Intrinsic value of BioMarin Pharmaceutical - BMRN

Previous Close

$94.75

  Intrinsic Value

$2.96

stock screener

  Rating & Target

str. sell

-97%

Previous close

$94.75

 
Intrinsic value

$2.96

 
Up/down potential

-97%

 
Rating

str. sell

We calculate the intrinsic value of BMRN 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 16.7

 

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, %
  17.50
  16.25
  15.13
  14.11
  13.20
  12.38
  11.64
  10.98
  10.38
  9.84
  9.36
  8.92
  8.53
  8.18
  7.86
  7.57
  7.32
  7.08
  6.88
  6.69
  6.52
  6.37
  6.23
  6.11
  6.00
  5.90
  5.81
  5.73
  5.65
  5.59
Revenue, $m
  1,544
  1,794
  2,066
  2,357
  2,668
  2,999
  3,348
  3,716
  4,101
  4,505
  4,927
  5,366
  5,824
  6,300
  6,795
  7,310
  7,845
  8,401
  8,978
  9,579
  10,203
  10,853
  11,529
  12,233
  12,967
  13,732
  14,529
  15,361
  16,230
  17,137
Variable operating expenses, $m
  2,641
  3,058
  3,510
  3,995
  4,513
  5,063
  5,645
  6,256
  6,899
  7,570
  8,201
  8,933
  9,695
  10,487
  11,312
  12,168
  13,058
  13,984
  14,945
  15,945
  16,984
  18,066
  19,192
  20,364
  21,585
  22,858
  24,185
  25,570
  27,016
  28,526
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
  2,641
  3,058
  3,510
  3,995
  4,513
  5,063
  5,645
  6,256
  6,899
  7,570
  8,201
  8,933
  9,695
  10,487
  11,312
  12,168
  13,058
  13,984
  14,945
  15,945
  16,984
  18,066
  19,192
  20,364
  21,585
  22,858
  24,185
  25,570
  27,016
  28,526
Operating income, $m
  -1,097
  -1,264
  -1,444
  -1,638
  -1,845
  -2,065
  -2,297
  -2,541
  -2,797
  -3,065
  -3,274
  -3,566
  -3,871
  -4,187
  -4,516
  -4,858
  -5,214
  -5,583
  -5,967
  -6,366
  -6,781
  -7,213
  -7,662
  -8,130
  -8,618
  -9,126
  -9,656
  -10,209
  -10,786
  -11,389
EBITDA, $m
  -947
  -1,100
  -1,267
  -1,446
  -1,637
  -1,839
  -2,053
  -2,279
  -2,515
  -2,763
  -3,021
  -3,291
  -3,572
  -3,864
  -4,167
  -4,483
  -4,811
  -5,152
  -5,506
  -5,874
  -6,257
  -6,656
  -7,071
  -7,502
  -7,952
  -8,421
  -8,910
  -9,421
  -9,953
  -10,510
Interest expense (income), $m
  9
  63
  77
  92
  108
  126
  145
  165
  185
  208
  231
  255
  280
  307
  334
  363
  393
  423
  456
  489
  524
  560
  597
  636
  677
  719
  763
  809
  857
  907
  959
Earnings before tax, $m
  -1,161
  -1,341
  -1,537
  -1,747
  -1,971
  -2,209
  -2,461
  -2,726
  -3,005
  -3,296
  -3,529
  -3,847
  -4,177
  -4,521
  -4,879
  -5,251
  -5,637
  -6,039
  -6,456
  -6,890
  -7,341
  -7,810
  -8,299
  -8,807
  -9,337
  -9,889
  -10,465
  -11,066
  -11,694
  -12,349
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
  -1,161
  -1,341
  -1,537
  -1,747
  -1,971
  -2,209
  -2,461
  -2,726
  -3,005
  -3,296
  -3,529
  -3,847
  -4,177
  -4,521
  -4,879
  -5,251
  -5,637
  -6,039
  -6,456
  -6,890
  -7,341
  -7,810
  -8,299
  -8,807
  -9,337
  -9,889
  -10,465
  -11,066
  -11,694
  -12,349

