Intrinsic value of Celgene Corporation - CELG

Previous Close

$96.51

  Intrinsic Value

$133.82

stock screener

  Rating & Target

buy

+39%

Previous close

$96.51

 
Intrinsic value

$133.82

 
Up/down potential

+39%

 
Rating

buy

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

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 67.8

 

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, %
  15.90
  14.81
  13.83
  12.95
  12.15
  11.44
  10.79
  10.21
  9.69
  9.22
  8.80
  8.42
  8.08
  7.77
  7.49
  7.24
  7.02
  6.82
  6.64
  6.47
  6.33
  6.19
  6.07
  5.97
  5.87
  5.78
  5.70
  5.63
  5.57
  5.51
Revenue, $m
  17,711
  20,334
  23,146
  26,142
  29,319
  32,672
  36,198
  39,895
  43,761
  47,798
  52,004
  56,383
  60,938
  65,673
  70,594
  75,708
  81,023
  86,547
  92,290
  98,264
  104,479
  110,949
  117,688
  124,709
  132,029
  139,663
  147,630
  155,947
  164,634
  173,711
Variable operating expenses, $m
  11,278
  12,928
  14,697
  16,581
  18,580
  20,689
  22,907
  25,233
  27,665
  30,204
  32,713
  35,468
  38,333
  41,312
  44,408
  47,625
  50,968
  54,443
  58,056
  61,813
  65,723
  69,793
  74,032
  78,449
  83,053
  87,856
  92,867
  98,099
  103,564
  109,274
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
  11,278
  12,928
  14,697
  16,581
  18,580
  20,689
  22,907
  25,233
  27,665
  30,204
  32,713
  35,468
  38,333
  41,312
  44,408
  47,625
  50,968
  54,443
  58,056
  61,813
  65,723
  69,793
  74,032
  78,449
  83,053
  87,856
  92,867
  98,099
  103,564
  109,274
Operating income, $m
  6,433
  7,406
  8,449
  9,561
  10,739
  11,983
  13,291
  14,662
  16,096
  17,594
  19,291
  20,915
  22,605
  24,361
  26,187
  28,084
  30,055
  32,104
  34,235
  36,451
  38,756
  41,156
  43,656
  46,260
  48,975
  51,807
  54,763
  57,848
  61,070
  64,437
EBITDA, $m
  6,979
  8,013
  9,121
  10,302
  11,554
  12,875
  14,265
  15,722
  17,245
  18,836
  20,494
  22,219
  24,014
  25,880
  27,820
  29,835
  31,929
  34,106
  36,370
  38,724
  41,173
  43,723
  46,378
  49,145
  52,030
  55,038
  58,178
  61,456
  64,879
  68,456
Interest expense (income), $m
  527
  1,095
  1,342
  1,609
  1,895
  2,200
  2,524
  2,865
  3,224
  3,600
  3,994
  4,405
  4,833
  5,279
  5,743
  6,225
  6,726
  7,247
  7,788
  8,351
  8,935
  9,543
  10,176
  10,835
  11,521
  12,236
  12,981
  13,759
  14,570
  15,417
  16,301
Earnings before tax, $m
  5,338
  6,064
  6,840
  7,666
  8,539
  9,459
  10,426
  11,438
  12,496
  13,599
  14,886
  16,082
  17,325
  18,618
  19,962
  21,358
  22,808
  24,316
  25,884
  27,515
  29,213
  30,980
  32,821
  34,739
  36,739
  38,826
  41,004
  43,278
  45,654
  48,136
Tax expense, $m
  1,441
  1,637
  1,847
  2,070
  2,305
  2,554
  2,815
  3,088
  3,374
  3,672
  4,019
  4,342
  4,678
  5,027
  5,390
  5,767
  6,158
  6,565
  6,989
  7,429
  7,887
  8,365
  8,862
  9,380
  9,920
  10,483
  11,071
  11,685
  12,326
  12,997
Net income, $m
  3,897
  4,427
  4,993
  5,596
  6,233
  6,905
  7,611
  8,350
  9,122
  9,928
  10,866
  11,740
  12,648
  13,591
  14,572
  15,591
  16,650
  17,751
  18,895
  20,086
  21,325
  22,615
  23,959
  25,359
  26,820
  28,343
  29,933
  31,593
  33,327
  35,139

