Intrinsic value of Celgene - CELG

Previous Close

$102.02

  Intrinsic Value

$35.78

stock screener

  Rating & Target

str. sell

-65%

Previous close

$102.02

 
Intrinsic value

$35.78

 
Up/down potential

-65%

 
Rating

str. sell

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of CELG 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  21.32
  10.20
  9.68
  9.21
  8.79
  8.41
  8.07
  7.76
  7.49
  7.24
  7.01
  6.81
  6.63
  6.47
  6.32
  6.19
  6.07
  5.96
  5.87
  5.78
  5.70
  5.63
  5.57
  5.51
  5.46
  5.41
  5.37
  5.34
  5.30
  5.27
  5.24
Revenue, $m
  11,229
  12,374
  13,572
  14,822
  16,125
  17,482
  18,893
  20,360
  21,884
  23,468
  25,114
  26,825
  28,604
  30,454
  32,380
  34,384
  36,471
  38,646
  40,914
  43,279
  45,747
  48,323
  51,014
  53,826
  56,766
  59,839
  63,055
  66,419
  69,941
  73,628
  77,490
Variable operating expenses, $m
 
  8,538
  9,318
  10,131
  10,979
  11,861
  12,779
  13,734
  14,726
  15,756
  16,827
  17,454
  18,612
  19,816
  21,068
  22,372
  23,731
  25,146
  26,621
  28,160
  29,766
  31,442
  33,193
  35,023
  36,935
  38,935
  41,028
  43,217
  45,508
  47,908
  50,420
Fixed operating expenses, $m
 
  660
  677
  694
  711
  729
  747
  766
  785
  804
  824
  845
  866
  888
  910
  933
  956
  980
  1,004
  1,030
  1,055
  1,082
  1,109
  1,136
  1,165
  1,194
  1,224
  1,254
  1,286
  1,318
  1,351
Total operating expenses, $m
  8,419
  9,198
  9,995
  10,825
  11,690
  12,590
  13,526
  14,500
  15,511
  16,560
  17,651
  18,299
  19,478
  20,704
  21,978
  23,305
  24,687
  26,126
  27,625
  29,190
  30,821
  32,524
  34,302
  36,159
  38,100
  40,129
  42,252
  44,471
  46,794
  49,226
  51,771
Operating income, $m
  2,810
  3,176
  3,578
  3,998
  4,436
  4,892
  5,366
  5,860
  6,374
  6,907
  7,462
  8,526
  9,126
  9,751
  10,401
  11,079
  11,785
  12,521
  13,288
  14,089
  14,926
  15,799
  16,712
  17,667
  18,665
  19,710
  20,803
  21,948
  23,147
  24,403
  25,719
EBITDA, $m
  3,315
  4,070
  4,512
  4,973
  5,453
  5,954
  6,475
  7,017
  7,581
  8,167
  8,776
  9,409
  10,068
  10,754
  11,468
  12,211
  12,986
  13,793
  14,636
  15,515
  16,432
  17,391
  18,392
  19,440
  20,535
  21,681
  22,880
  24,136
  25,450
  26,828
  28,271
Interest expense (income), $m
  527
  510
  472
  544
  618
  696
  777
  861
  949
  1,040
  1,134
  1,232
  1,335
  1,441
  1,551
  1,666
  1,786
  1,910
  2,040
  2,175
  2,316
  2,464
  2,617
  2,778
  2,946
  3,121
  3,305
  3,497
  3,697
  3,908
  4,128
Earnings before tax, $m
  2,373
  2,666
  3,106
  3,454
  3,817
  4,196
  4,590
  4,999
  5,425
  5,868
  6,328
  7,294
  7,792
  8,310
  8,850
  9,413
  9,999
  10,610
  11,248
  11,914
  12,609
  13,336
  14,095
  14,889
  15,719
  16,589
  17,499
  18,452
  19,450
  20,495
  21,592
Tax expense, $m
  374
  720
  839
  933
  1,031
  1,133
  1,239
  1,350
  1,465
  1,584
  1,709
  1,969
  2,104
  2,244
  2,390
  2,541
  2,700
  2,865
  3,037
  3,217
  3,404
  3,601
  3,806
  4,020
  4,244
  4,479
  4,725
  4,982
  5,251
  5,534
  5,830
Net income, $m
  1,999
  1,946
  2,267
  2,522
  2,787
  3,063
  3,350
  3,649
  3,960
  4,283
  4,619
  5,324
  5,688
  6,067
  6,461
  6,871
  7,299
  7,746
  8,211
  8,697
  9,205
  9,735
  10,289
  10,869
  11,475
  12,110
  12,774
  13,470
  14,198
  14,962
  15,762

