322
  2,446
Total liabilities and equity, $m
  619
  695
  774
  857
  945
  1,036
  1,131
  1,230
  1,334
  1,441
  1,552
  1,668
  1,790
  1,915
  2,045
  2,181
  2,322
  2,469
  2,621
  2,780
  2,947
  3,118
  3,299
  3,487
  3,684
  3,888
  4,102
  4,326
  4,561
  4,806
Debt-to-equity ratio
  0.750
  0.770
  0.790
  0.810
  0.820
  0.830
  0.840
  0.850
  0.860
  0.870
  0.880
  0.880
  0.890
  0.890
  0.900
  0.900
  0.910
  0.910
  0.910
  0.920
  0.920
  0.920
  0.920
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.940
Adjusted equity ratio
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509
  0.509

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  41
  56
  72
  89
  107
  125
  144
  165
  186
  208
  234
  258
  283
  309
  336
  364
  394
  424
  456
  489
  524
  560
  598
  638
  679
  722
  768
  815
  865
  917
Depreciation, amort., depletion, $m
  30
  33
  37
  40
  44
  47
  51
  55
  60
  64
  64
  69
  74
  79
  84
  90
  95
  101
  108
  114
  121
  128
  136
  143
  151
  160
  169
  178
  187
  197
Funds from operations, $m
  71
  89
  109
  129
  150
  172
  196
  220
  245
  272
  298
  327
  357
  388
  420
  454
  489
  525
  564
  603
  645
  688
  734
  781
  830
  882
  936
  993
  1,053
  1,115
Change in working capital, $m
  3
  3
  3
  3
  4
  4
  4
  4
  4
  4
  5
  5
  5
  5
  5
  6
  6
  6
  6
  7
  7
  7
  7
  8
  8
  8
  9
  9
  10
  10
Cash from operations, $m
  68
  86
  105
  125
  146
  169
  192
  216
  241
  267
  294
  322
  352
  383
  415
  448
  483
  519
  557
  597
  638
  681
  726
  773
  822
  874
  928
  984
  1,043
  1,105
Maintenance CAPEX, $m
  -23
  -25
  -29
  -32
  -35
  -39
  -43
  -46
  -51
  -55
  -59
  -64
  -69
  -74
  -79
  -84
  -90
  -95
  -101
  -108
  -114
  -121
  -128
  -136
  -143
  -151
  -160
  -169
  -178
  -187
New CAPEX, $m
  -30
  -32
  -34
  -35
  -37
  -39
  -40
  -42
  -44
  -45
  -47
  -49
  -51
  -53
  -55
  -57
  -60
  -62
  -65
  -67
  -70
  -73
  -76
  -80
  -83
  -87
  -91
  -95
  -99
  -104
Cash from investing activities, $m
  -53
  -57
  -63
  -67
  -72
  -78
  -83
  -88
  -95
  -100
  -106
  -113
  -120
  -127
  -134
  -141
  -150
  -157
  -166
  -175
  -184
  -194
  -204
  -216
  -226
  -238
  -251
  -264
  -277
  -291
Free cash flow, $m
  16
  29
  43
  58
  74
  91
  109
  128
  147
  167
  187
  209
  232
  256
  281
  307
  334
  362
  391
  422
  454
  487
  522
  558
  596
  636
  677
  721
  766
  814
Issuance/(repayment) of debt, $m
  35
  37
  39
  41
  43
  45
  47
  49
  51
  53
  55
  57
  59
  62
  64
  67
  69
  72
  75
  78
  81
  85
  88
  92
  96
  101
  105
  110
  115
  120
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  35
  37
  39
  41
  43
  45
  47
  49
  51
  53
  55
  57
  59
  62
  64
  67
  69
  72
  75
  78
  81
  85
  88
  92
  96
  101
  105
  110
  115
  120
Total cash flow (excl. dividends), $m
  51
  66
  82
  99
  117
  136
  156
  176
  198
  220
  242
  266
  291
  318
  345
  373
  403
  434
  466
  500
  535
  572
  610
  650
  692
  736
  782
  831
  881
  934
Retained Cash Flow (-), $m
  -36
  -38
  -40
  -42
  -44
  -46
  -48
  -51
  -53
  -55
  -57
  -59
  -61
  -64
  -66
  -69
  -72
  -75
  -78
  -81
  -84
  -88
  -92
  -96
  -100
  -104
  -109
  -114
  -119
  -125
Prev. year cash balance distribution, $m
  31
  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
  46
  28
  42
  57
  73
  90
  107
  126
  145
  165
  185
  207
  230
  254
  279
  304
  331
  359
  389
  419
  451
  484
  518
  555
  592
  632
  673
  717
  762
  809
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
  44
  25
  36
  47
  56
  65
  72
  79
  83
  87
  88
  88
  87
  85
  82
  77
  72
  66
  60
  53
  47
  40
  34
  28
  23
  18
  14
  11
  8
  6
Current shareholders' claim on cash, %
  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
  100.0