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
  38,252
  43,917
  49,990
  56,462
  63,323
  70,565
  78,181
  86,166
  94,517
  103,234
  112,320
  121,778
  131,615
  141,843
  152,472
  163,517
  174,996
  186,927
  199,331
  212,233
  225,657
  239,631
  254,185
  269,350
  285,159
  301,648
  318,855
  336,819
  355,581
  375,186
Adjusted assets (=assets-cash), $m
  38,252
  43,917
  49,990
  56,462
  63,323
  70,565
  78,181
  86,166
  94,517
  103,234
  112,320
  121,778
  131,615
  141,843
  152,472
  163,517
  174,996
  186,927
  199,331
  212,233
  225,657
  239,631
  254,185
  269,350
  285,159
  301,648
  318,855
  336,819
  355,581
  375,186
Revenue / Adjusted assets
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
Average production assets, $m
  12,291
  14,112
  16,063
  18,143
  20,347
  22,674
  25,121
  27,687
  30,370
  33,172
  36,091
  39,130
  42,291
  45,577
  48,993
  52,542
  56,230
  60,064
  64,049
  68,195
  72,509
  76,999
  81,675
  86,548
  91,628
  96,926
  102,455
  108,227
  114,256
  120,555
Working capital, $m
  -620
  -712
  -810
  -915
  -1,026
  -1,144
  -1,267
  -1,396
  -1,532
  -1,673
  -1,820
  -1,973
  -2,133
  -2,299
  -2,471
  -2,650
  -2,836
  -3,029
  -3,230
  -3,439
  -3,657
  -3,883
  -4,119
  -4,365
  -4,621
  -4,888
  -5,167
  -5,458
  -5,762
  -6,080
Total debt, $m
  24,846
  29,792
  35,094
  40,744
  46,733
  53,055
  59,704
  66,675
  73,966
  81,576
  89,507
  97,764
  106,352
  115,281
  124,560
  134,203
  144,223
  154,639
  165,468
  176,731
  188,450
  200,650
  213,355
  226,594
  240,396
  254,791
  269,813
  285,495
  301,874
  318,989
Total liabilities, $m
  33,394
  38,340
  43,642
  49,292
  55,281
  61,603
  68,252
  75,223
  82,514
  90,124
  98,055
  106,312
  114,900
  123,829
  133,108
  142,751
  152,771
  163,187
  174,016
  185,279
  196,998
  209,198
  221,903
  235,142
  248,944
  263,339
  278,361
  294,043
  310,422
  327,537
Total equity, $m
  4,858
  5,577
  6,349
  7,171
  8,042
  8,962
  9,929
  10,943
  12,004
  13,111
  14,265
  15,466
  16,715
  18,014
  19,364
  20,767
  22,224
  23,740
  25,315
  26,954
  28,658
  30,433
  32,281
  34,207
  36,215
  38,309
  40,495
  42,776
  45,159
  47,649
Total liabilities and equity, $m
  38,252
  43,917
  49,991
  56,463
  63,323
  70,565
  78,181
  86,166
  94,518
  103,235
  112,320
  121,778
  131,615
  141,843
  152,472
  163,518
  174,995
  186,927
  199,331
  212,233
  225,656
  239,631
  254,184
  269,349
  285,159
  301,648
  318,856
  336,819
  355,581
  375,186
Debt-to-equity ratio
  5.110
  5.340
  5.530
  5.680
  5.810
  5.920
  6.010
  6.090
  6.160
  6.220
  6.270
  6.320
  6.360
  6.400
  6.430
  6.460
  6.490
  6.510
  6.540
  6.560
  6.580
  6.590
  6.610
  6.620
  6.640
  6.650
  6.660
  6.670
  6.680
  6.690
Adjusted equity ratio
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127
  0.127