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  7,970
  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
  28,086
  22,176
  24,323
  26,564
  28,899
  31,330
  33,858
  36,487
  39,218
  42,057
  45,007
  48,074
  51,262
  54,578
  58,028
  61,620
  65,361
  69,258
  73,322
  77,560
  81,983
  86,601
  91,423
  96,463
  101,730
  107,239
  113,001
  119,031
  125,342
  131,951
  138,871
Adjusted assets (=assets-cash), $m
  20,116
  22,176
  24,323
  26,564
  28,899
  31,330
  33,858
  36,487
  39,218
  42,057
  45,007
  48,074
  51,262
  54,578
  58,028
  61,620
  65,361
  69,258
  73,322
  77,560
  81,983
  86,601
  91,423
  96,463
  101,730
  107,239
  113,001
  119,031
  125,342
  131,951
  138,871
Revenue / Adjusted assets
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
  0.558
Average production assets, $m
  11,090
  12,226
  13,409
  14,645
  15,932
  17,272
  18,666
  20,115
  21,621
  23,186
  24,813
  26,503
  28,261
  30,089
  31,991
  33,971
  36,034
  38,182
  40,423
  42,759
  45,198
  47,743
  50,402
  53,180
  56,084
  59,121
  62,298
  65,622
  69,102
  72,745
  76,560
Working capital, $m
  7,909
  483
  529
  578
  629
  682
  737
  794
  853
  915
  979
  1,046
  1,116
  1,188
  1,263
  1,341
  1,422
  1,507
  1,596
  1,688
  1,784
  1,885
  1,990
  2,099
  2,214
  2,334
  2,459
  2,590
  2,728
  2,872
  3,022
Total debt, $m
  14,289
  12,761
  14,693
  16,709
  18,811
  20,999
  23,274
  25,640
  28,099
  30,654
  33,309
  36,068
  38,938
  41,922
  45,027
  48,260
  51,627
  55,135
  58,792
  62,606
  66,587
  70,743
  75,083
  79,618
  84,359
  89,317
  94,503
  99,930
  105,610
  111,558
  117,786
Total liabilities, $m
  21,486
  19,959
  21,891
  23,907
  26,009
  28,197
  30,472
  32,838
  35,297
  37,852
  40,507
  43,266
  46,136
  49,120
  52,225
  55,458
  58,825
  62,333
  65,990
  69,804
  73,785
  77,941
  82,281
  86,816
  91,557
  96,515
  101,701
  107,128
  112,808
  118,756
  124,984
Total equity, $m
  6,599
  2,218
  2,432
  2,656
  2,890
  3,133
  3,386
  3,649
  3,922
  4,206
  4,501
  4,807
  5,126
  5,458
  5,803
  6,162
  6,536
  6,926
  7,332
  7,756
  8,198
  8,660
  9,142
  9,646
  10,173
  10,724
  11,300
  11,903
  12,534
  13,195
  13,887
Total liabilities and equity, $m
  28,085
  22,177
  24,323
  26,563
  28,899
  31,330
  33,858
  36,487
  39,219
  42,058
  45,008
  48,073
  51,262
  54,578
  58,028
  61,620
  65,361
  69,259
  73,322
  77,560
  81,983
  86,601
  91,423
  96,462
  101,730
  107,239
  113,001
  119,031
  125,342
  131,951
  138,871
Debt-to-equity ratio
  2.165
  5.750
  6.040
  6.290
  6.510
  6.700
  6.870
  7.030
  7.160
  7.290
  7.400
  7.500
  7.600
  7.680
  7.760
  7.830
  7.900
  7.960
  8.020
  8.070
  8.120
  8.170
  8.210
  8.250
  8.290
  8.330
  8.360
  8.400
  8.430
  8.450
  8.480
Adjusted equity ratio
  -0.068
  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
  1,999
  1,946
  2,267
  2,522
  2,787
  3,063
  3,350
  3,649
  3,960
  4,283
  4,619
  5,324
  5,688
  6,067
  6,461
  6,871
  7,299
  7,746
  8,211
  8,697
  9,205
  9,735
  10,289
  10,869
  11,475
  12,110
  12,774
  13,470
  14,198
  14,962
  15,762
Depreciation, amort., depletion, $m
  505
  894
  934
  975
  1,018
  1,062
  1,109
  1,157
  1,207
  1,259
  1,314