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
  4,336
  5,040
  5,803
  6,622
  7,496
  8,424
  9,405
  10,437
  11,521
  12,654
  13,839
  15,073
  16,359
  17,697
  19,088
  20,534
  22,036
  23,597
  25,220
  26,907
  28,661
  30,486
  32,385
  34,363
  36,424
  38,572
  40,812
  43,150
  45,589
  48,137
Adjusted assets (=assets-cash), $m
  4,336
  5,040
  5,803
  6,622
  7,496
  8,424
  9,405
  10,437
  11,521
  12,654
  13,839
  15,073
  16,359
  17,697
  19,088
  20,534
  22,036
  23,597
  25,220
  26,907
  28,661
  30,486
  32,385
  34,363
  36,424
  38,572
  40,812
  43,150
  45,589
  48,137
Revenue / Adjusted assets
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
Average production assets, $m
  1,426
  1,658
  1,909
  2,178
  2,466
  2,771
  3,094
  3,433
  3,790
  4,163
  4,552
  4,958
  5,381
  5,821
  6,279
  6,754
  7,249
  7,762
  8,296
  8,851
  9,428
  10,028
  10,653
  11,304
  11,982
  12,688
  13,425
  14,194
  14,996
  15,834
Working capital, $m
  418
  486
  560
  639
  723
  813
  907
  1,007
  1,111
  1,221
  1,335
  1,454
  1,578
  1,707
  1,842
  1,981
  2,126
  2,277
  2,433
  2,596
  2,765
  2,941
  3,124
  3,315
  3,514
  3,721
  3,937
  4,163
  4,398
  4,644
Total debt, $m
  1,428
  1,707
  2,009
  2,333
  2,679
  3,047
  3,435
  3,844
  4,273
  4,722
  5,191
  5,680
  6,189
  6,719
  7,270
  7,842
  8,437
  9,055
  9,698
  10,366
  11,061
  11,783
  12,536
  13,319
  14,135
  14,986
  15,873
  16,798
  17,764
  18,773
Total liabilities, $m
  1,717
  1,996
  2,298
  2,622
  2,968
  3,336
  3,724
  4,133
  4,562
  5,011
  5,480
  5,969
  6,478
  7,008
  7,559
  8,131
  8,726
  9,344
  9,987
  10,655
  11,350
  12,072
  12,825
  13,608
  14,424
  15,275
  16,162
  17,087
  18,053
  19,062
Total equity, $m
  2,619
  3,044
  3,505
  3,999
  4,527
  5,088
  5,680
  6,304
  6,958
  7,643
  8,359
  9,104
  9,881
  10,689
  11,529
  12,402
  13,310
  14,253
  15,233
  16,252
  17,311
  18,413
  19,561
  20,755
  22,000
  23,298
  24,651
  26,062
  27,536
  29,075
Total liabilities and equity, $m
  4,336
  5,040
  5,803
  6,621
  7,495
  8,424
  9,404
  10,437
  11,520
  12,654
  13,839
  15,073
  16,359
  17,697
  19,088
  20,533
  22,036
  23,597
  25,220
  26,907
  28,661
  30,485
  32,386
  34,363
  36,424
  38,573
  40,813
  43,149
  45,589
  48,137
Debt-to-equity ratio
  0.550
  0.560
  0.570
  0.580
  0.590
  0.600
  0.600
  0.610
  0.610
  0.620
  0.620
  0.620
  0.630
  0.630
  0.630
  0.630
  0.630
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.650
  0.650
Adjusted equity ratio
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604
  0.604