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  3,897
  4,427
  4,993
  5,596
  6,233
  6,905
  7,611
  8,350
  9,122
  9,928
  10,866
  11,740
  12,648
  13,591
  14,572
  15,591
  16,650
  17,751
  18,895
  20,086
  21,325
  22,615
  23,959
  25,359
  26,820
  28,343
  29,933
  31,593
  33,327
  35,139
Depreciation, amort., depletion, $m
  546
  607
  672
  741
  815
  893
  974
  1,060
  1,149
  1,242
  1,203
  1,304
  1,410
  1,519
  1,633
  1,751
  1,874
  2,002
  2,135
  2,273
  2,417
  2,567
  2,723
  2,885
  3,054
  3,231
  3,415
  3,608
  3,809
  4,019
Funds from operations, $m
  4,443
  5,034
  5,666
  6,337
  7,048
  7,798
  8,585
  9,409
  10,271
  11,170
  12,070
  13,044
  14,057
  15,111
  16,205
  17,342
  18,524
  19,753
  21,030
  22,359
  23,742
  25,182
  26,682
  28,244
  29,874
  31,574
  33,348
  35,201
  37,136
  39,158
Change in working capital, $m
  -85
  -92
  -98
  -105
  -111
  -117
  -123
  -129
  -135
  -141
  -147
  -153
  -159
  -166
  -172
  -179
  -186
  -193
  -201
  -209
  -218
  -226
  -236
  -246
  -256
  -267
  -279
  -291
  -304
  -318
Cash from operations, $m
  4,528
  5,126
  5,764
  6,442
  7,159
  7,915
  8,708
  9,539
  10,406
  11,311
  12,217
  13,197
  14,217
  15,276
  16,377
  17,521
  18,710
  19,946
  21,231
  22,568
  23,960
  25,408
  26,917
  28,490
  30,130
  31,841
  33,627
  35,492
  37,440
  39,476
Maintenance CAPEX, $m
  -353
  -410
  -470
  -535
  -605
  -678
  -756
  -837
  -923
  -1,012
  -1,106
  -1,203
  -1,304
  -1,410
  -1,519
  -1,633
  -1,751
  -1,874
  -2,002
  -2,135
  -2,273
  -2,417
  -2,567
  -2,723
  -2,885
  -3,054
  -3,231
  -3,415
  -3,608
  -3,809
New CAPEX, $m
  -1,693
  -1,820
  -1,951
  -2,080
  -2,205
  -2,327
  -2,447
  -2,566
  -2,683
  -2,801
  -2,919
  -3,039
  -3,161
  -3,286
  -3,415
  -3,549
  -3,688
  -3,834
  -3,986
  -4,146
  -4,313
  -4,490
  -4,676
  -4,873
  -5,080
  -5,298
  -5,529
  -5,772
  -6,029
  -6,299
Cash from investing activities, $m
  -2,046
  -2,230
  -2,421
  -2,615
  -2,810
  -3,005
  -3,203
  -3,403
  -3,606
  -3,813
  -4,025
  -4,242
  -4,465
  -4,696
  -4,934
  -5,182
  -5,439
  -5,708
  -5,988
  -6,281
  -6,586
  -6,907
  -7,243
  -7,596
  -7,965
  -8,352
  -8,760
  -9,187
  -9,637
  -10,108
Free cash flow, $m
  2,482
  2,896
  3,342
  3,827
  4,350
  4,910
  5,505
  6,136
  6,800
  7,498
  8,192
  8,955
  9,751
  10,580
  11,443
  12,339
  13,271
  14,238
  15,244
  16,288
  17,373
  18,501
  19,674
  20,895
  22,165
  23,488
  24,867
  26,304
  27,803
  29,368
Issuance/(repayment) of debt, $m
  4,576
  4,946
  5,302
  5,650
  5,990
  6,322
  6,649
  6,971
  7,291
  7,610
  7,931
  8,257
  8,588
  8,928
  9,279
  9,643
  10,021
  10,416
  10,829
  11,263
  11,719
  12,199
  12,705
  13,239
  13,802
  14,395
  15,022
  15,682
  16,380
  17,115
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  
  4,576
  4,946
  5,302
  5,650
  5,990
  6,322
  6,649
  6,971
  7,291
  7,610
  7,931
  8,257
  8,588
  8,928
  9,279
  9,643
  10,021
  10,416
  10,829
  11,263
  11,719
  12,199
  12,705
  13,239
  13,802
  14,395
  15,022
  15,682
  16,380
  17,115
Total cash flow (excl. dividends), $m
  7,058
  7,841
  8,644
  9,477
  10,340
  11,232
  12,154
  13,107
  14,091
  15,108
  16,123
  17,212
  18,340
  19,509
  20,722
  21,982
  23,291
  24,654
  26,073
  27,551
  29,092
  30,701
  32,380
  34,134
  35,967
  37,884
  39,889
  41,987
  44,183
  46,483
Retained Cash Flow (-), $m
  -682
  -719
  -771
  -822
  -871
  -920
  -967
  -1,014
  -1,061
  -1,107
  -1,154
  -1,201
  -1,249
  -1,299
  -1,350
  -1,403
  -1,458
  -1,515
  -1,575
  -1,638
  -1,705
  -1,775
  -1,848
  -1,926
  -2,008
  -2,094
  -2,185
  -2,281
  -2,383
  -2,490
Prev. year cash balance distribution, $m
  1,985
  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
  8,361
  7,122
  7,873
  8,655
  9,468
  10,312
  11,187
  12,092
  13,030
  14,001
  14,969
  16,011
  17,090
  18,210
  19,372
  20,579
  21,834
  23,139
  24,497
  25,912
  27,387
  28,926
  30,531
  32,208
  33,959
  35,790
  37,703
  39,705
  41,800
  43,993
Discount rate, %
  6.70
  7.04
  7.39
  7.76
  8.14
  8.55
  8.98
  9.43
  9.90
  10.39
  10.91
  11.46
  12.03
  12.63
  13.27
  13.93
  14.63
  15.36
  16.12
  16.93
  17.78
  18.67
  19.60
  20.58
  21.61
  22.69
  23.82
  25.01
  26.26
  27.58
PV of cash for distribution, $m
  7,836
  6,217
  6,357
  6,420
  6,401
  6,303
  6,128
  5,882
  5,572
  5,208
  4,790
  4,355
  3,902
  3,443
  2,990
  2,554
  2,145
  1,768
  1,431
  1,135
  882
  670
  498
  361
  255
  176
  118
  77
  48
  30
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