  883
  942
  1,003
  1,066
  1,132
  1,201
  1,273
  1,347
  1,425
  1,507
  1,591
  1,680
  1,773
  1,869
  1,971
  2,077
  2,187
  2,303
  2,425
  2,552
Funds from operations, $m
  4,522
  2,840
  3,201
  3,496
  3,804
  4,125
  4,459
  4,806
  5,167
  5,543
  5,933
  6,208
  6,630
  7,070
  7,527
  8,004
  8,500
  9,018
  9,559
  10,122
  10,711
  11,326
  11,969
  12,642
  13,345
  14,080
  14,851
  15,657
  16,502
  17,387
  18,314
Change in working capital, $m
  546
  45
  47
  49
  51
  53
  55
  57
  59
  62
  64
  67
  69
  72
  75
  78
  81
  85
  88
  92
  96
  100
  105
  110
  115
  120
  125
  131
  137
  144
  151
Cash from operations, $m
  3,976
  2,796
  3,154
  3,448
  3,754
  4,072
  4,404
  4,749
  5,108
  5,481
  5,869
  6,141
  6,561
  6,997
  7,452
  7,926
  8,419
  8,933
  9,470
  10,030
  10,615
  11,226
  11,864
  12,532
  13,230
  13,961
  14,725
  15,526
  16,364
  17,243
  18,163
Maintenance CAPEX, $m
  0
  -370
  -408
  -447
  -488
  -531
  -576
  -622
  -671
  -721
  -773
  -827
  -883
  -942
  -1,003
  -1,066
  -1,132
  -1,201
  -1,273
  -1,347
  -1,425
  -1,507
  -1,591
  -1,680
  -1,773
  -1,869
  -1,971
  -2,077
  -2,187
  -2,303
  -2,425
New CAPEX, $m
  -236
  -1,136
  -1,183
  -1,235
  -1,287
  -1,340
  -1,394
  -1,449
  -1,506
  -1,565
  -1,626
  -1,691
  -1,758
  -1,828
  -1,902
  -1,980
  -2,062
  -2,149
  -2,240
  -2,337
  -2,438
  -2,546
  -2,659
  -2,778
  -2,904
  -3,037
  -3,177
  -3,324
  -3,480
  -3,643
  -3,815
Cash from investing activities, $m
  -1,002
  -1,506
  -1,591
  -1,682
  -1,775
  -1,871
  -1,970
  -2,071
  -2,177
  -2,286
  -2,399
  -2,518
  -2,641
  -2,770
  -2,905
  -3,046
  -3,194
  -3,350
  -3,513
  -3,684
  -3,863
  -4,053
  -4,250
  -4,458
  -4,677
  -4,906
  -5,148
  -5,401
  -5,667
  -5,946
  -6,240
Free cash flow, $m
  2,974
  1,290
  1,563
  1,765
  1,978
  2,201
  2,434
  2,678
  2,931
  3,195
  3,470
  3,623
  3,920
  4,227
  4,547
  4,879
  5,224
  5,583
  5,957
  6,346
  6,751
  7,174
  7,614
  8,074
  8,553
  9,054
  9,578
  10,125
  10,697
  11,296
  11,923
Issuance/(repayment) of debt, $m
  0
  -1,027
  1,932
  2,017
  2,102
  2,188
  2,276
  2,366
  2,459
  2,555
  2,655
  2,760
  2,869
  2,984
  3,105
  3,233
  3,367
  3,508
  3,657
  3,815
  3,981
  4,156
  4,340
  4,535
  4,741
  4,958
  5,186
  5,427
  5,680
  5,947
  6,229
Issuance/(repurchase) of shares, $m
  -1,793
  1,141
  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  
  -1,646
  114
  1,932
  2,017
  2,102
  2,188
  2,276
  2,366
  2,459
  2,555
  2,655
  2,760
  2,869
  2,984
  3,105
  3,233
  3,367
  3,508
  3,657
  3,815
  3,981
  4,156
  4,340
  4,535
  4,741
  4,958
  5,186
  5,427
  5,680
  5,947
  6,229
Total cash flow (excl. dividends), $m
  1,290
  1,404
  3,495
  3,782
  4,080
  4,389
  4,710
  5,044
  5,390
  5,750
  6,125
  6,383
  6,789
  7,212
  7,652
  8,112
  8,591
  9,092
  9,614
  10,161
  10,732
  11,329
  11,955
  12,609
  13,294
  14,012
  14,764
  15,552
  16,378
  17,244
  18,152
Retained Cash Flow (-), $m
  -680
  -3,088
  -215
  -224
  -234
  -243
  -253
  -263
  -273
  -284
  -295
  -307
  -319
  -332
  -345
  -359
  -374
  -390
  -406
  -424
  -442
  -462
  -482
  -504
  -527
  -551
  -576
  -603
  -631
  -661
  -692
Prev. year cash balance distribution, $m
 