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -1,161
  -1,341
  -1,537
  -1,747
  -1,971
  -2,209
  -2,461
  -2,726
  -3,005
  -3,296
  -3,529
  -3,847
  -4,177
  -4,521
  -4,879
  -5,251
  -5,637
  -6,039
  -6,456
  -6,890
  -7,341
  -7,810
  -8,299
  -8,807
  -9,337
  -9,889
  -10,465
  -11,066
  -11,694
  -12,349
Depreciation, amort., depletion, $m
  151
  164
  177
  192
  208
  225
  243
  262
  282
  303
  253
  275
  299
  323
  349
  375
  403
  431
  461
  492
  524
  557
  592
  628
  666
  705
  746
  789
  833
  880
Funds from operations, $m
  -1,010
  -1,178
  -1,359
  -1,554
  -1,762
  -1,984
  -2,218
  -2,464
  -2,723
  -2,994
  -3,276
  -3,571
  -3,878
  -4,198
  -4,530
  -4,876
  -5,234
  -5,607
  -5,995
  -6,398
  -6,817
  -7,253
  -7,707
  -8,179
  -8,672
  -9,185
  -9,720
  -10,278
  -10,860
  -11,469
Change in working capital, $m
  62
  68
  74
  79
  84
  90
  95
  100
  105
  109
  114
  119
  124
  129
  134
  139
  145
  151
  157
  163
  169
  176
  183
  191
  199
  207
  216
  225
  235
  246
Cash from operations, $m
  -1,072
  -1,246
  -1,433
  -1,633
  -1,847
  -2,073
  -2,312
  -2,564
  -2,827
  -3,103
  -3,391
  -3,690
  -4,002
  -4,327
  -4,664
  -5,015
  -5,379
  -5,758
  -6,152
  -6,561
  -6,986
  -7,429
  -7,890
  -8,370
  -8,870
  -9,392
  -9,936
  -10,503
  -11,096
  -11,715
Maintenance CAPEX, $m
  -67
  -79
  -92
  -106
  -121
  -137
  -154
  -172
  -191
  -211
  -231
  -253
  -275
  -299
  -323
  -349
  -375
  -403
  -431
  -461
  -492
  -524
  -557
  -592
  -628
  -666
  -705
  -746
  -789
  -833
New CAPEX, $m
  -212
  -232
  -251
  -269
  -288
  -305
  -323
  -340
  -356
  -373
  -390
  -406
  -423
  -440
  -458
  -476
  -494
  -514
  -534
  -555
  -577
  -600
  -625
  -651
  -678
  -707
  -737
  -769
  -803
  -838
Cash from investing activities, $m
  -279
  -311
  -343
  -375
  -409
  -442
  -477
  -512
  -547
  -584
  -621
  -659
  -698
  -739
  -781
  -825
  -869
  -917
  -965
  -1,016
  -1,069
  -1,124
  -1,182
  -1,243
  -1,306
  -1,373
  -1,442
  -1,515
  -1,592
  -1,671
Free cash flow, $m
  -1,352
  -1,557
  -1,775
  -2,009
  -2,255
  -2,516
  -2,789
  -3,075
  -3,374
  -3,686
  -4,011
  -4,349
  -4,701
  -5,066
  -5,445
  -5,839
  -6,249
  -6,674
  -7,117
  -7,577
  -8,055
  -8,553
  -9,072
  -9,613
  -10,176
