Intrinsic value of Celgene - CELG

Previous Close

$85.23

  Intrinsic Value

$134.98

stock screener

  Rating & Target

str. buy

+58%

Previous close

$85.23

 
Intrinsic value

$134.98

 
Up/down potential

+58%

 
Rating

str. 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 2017), $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 66.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  15.80
  14.72
  13.75
  12.87
  12.09
  11.38
  10.74
  10.17
  9.65
  9.18
  8.77
  8.39
  8.05
  7.75
  7.47
  7.22
  7.00
  6.80
  6.62
  6.46
  6.31
  6.18
  6.06
  5.96
  5.86
  5.78
  5.70
  5.63
  5.57
  5.51
Revenue, $m
  15,057
  17,274
  19,649
  22,178
  24,859
  27,687
  30,660
  33,777
  37,036
  40,438
  43,982
  47,672
  51,510
  55,499
  59,646
  63,954
  68,432
  73,086
  77,925
  82,958
  88,195
  93,647
  99,326
  105,243
  111,411
  117,846
  124,560
  131,571
  138,893
  146,544
Variable operating expenses, $m
  1,958
  2,051
  2,150
  2,255
  2,367
  2,485
  2,609
  2,739
  2,875
  3,016
  1,834
  1,988
  2,148
  2,314
  2,487
  2,667
  2,854
  3,048
  3,250
  3,459
  3,678
  3,905
  4,142
  4,389
  4,646
  4,914
  5,194
  5,487
  5,792
  6,111
Fixed operating expenses, $m
  6,737
  6,885
  7,037
  7,192
  7,350
  7,511
  7,677
  7,846
  8,018
  8,195
  8,375
  8,559
  8,747
  8,940
  9,137
  9,338
  9,543
  9,753
  9,967
  10,187
  10,411
  10,640
  10,874
  11,113
  11,358
  11,608
  11,863
  12,124
  12,391
  12,663
Total operating expenses, $m
  8,695
  8,936
  9,187
  9,447
  9,717
  9,996
  10,286
  10,585
  10,893
  11,211
  10,209
  10,547
  10,895
  11,254
  11,624
  12,005
  12,397
  12,801
  13,217
  13,646
  14,089
  14,545
  15,016
  15,502
  16,004
  16,522
  17,057
  17,611
  18,183
  18,774
Operating income, $m
  6,362
  8,338
  10,462
  12,732
  15,142
  17,691
  20,375
  23,193
  26,143
  29,227
  33,773
  37,125
  40,614
  44,245
  48,022
  51,950
  56,035
  60,285
  64,708
  69,312
  74,107
  79,102
  84,310
  89,741
  95,408
  101,324
  107,503
  113,960
  120,710
  127,770
EBITDA, $m
  9,462
  11,698
  14,101
  16,668
  19,393
  22,274
  25,308
  28,492
  31,825
  35,308
  38,941
  42,727
  46,667
  50,766
  55,030
  59,464
  64,076
  68,873
  73,864
  79,059
  84,470
  90,106
  95,980
  102,107
  108,499
  115,171
  122,139
  129,420
  137,030
  144,989
Interest expense (income), $m
  527
  855
  787
  962
  1,149
  1,348
  1,559
  1,782
  2,016
  2,262
  2,519
  2,787
  3,066
  3,356
  3,659
  3,973
  4,300
  4,639
  4,992
  5,358
  5,739
  6,136
  6,548
  6,978
  7,425
  7,891
  8,377
  8,884
  9,413
  9,965
  10,542
Earnings before tax, $m
  5,507
  7,551
  9,500
  11,583
  13,794
  16,131
  18,593
  21,176
  23,882
  26,708
  30,987
  34,059
  37,258
  40,586
  44,049
  47,650
  51,396
  55,294
  59,350
  63,573
  67,971
  72,554
  77,332
  82,316
  87,517
  92,947
  98,619
  104,547
  110,745
  117,228
Tax expense, $m
  1,487
  2,039
  2,565
  3,127
  3,724
  4,355
  5,020
  5,718
  6,448
  7,211
  8,366
  9,196
  10,060
  10,958
  11,893
  12,866
  13,877
  14,929
  16,024
  17,165
  18,352
  19,590
  20,880
  22,225
  23,629
  25,096
  26,627
  28,228
  29,901
  31,652
Net income, $m
  4,020
  5,512
  6,935
  8,455
  10,069
  11,776
  13,573
  15,459
  17,434
  19,497
  22,620
  24,863
  27,198
  29,628
  32,156
  34,785
  37,519
  40,364
  43,325
  46,408
  49,619
  52,964
  56,452
  60,090
  63,887
  67,851
  71,992
  76,320
  80,844
  85,576