  7,469
  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
 
  5,786
  3,280
  3,558
  3,846
  4,146
  4,457
  4,781
  5,117
  5,466
  5,830
  6,077
  6,470
  6,880
  7,307
  7,752
  8,217
  8,702
  9,208
  9,737
  10,290
  10,868
  11,472
  12,105
  12,767
  13,461
  14,188
  14,949
  15,747
  16,583
  17,460
Discount rate, %
 
  4.70
  4.94
  5.18
  5.44
  5.71
  6.00
  6.30
  6.61
  6.94
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.77
  11.31
  11.88
  12.47
  13.09
  13.75
  14.44
  15.16
  15.92
  16.71
  17.55
  18.42
  19.35
PV of cash for distribution, $m
 
  5,526
  2,979
  3,058
  3,112
  3,140
  3,142
  3,117
  3,066
  2,987
  2,884
  2,699
  2,558
  2,399
  2,226
  2,041
  1,849
  1,654
  1,460
  1,271
  1,090
  921
  766
  625
  502
  395
  305
  230
  170
  123
  87
Current shareholders' claim on cash, %
  100
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

Celgene Corporation is an integrated global biopharmaceutical company. The Company, together with its subsidiaries, is engaged in the discovery, development and commercialization of therapies for the treatment of cancer and inflammatory diseases through solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. Its commercial-stage products include REVLIMID (lenalidomide), POMALYST/IMNOVID (pomalidomide), OTEZLA (apremilast), ABRAXANE (paclitaxel albumin-bound particles for injectable suspension), VIDAZA, azacitidine for injection (generic version of VIDAZA) and THALOMID (thalidomide). Its clinical trial activity includes trials across the disease areas of hematology, solid tumors, and inflammation and immunology. The Company also markets ISTODAX, which is an epigenetic modifier. The Company is also evaluating AG-221 (enasidenib) in combination with VIDAZA in newly diagnosed acute myeloid leukemia with isocitrate dehydrogenase-2 mutations.

FINANCIAL RATIOS  of  Celgene (CELG)

Valuation Ratios
P/E Ratio 39.7
Price to Sales 7.1
Price to Book 12
Price to Tangible Book
Price to Cash Flow 20
Price to Free Cash Flow 21.2
Growth Rates
Sales Growth Rate 21.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -17.5%
Cap. Spend. - 3 Yr. Gr. Rate 11.2%
Financial Strength
Quick Ratio 16
Current Ratio 0.2
LT Debt to Equity 208.9%
Total Debt to Equity 216.5%
Interest Coverage 6
Management Effectiveness
Return On Assets 8.9%
Ret/ On Assets - 3 Yr. Avg. 10.4%
Return On Total Capital 9.8%
Ret/ On T. Cap. - 3 Yr. Avg. 12.1%
Return On Equity 31.9%
Return On Equity - 3 Yr. Avg. 30.2%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 96.1%
Gross Margin - 3 Yr. Avg. 95.5%
EBITDA Margin 30.3%
EBITDA Margin - 3 Yr. Avg. 32.3%
Operating Margin 25%
Oper. Margin - 3 Yr. Avg. 27.2%
Pre-Tax Margin 21.1%
Pre-Tax Margin - 3 Yr. Avg. 24.4%
Net Profit Margin 17.8%
Net Profit Margin - 3 Yr. Avg. 20.4%
Effective Tax Rate 15.8%
Eff/ Tax Rate - 3 Yr. Avg. 16.9%
Payout Ratio 0%

CELG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CELG stock intrinsic value calculation we used $11229 million for the last fiscal year's total revenue generated by Celgene. The default revenue input number comes from 2016 income statement of Celgene. 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 CELG stock valuation model: a) initial revenue growth rate of 10.2% 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 4.7%, whose default value for CELG is calculated based on our internal credit rating of Celgene, 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 Celgene.
    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 CELG stock the variable cost ratio is equal to 69.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $644 million in the base year in the intrinsic value calculation for CELG 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 3.7% for Celgene.