  -10,764
  -11,377
  -12,018
  -12,687
  -13,386
Issuance/(repayment) of debt, $m
  253
  279
  302
  324
  346
  368
  388
  409
  429
  449
  469
  489
  509
  530
  551
  572
  595
  618
  643
  668
  695
  723
  752
  783
  816
  851
  887
  926
  966
  1,009
Issuance/(repurchase) of shares, $m
  1,550
  1,767
  1,997
  2,241
  2,499
  2,770
  3,053
  3,350
  3,659
  3,981
  4,245
  4,593
  4,954
  5,329
  5,719
  6,124
  6,545
  6,982
  7,436
  7,909
  8,400
  8,913
  9,446
  10,002
  10,582
  11,187
  11,818
  12,478
  13,167
  13,887
Cash from financing (excl. dividends), $m  
  1,803
  2,046
  2,299
  2,565
  2,845
  3,138
  3,441
  3,759
  4,088
  4,430
  4,714
  5,082
  5,463
  5,859
  6,270
  6,696
  7,140
  7,600
  8,079
  8,577
  9,095
  9,636
  10,198
  10,785
  11,398
  12,038
  12,705
  13,404
  14,133
  14,896
Total cash flow (excl. dividends), $m
  452
  489
  523
  557
  590
  622
  653
  684
  714
  744
  702
  732
  762
  793
  825
  857
  891
  926
  962
  1,000
  1,040
  1,082
  1,126
  1,173
  1,222
  1,273
  1,328
  1,386
  1,446
  1,511
Retained Cash Flow (-), $m
  -1,550
  -1,767
  -1,997
  -2,241
  -2,499
  -2,770
  -3,053
  -3,350
  -3,659
  -3,981
  -4,245
  -4,593
  -4,954
  -5,329
  -5,719
  -6,124
  -6,545
  -6,982
  -7,436
  -7,909
  -8,400
  -8,913
  -9,446
  -10,002
  -10,582
  -11,187
  -11,818
  -12,478
  -13,167
  -13,887
Prev. year cash balance distribution, $m
  579
  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
  -519
  -1,278
  -1,474
  -1,684
  -1,909
  -2,148
  -2,401
  -2,666
  -2,945
  -3,237
  -3,542
  -3,860
  -4,192
  -4,536
  -4,895
  -5,267
  -5,654
  -6,056
  -6,474
  -6,909
  -7,360
  -7,831
  -8,320
  -8,829
  -9,360
  -9,913
  -10,490
  -11,092
  -11,721
  -12,377
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
  -498
  -1,170
  -1,282
  -1,387
  -1,480
  -1,559
  -1,622
  -1,667
  -1,692
  -1,697
  -1,682
  -1,647
  -1,594
  -1,523
  -1,437
  -1,338
  -1,230
  -1,115
  -997
  -878
  -761
  -650
  -545
  -450
  -364
  -289
  -225
  -172
  -128
  -93
Current shareholders' claim on cash, %
  89.6
  80.4
  72.5
  65.5
  59.2
  53.7
  48.8
  44.4
  40.5
  36.9
  33.8
  30.9
  28.3
  26.0
  23.9
  21.9
  20.1
  18.5
  17.0
  15.6
  14.4
  13.3
  12.2
  11.2
  10.4
  9.5
  8.8
  8.1
  7.5
  6.9