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
  24,404
  27,997
  31,846
  35,945
  40,289
  44,873
  49,693
  54,744
  60,026
  65,539
  71,284
  77,264
  83,484
  89,950
  96,670
  103,653
  110,910
  118,454
  126,296
  134,454
  142,942
  151,778
  160,981
  170,571
  180,569
  190,998
  201,881
  213,242
  225,110
  237,510
Adjusted assets (=assets-cash), $m
  24,404
  27,997
  31,846
  35,945
  40,289
  44,873
  49,693
  54,744
  60,026
  65,539
  71,284
  77,264
  83,484
  89,950
  96,670
  103,653
  110,910
  118,454
  126,296
  134,454
  142,942
  151,778
  160,981
  170,571
  180,569
  190,998
  201,881
  213,242
  225,110
  237,510
Revenue / Adjusted assets
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
  0.617
Average production assets, $m
  17,693
  20,297
  23,087
  26,059
  29,209
  32,532
  36,026
  39,688
  43,518
  47,514
  51,679
  56,015
  60,524
  65,212
  70,084
  75,146
  80,407
  85,876
  91,562
  97,476
  103,629
  110,035
  116,708
  123,660
  130,908
  138,469
  146,358
  154,595
  163,199
  172,189
Working capital, $m
  271
  311
  354
  399
  447
  498
  552
  608
  667
  728
  792
  858
  927
  999
  1,074
  1,151
  1,232
  1,316
  1,403
  1,493
  1,588
  1,686
  1,788
  1,894
  2,005
  2,121
  2,242
  2,368
  2,500
  2,638
Total debt, $m
  14,582
  17,815
  21,279
  24,969
  28,879
  33,004
  37,341
  41,888
  46,642
  51,603
  56,774
  62,156
  67,754
  73,573
  79,621
  85,906
  92,437
  99,226
  106,285
  113,626
  121,266
  129,218
  137,501
  146,132
  155,130
  164,516
  174,311
  184,536
  195,217
  206,377
Total liabilities, $m
  21,964
  25,197
  28,661
  32,351
  36,261
  40,386
  44,723
  49,270
  54,024
  58,985
  64,156
  69,538
  75,136
  80,955
  87,003
  93,288
  99,819
  106,608
  113,667
  121,008
  128,648
  136,600
  144,883
  153,514
  162,512
  171,898
  181,693
  191,918
  202,599
  213,759
Total equity, $m
  2,440
  2,800
  3,185
  3,595
  4,029
  4,487
  4,969
  5,474
  6,003
  6,554
  7,128
  7,726
  8,348
  8,995
  9,667
  10,365
  11,091
  11,845
  12,630
  13,445
  14,294
  15,178
  16,098
  17,057
  18,057
  19,100
  20,188
  21,324
  22,511
  23,751
Total liabilities and equity, $m
  24,404
  27,997
  31,846
  35,946
  40,290
  44,873
  49,692
  54,744
  60,027
  65,539
  71,284
  77,264
  83,484
  89,950
  96,670
  103,653
  110,910
  118,453
  126,297
  134,453
  142,942
  151,778
  160,981
  170,571
  180,569
  190,998
  201,881
  213,242
  225,110
  237,510
Debt-to-equity ratio
  5.980
  6.360
  6.680
  6.950
  7.170
  7.350
  7.510
  7.650
  7.770
  7.870
  7.960
  8.040
  8.120
  8.180
  8.240
  8.290
  8.330
  8.380
  8.420
  8.450
  8.480
  8.510
  8.540
  8.570
  8.590