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 Corporation (CELG)

Valuation Ratios
P/E Ratio 37.6
Price to Sales 6.7
Price to Book 11.4
Price to Tangible Book
Price to Cash Flow 18.9
Price to Free Cash Flow 20.1
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 $15281 million for the last fiscal year's total revenue generated by Celgene Corporation. The default revenue input number comes from 0001 income statement of Celgene Corporation. 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 15.9% 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 6.7%, whose default value for CELG is calculated based on our internal credit rating of Celgene Corporation, 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 Corporation.
    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 63.8%.

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 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 5.4% for Celgene Corporation.

Corporate tax rate of 27% is the nominal tax rate for Celgene Corporation. 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 69.4%.

Life of production assets of 31.5 years is the average useful life of capital assets used in Celgene Corporation 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 -3.5%. 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 - $6161 million for Celgene Corporation - 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 702.351 million for Celgene Corporation 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 Corporation at the current share price and the inputted number of shares is $67.8 billion.

RELATED COMPANIES Price Int.Val. Rating
ABBV AbbVie Inc. 78.69 31.53  str.sell
AZN Astrazeneca PL 39.67 24.54  sell
EPZM Epizyme, Inc. 11.63 0.74  str.sell
AMGN Amgen Inc. 176.08 157.83  hold
BLUE bluebird bio, 117.66 8.46  str.sell
OMED OncoMed Pharma 0.940 0.31  str.sell
XLRN Acceleron Phar 37.63 1.39  str.sell
LLY Eli Lilly and 111.74 89.42  sell

CONTACT US      

About X-FIN       Privacy policy       Terms of use      

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