BioMarin Pharmaceutical Inc. is a biotechnology company. The Company develops and commercializes pharmaceuticals for various diseases and medical conditions. As of December 31, 2016, the Company's therapy portfolio consisted of five products, and multiple clinical and pre-clinical product candidates. Its commercial products include Aldurazyme (laronidase) for Mucopolysaccharidosis I (MPS I), Firdapse (amifampridine phosphate) for Lambert Eaton Myasthenic Syndrome (LEMS), Kuvan (sapropterin dihydrochloride) for phenylketonuria (PKU), Naglazyme (galsulfase) for Mucopolysaccharidosis VI (MPS VI) and Vimizim (elosulfase alpha) for Mucopolysaccharidosis IV Type A (MPS IV A). The Company is conducting clinical trials on various product candidates for the treatment of various diseases. Its clinical product candidates include Brineura, pegvaliase, vosoritide, BMN 270 and BMN 250.

FINANCIAL RATIOS  of  BioMarin Pharmaceutical (BMRN)

Valuation Ratios
P/E Ratio -26
Price to Sales 14.6
Price to Book 5.9
Price to Tangible Book
Price to Cash Flow -71.7
Price to Free Cash Flow -43.5
Growth Rates
Sales Growth Rate 25.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -35.1%
Cap. Spend. - 3 Yr. Gr. Rate 17.9%
Financial Strength
Quick Ratio 36
Current Ratio 0.1
LT Debt to Equity 23.9%
Total Debt to Equity 24.7%
Interest Coverage -91
Management Effectiveness
Return On Assets -16.1%
Ret/ On Assets - 3 Yr. Avg. -8.9%
Return On Total Capital -19.3%
Ret/ On T. Cap. - 3 Yr. Avg. -10.8%
Return On Equity -24.4%
Return On Equity - 3 Yr. Avg. -14.2%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 81.2%
Gross Margin - 3 Yr. Avg. 82.6%
EBITDA Margin -64.9%
EBITDA Margin - 3 Yr. Avg. -28.5%
Operating Margin -71.9%
Oper. Margin - 3 Yr. Avg. -32.3%
Pre-Tax Margin -74.4%
Pre-Tax Margin - 3 Yr. Avg. -36.2%
Net Profit Margin -56.4%
Net Profit Margin - 3 Yr. Avg. -31.2%
Effective Tax Rate 24.2%
Eff/ Tax Rate - 3 Yr. Avg. 2%
Payout Ratio 0%

BMRN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BMRN stock intrinsic value calculation we used $1313.646 million for the last fiscal year's total revenue generated by BioMarin Pharmaceutical. The default revenue input number comes from 0001 income statement of BioMarin Pharmaceutical. 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 BMRN stock valuation model: a) initial revenue growth rate of 17.5% 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 BMRN is calculated based on our internal credit rating of BioMarin Pharmaceutical, 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 BioMarin Pharmaceutical.
    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 BMRN stock the variable cost ratio is equal to 171.9%.

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 BMRN 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 BioMarin Pharmaceutical.

Corporate tax rate of 27% is the nominal tax rate for BioMarin Pharmaceutical. 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 BMRN 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 BMRN are equal to 92.4%.

Life of production assets of 18 years is the average useful life of capital assets used in BioMarin Pharmaceutical 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 BMRN is equal to 27.1%. 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 - $2808.663 million for BioMarin Pharmaceutical - 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 176.713 million for BioMarin Pharmaceutical 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 BioMarin Pharmaceutical at the current share price and the inputted number of shares is $16.7 billion.

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COMPANY NEWS

▶ Sangamo stock drops after J.P. Morgan downgrade   [Nov-14-18 08:19AM  MarketWatch]
▶ BioMarin Keeps on Pace for Its $2 Billion Goal   [Oct-31-18 10:07AM  Motley Fool]
▶ BioMarin: 3Q Earnings Snapshot   [Oct-25-18 05:29PM  Associated Press]
▶ Sangamo's Zinc Fingers Fail Again. Time to Walk Away?   [Sep-06-18 08:48AM  Motley Fool]
▶ How This Biotech IPO Is Facing Off Vs. BioMarin In Metabolic Disease   [Sep-05-18 03:20PM  Investor's Business Daily]
▶ Why Sangamo Therapeutics Shot 33.7% Higher in August   [Sep-03-18 01:23PM  Motley Fool]
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▶ 3 Biotech Stock Favorites to Bet on Today: Top Analysts   [Aug-13-18 08:00AM  TheStreet.com]
▶ Backed with $140M, startup launches three-pronged attack on liver diseases   [Aug-08-18 03:10PM  American City Business Journals]
▶ Why Spark Therapeutics' Crash On Hemophilia A Led This Rival To Pop   [Aug-07-18 04:43PM  Investor's Business Daily]
▶ BioMarin: 2Q Earnings Snapshot   [04:53PM  Associated Press]
▶ Why I Just Bought These 3 Stocks   [Jun-07-18 09:45AM  Motley Fool]
▶ Probing the Long Side of BioMarin   [11:53AM  TheStreet.com]
▶ Which Is the Best Hemophilia Stock to Buy Now?   [May-26-18 08:05AM  Motley Fool]
▶ BioMarin's New Rare-Disease Med Costs 50% More Than Expected   [May-25-18 12:18PM  Investor's Business Daily]
▶ Why Analysts Remain Bullish On This Hemophilia Gene-Therapy Play   [May-22-18 04:25PM  Investor's Business Daily]
▶ The FDA Is Trying To 'Shame' Celgene, Gilead Here's Why It Won't Work   [May-17-18 04:48PM  Investor's Business Daily]

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