  8.610
  8.630
  8.650
  8.670
  8.690
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
  4,020
  5,512
  6,935
  8,455
  10,069
  11,776
  13,573
  15,459
  17,434
  19,497
  22,620
  24,863
  27,198
  29,628
  32,156
  34,785
  37,519
  40,364
  43,325
  46,408
  49,619
  52,964
  56,452
  60,090
  63,887
  67,851
  71,992
  76,320
  80,844
  85,576
Depreciation, amort., depletion, $m
  3,099
  3,360
  3,639
  3,936
  4,251
  4,583
  4,933
  5,299
  5,682
  6,082
  5,168
  5,601
  6,052
  6,521
  7,008
  7,515
  8,041
  8,588
  9,156
  9,748
  10,363
  11,004
  11,671
  12,366
  13,091
  13,847
  14,636
  15,460
  16,320
  17,219
Funds from operations, $m
  7,120
  8,872
  10,574
  12,391
  14,321
  16,359
  18,505
  20,758
  23,115
  25,578
  27,788
  30,465
  33,251
  36,149
  39,164
  42,299
  45,560
  48,952
  52,481
  56,156
  59,982
  63,968
  68,123
  72,456
  76,978
  81,698
  86,628
  91,779
  97,164
  102,795
Change in working capital, $m
  37
  40
  43
  46
  48
  51
  54
  56
  59
  61
  64
  66
  69
  72
  75
  78
  81
  84
  87
  91
  94
  98
  102
  107
  111
  116
  121
  126
  132
  138
Cash from operations, $m
  7,083
  8,832
  10,532
  12,346
  14,272
  16,308
  18,452
  20,702
  23,057
  25,517
  27,725
  30,398
  33,182
  36,078
  39,089
  42,222
  45,479
  48,868
  52,394
  56,065
  59,887
  63,870
  68,021
  72,350
  76,867
  81,582
  86,507
  91,653
  97,032
  102,658
Maintenance CAPEX, $m
  -1,528
  -1,769
  -2,030
  -2,309
  -2,606
  -2,921
  -3,253
  -3,603
  -3,969
  -4,352
  -4,751
  -5,168
  -5,601
  -6,052
  -6,521
  -7,008
  -7,515
  -8,041
  -8,588
  -9,156
  -9,748
  -10,363
  -11,004
  -11,671
  -12,366
  -13,091
  -13,847
  -14,636
  -15,460
  -16,320
New CAPEX, $m
  -2,413
  -2,604
  -2,790
  -2,972
  -3,150
  -3,323
  -3,494
  -3,662
  -3,830
  -3,997
  -4,165
  -4,335
  -4,509
  -4,688
  -4,872
  -5,063
  -5,261
  -5,469
  -5,686
  -5,914
  -6,154
  -6,406
  -6,672
  -6,952
  -7,248
  -7,560
  -7,890
  -8,237
  -8,604
  -8,990
Cash from investing activities, $m
  -3,941
  -4,373
  -4,820
  -5,281
  -5,756
  -6,244
  -6,747
  -7,265
  -7,799
  -8,349
  -8,916
  -9,503
  -10,110
  -10,740
  -11,393
  -12,071
  -12,776
  -13,510
  -14,274
  -15,070
  -15,902
  -16,769
  -17,676
  -18,623
  -19,614
  -20,651
  -21,737
  -22,873
  -24,064
  -25,310
Free cash flow, $m
  3,142
  4,458
  5,711
  7,065
  8,517
  10,064
  11,705
  13,437
  15,258
  17,169
  18,808
  20,895
  23,071
  25,337
  27,696
  30,151
  32,704
  35,359
  38,121
  40,995
  43,986
  47,101
  50,345
  53,727
  57,253
  60,931
  64,771
  68,780
  72,969
  77,348
Issuance/(repayment) of debt, $m
  -1,256
  3,233
  3,464
  3,690
  3,910
  4,125
  4,337