BioTelemetry, Inc. provides cardiac monitoring, cardiac monitoring device manufacturing, and centralized cardiac core laboratory services. The company operates in three segments: Healthcare, Research, and Technology. The Healthcare segment focuses on the diagnosis and monitoring of cardiac arrhythmias or heart rhythm disorders. It offers Mobile Cardiac Outpatient Telemetry and External Cardiac Ambulatory Telemetry services, which incorporates a lightweight patient-worn sensor attached to electrodes that capture two-channel electrocardiography (ECG) data, measuring electrical activity of the heart, on a compact wireless handheld monitor; event monitoring services to prescribe wireless event monitors, digital loop event monitors, memory loop event monitors, and non-loop event monitors; and a Holter and extended-wear Holter monitors to cardiologists and electrophysiologists. The Research Services segment provides cardiac monitoring, imaging, scientific consulting, and data management services for drug, medical treatment, and device trials to pharmaceutical companies and contract research organizations. Its centralized services include ECG, Holter monitoring, ambulatory blood pressure monitoring, echocardiography, multigated acquisition scan, imaging, protocol development, and expert reporting and statistical analysis. This segment also offers services in the cardiovascular, oncology, musculoskeletal, and neurologic therapeutic areas; and support services, such as project coordination, setup and management, equipment rental, data transfer, processing, analysis, and 24/7 customer support and site training. The Technology segment focuses on the manufacture, engineering, and development of non-invasive cardiac monitors for healthcare companies, clinics, and hospitals worldwide. This segment offers various devices, including cardiac event monitors, digital Holter monitors, and mobile cardiac telemetry monitors. BioTelemetry, Inc. is headquartered in Malvern, Pennsylvania.

FINANCIAL RATIOS  of  BioTelemetry, Inc. (BEAT)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
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 NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

BEAT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BEAT stock intrinsic value calculation we used $399 million for the last fiscal year's total revenue generated by BioTelemetry, Inc.. The default revenue input number comes from 0001 income statement of BioTelemetry, 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 BEAT stock valuation model: a) initial revenue growth rate of 12.9% 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 BEAT is calculated based on our internal credit rating of BioTelemetry, 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 BioTelemetry, 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 BEAT stock the variable cost ratio is equal to 54.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $136 million in the base year in the intrinsic value calculation for BEAT 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 BioTelemetry, Inc..

Corporate tax rate of 27% is the nominal tax rate for BioTelemetry, 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 BEAT 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 BEAT are equal to 58.2%.

Life of production assets of 10.3 years is the average useful life of capital assets used in BioTelemetry, 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 BEAT is equal to 5.7%. 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 - $310.485 million for BioTelemetry, 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 33.610 million for BioTelemetry, 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 BioTelemetry, Inc. at the current share price and the inputted number of shares is $2.3 billion.

CONTACT US       ASSET ALLOCATION

About X-FIN       Privacy policy       Terms of use       FAQ

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