Corporate tax rate of 27% is the nominal tax rate for Celgene. 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 CELG 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 CELG are equal to 98.8%.

Life of production assets of 31.6 years is the average useful life of capital assets used in Celgene 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 CELG is equal to 3.9%. 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 - $6599 million for Celgene - 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 790.245 million for Celgene 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 Celgene at the current share price and the inputted number of shares is $80.6 billion.

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COMPANY NEWS

▶ What's Juno Therapeutics Worth to Celgene?   [Jan-17-18 10:00PM  Motley Fool]
▶ What Happened in the Stock Market Today   [05:03PM  Motley Fool]
▶ 5 Big Biotech Stocks To Buy In 2018   [03:14PM  InvestorPlace]
▶ How a Juno Takeover Could Boost Celgene   [01:00PM  Investopedia]
▶ Why Celgene's Rumored Acquisition Of Juno Actually Makes Sense   [12:53PM  Investor's Business Daily]
▶ [$$] Celgene Can't Put Away Its Wallet Yet   [12:08PM  The Wall Street Journal]
▶ Juno's Stock High on Possible Acquisition   [11:16AM  GuruFocus.com]
▶ Celgene's 3 Key Financial Ratios (CELG)   [10:22AM  Investopedia]
▶ [$$] Celgene in Talks to Buy Juno Therapeutics   [12:09AM  The Wall Street Journal]
▶ Celgene in talks to buy Juno Therapeutics on heels of Impact deal   [Jan-16-18 11:00PM  American City Business Journals]
▶ Deal Buzz Sends Juno Shares Soaring   [06:33PM  TheStreet.com]
▶ [$$] Celgene in Talks to Buy Juno Therapeutics   [05:18PM  The Wall Street Journal]
▶ Celgene in Talks to Buy Juno Therapeutics   [05:18PM  The Wall Street Journal]
▶ Will 2018 Be Biogen Inc.'s Best Year Yet?   [Jan-14-18 08:18AM  Motley Fool]
▶ David Rolfe Comments on Celgene   [05:54PM  GuruFocus.com]
▶ What bluebird bio Wants You to Know About Its Business   [Jan-11-18 07:31PM  Motley Fool]
▶ How Mylans Europe Segment Performed in 3Q17   [07:33AM  Market Realist]
▶ Exploring Ioniss 3Q17 Quarterly Revenue Trend   [Jan-10-18 04:10PM  Market Realist]
▶ Yes, There's Hope for Celgene. Really.   [12:08PM  Barrons.com]
▶ Celgene CEO on deal to acquire Impact Biomedicines   [09:27AM  Fox Business Videos]
▶ 3 Top Healthcare Stocks to Buy in January   [08:21AM  Motley Fool]
▶ [$$] Celgene Cant Cure the Biotech Blues   [12:57AM  The Wall Street Journal]
▶ Celgene Earnings Beat Views; Biotech Buys Impact Biomedicines   [04:58PM  Investor's Business Daily]
▶ [$$] Celgene Can't Cure the Biotech Blues   [01:36PM  The Wall Street Journal]
▶ Celgene buys Impact Biomedicines in deal that could reach $7 billion   [09:50AM  American City Business Journals]
▶ Celgene's Deal Won't Move the Dial   [09:27AM  Bloomberg]
▶ Top 3 Healthcare Stocks for 2018   [08:22AM  Investopedia]
▶ [$$] Celgene to Buy Impact Biomedicines   [12:12AM  The Wall Street Journal]
▶ Whats News: Business & Finance   [12:11AM  The Wall Street Journal]
▶ [$$] Celgene to Buy Impact Biomedicines   [07:13PM  The Wall Street Journal]
Financial statements of CELG
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