  4,546
  4,754
  4,962
  5,170
  5,382
  5,598
  5,819
  6,048
  6,285
  6,531
  6,789
  7,059
  7,342
  7,639
  7,953
  8,283
  8,631
  8,998
  9,386
  9,794
  10,226
  10,681
  11,161
Issuance/(repurchase) of shares, $m
  554
  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  
  -702
  3,233
  3,464
  3,690
  3,910
  4,125
  4,337
  4,546
  4,754
  4,962
  5,170
  5,382
  5,598
  5,819
  6,048
  6,285
  6,531
  6,789
  7,059
  7,342
  7,639
  7,953
  8,283
  8,631
  8,998
  9,386
  9,794
  10,226
  10,681
  11,161
Total cash flow (excl. dividends), $m
  2,440
  7,692
  9,176
  10,755
  12,427
  14,190
  16,042
  17,983
  20,013
  22,130
  23,979
  26,277
  28,669
  31,157
  33,744
  36,436
  39,235
  42,148
  45,179
  48,336
  51,625
  55,053
  58,628
  62,358
  66,251
  70,317
  74,565
  79,006
  83,650
  88,508
Retained Cash Flow (-), $m
  -4,574
  -359
  -385
  -410
  -434
  -458
  -482
  -505
  -528
  -551
  -574
  -598
  -622
  -647
  -672
  -698
  -726
  -754
  -784
  -816
  -849
  -884
  -920
  -959
  -1,000
  -1,043
  -1,088
  -1,136
  -1,187
  -1,240
Prev. year cash balance distribution, $m
  9,055
  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
  676
  783
  898
  1,022
  1,153
  1,293
  1,440
  1,594
  1,756
  1,926
  2,103
  2,287
  2,479
  2,679
  2,886
  3,102
  3,326
  3,558
  3,800
  4,052
  4,314
  4,586
  4,870
  5,165
  5,473
  5,793
  6,128
  6,477
  6,842
  7,222
Cash available for distribution, $m
  6,921
  7,332
  8,791
  10,345
  11,992
  13,731
  15,560
  17,478
  19,484
  21,579
  23,404
  25,679
  28,047
  30,510
  33,072
  35,737
  38,509
  41,393
  44,395
  47,521
  50,777
  54,170
  57,708
  61,399
  65,251
  69,274
  73,477
  77,870
  82,463
  87,268
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
  6,636
  6,712
  7,650
  8,518
  9,295
  9,965
  10,512
  10,924
  11,193
  11,313
  11,114
  10,958
  10,664
  10,243
  9,709
  9,082
  8,379
  7,623
  6,836
  6,038
  5,252
  4,495
  3,782
  3,127
  2,538
  2,021
  1,577
  1,205
  900
  657
Current shareholders' claim on cash, %
  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 33.2
Price to Sales 5.9
Price to Book 10.1
Price to Tangible Book
Price to Cash Flow 16.7
Price to Free Cash Flow 17.7
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 $13003 million for the last fiscal year's total revenue generated by Celgene. The default revenue input number comes from 2017 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 15.8% 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 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 14.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $6592 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.

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 5.2%.

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 117.5%.

Life of production assets of 10 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 1.8%. 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 - $6921 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 779 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 $66.4 billion.

RELATED COMPANIES Price Int.Val. Rating
NVS Novartis ADR 78.59 59.65  sell
ABBV AbbVie 96.25 93.18  hold
AZN AstraZeneca AD 36.66 55.39  str.buy
EPZM Epizyme 13.75 0.96  str.sell
AMGN Amgen 194.88 91.73  sell
BLUE bluebird bio 177.30 9.05  str.sell
XLRN Acceleron Phar 45.96 2.28  str.sell
LLY Eli Lilly 89.07 51.30  sell

COMPANY NEWS

▶ The 3 Worst Healthcare Stocks of 2018 (So Far)   [Jul-19-18 08:46AM  Motley Fool]
▶ Are CEOs Really Worth What Theyre Paid?   [07:00AM  InvestorPlace]
▶ 3 Best Big Pharma Stocks to Buy for the 2nd Half of 2018   [Jul-15-18 06:32AM  Motley Fool]
▶ Nohla adds $11 million in funding and three new investors   [02:59PM  American City Business Journals]
▶ Top 5 Biotech Stocks for 2018   [Jul-11-18 07:05PM  Investopedia]
▶ Dow, S&P 500 Gain For Fourth Day; Nasdaq Ends Flat   [Jul-10-18 04:06PM  TheStreet.com]
▶ 4 Biotechs on Verge of Big Breakouts   [06:00AM  Investopedia]
▶ Is health care the ultimate hideout trade?   [Jul-06-18 05:29PM  CNBC Videos]
▶ Celgene Is Turning Up as Bulls Gain Control   [11:17AM  TheStreet.com]
▶ Corrections & Amplifications   [Jul-05-18 08:42PM  The Wall Street Journal]
▶ Drug pricing debate could heat up in July   [02:40PM  CNBC Videos]
▶ [$$] Why July Is a Risky Month for Drug Price Backlash   [Jul-04-18 08:00PM  The Wall Street Journal]
▶ 3 Reasons BeiGene Needs to Be on Your Radar   [Jul-03-18 10:45PM  Motley Fool]
▶ Pharma's 2 Biggest Setbacks in 2018   [Jul-01-18 08:00AM  Motley Fool]
▶ 3 Biotech Stocks That Soared This Week: Are They Buys?   [Jun-30-18 07:17AM  Motley Fool]
▶ Acceleron Pharma Soars On Celgene-Partnered Anemia Treatment   [Jun-29-18 05:00PM  Investor's Business Daily]
▶ Ron Squarer's risk-taking pays off at Array   [08:30AM  American City Business Journals]
▶ 8 Stocks Poised To Lead In An Uncertain Market   [Jun-27-18 01:30PM  Investopedia]
▶ Enbridge, Celgene, Intuitive Surgical & Financials   [Jun-26-18 03:37PM  CNBC Videos]
▶ 20 Massively Underpriced Stocks Wall Street Expects to Soar   [Jun-25-18 03:36PM  InvestorPlace]
▶ Celgene Price Weakness in Rear-View Mirror   [10:46AM  TheStreet.com]
▶ Celgene sues pharma with Durham ops   [Jun-22-18 03:06PM  American City Business Journals]
▶ 5 Top Stock Trades for Wednesday Morning   [04:02PM  InvestorPlace]
▶ CVS will offer home delivery of prescriptions   [01:25PM  Yahoo Finance Video]
▶ Better Buy: Celgene Corporation vs. Merck   [08:16AM  Motley Fool]
▶ 3 Top Biotech Stocks to Buy Right Now   [Jun-18-18 11:45AM  Motley Fool]
▶ MARKETS: Here's why stocks are dropping right now   [10:26AM  Yahoo Finance Video]
▶ Should You Buy Celgene Stock?   [09:46AM  Motley Fool]
▶ [$$] Celgene admits self-inflicted error over MS drug   [Jun-13-18 12:00AM  Financial Times]
▶ Ex-Juno leader becomes CEO of Alder BioPharmaceuticals ahead of migraine drug launch   [Jun-11-18 06:01PM  American City Business Journals]
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.