Intrinsic value of Clovis Oncology, Inc. - CLVS

Previous Close

$27.48

  Intrinsic Value

$0.57

stock screener

  Rating & Target

str. sell

-98%

Previous close

$27.48

 
Intrinsic value

$0.57

 
Up/down potential

-98%

 
Rating

str. sell

We calculate the intrinsic value of CLVS 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 1.5

 

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, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  152
  235
  351
  510
  719
  988
  1,327
  1,742
  2,242
  2,831
  3,516
  4,298
  5,181
  6,164
  7,248
  8,431
  9,712
  11,089
  12,559
  14,120
  15,770
  17,507
  19,331
  21,240
  23,234
  25,313
  27,478
  29,730
  32,073
  34,507
Variable operating expenses, $m
  522
  804
  1,202
  1,742
  2,457
  3,377
  4,531
  5,949
  7,654
  9,668
  12,002
  14,673
  17,686
  21,043
  24,743
  28,781
  33,154
  37,853
  42,870
  48,199
  53,831
  59,763
  65,988
  72,504
  79,310
  86,407
  93,798
  101,487
  109,483
  117,793
Fixed operating expenses, $m
  106
  109
  111
  113
  116
  119
  121
  124
  127
  129
  132
  135
  138
  141
  144
  147
  151
  154
  157
  161
  164
  168
  172
  175
  179
  183
  187
  191
  195
  200
Total operating expenses, $m
  628
  913
  1,313
  1,855
  2,573
  3,496
  4,652
  6,073
  7,781
  9,797
  12,134
  14,808
  17,824
  21,184
  24,887
  28,928
  33,305
  38,007
  43,027
  48,360
  53,995
  59,931
  66,160
  72,679
  79,489
  86,590
  93,985
  101,678
  109,678
  117,993
Operating income, $m
  -476
  -678
  -961
  -1,346
  -1,854
  -2,507
  -3,326
  -4,331
  -5,539
  -6,966
  -8,618
  -10,510
  -12,643
  -15,019
  -17,638
  -20,497
  -23,592
  -26,918
  -30,469
  -34,240
  -38,226
  -42,423
  -46,828
  -51,439
  -56,255
  -61,277
  -66,507
  -71,948
  -77,606
  -83,486
EBITDA, $m
  -469
  -669
  -949
  -1,329
  -1,831
  -2,477
  -3,287
  -4,281
  -5,475
  -6,885
  -8,521
  -10,392
  -12,501
  -14,850
  -17,440
  -20,266
  -23,326
  -26,613
  -30,124
  -33,852
  -37,793
  -41,943
  -46,298
  -50,856
  -55,618
  -60,583
  -65,753
  -71,132
  -76,726
  -82,539
Interest expense (income), $m
  7
  31
  29
  49
  77
  115
  165
  230
  312
  411
  532
  674
  838
  1,027
  1,239
  1,475
  1,736
  2,021
  2,329
  2,660
  3,014
  3,389
  3,786
  4,205
  4,643
  5,103
  5,582
  6,082
  6,603
  7,145
  7,709
Earnings before tax, $m
  -507
  -707
  -1,010
  -1,423
  -1,969
  -2,672
  -3,556
  -4,643
  -5,951
  -7,497
  -9,291
  -11,348
  -13,669
  -16,258
  -19,114
  -22,234
  -25,613
  -29,247
  -33,129
  -37,254
  -41,615
  -46,210
  -51,033
  -56,082
  -61,358
  -66,859
  -72,589
  -78,551
  -84,751
  -91,195
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
  -507
  -707
  -1,010
  -1,423
  -1,969
  -2,672
  -3,556
  -4,643
  -5,951
  -7,497
  -9,291
  -11,348
  -13,669
  -16,258
  -19,114
  -22,234
  -25,613
  -29,247
  -33,129
  -37,254
  -41,615
  -46,210
  -51,033
  -56,082
  -61,358
  -66,859
  -72,589
  -78,551
  -84,751
  -91,195

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
  752
  1,163
  1,739
  2,523
  3,559
  4,893
  6,568
  8,624
  11,097
  14,016
  17,405
  21,279
  25,649
  30,517
  35,882
  41,740
  48,081
  54,895
  62,172
  69,899
  78,068
  86,670
  95,698
  105,147
  115,018
  125,310
  136,029
  147,181
  158,776
  170,828
Adjusted assets (=assets-cash), $m
  752
  1,163
  1,739
  2,523
  3,559
  4,893
  6,568
  8,624
  11,097
  14,016
  17,405
  21,279
  25,649
  30,517
  35,882
  41,740
  48,081
  54,895
  62,172
  69,899
  78,068
  86,670
  95,698
  105,147
  115,018
  125,310
  136,029
  147,181
  158,776
  170,828
Revenue / Adjusted assets
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
  0.202
Average production assets, $m
  104
  161
  241
  350
  493
  678
  910
  1,195
  1,538
  1,942
  2,412
  2,949
  3,554
  4,229
  4,972
  5,784
  6,663
  7,607
  8,615
  9,686
  10,818
  12,010
  13,261
  14,570
  15,938
  17,364
  18,850
  20,395
  22,002
  23,672
Working capital, $m
  -118
  -182
  -272
  -395
  -557
  -766
  -1,028
  -1,350
  -1,737
  -2,194
  -2,725
  -3,331
  -4,015
  -4,777
  -5,617
  -6,534
  -7,527
  -8,594
  -9,733
  -10,943
  -12,222
  -13,568
  -14,981
  -16,461
  -18,006
  -19,617
  -21,295
  -23,041
  -24,856
  -26,743
Total debt, $m
  536
  905
  1,423
  2,129
  3,062
  4,262
  5,769
  7,620
  9,846
  12,473
  15,523
  19,010
  22,942
  27,324
  32,153
  37,424
  43,131
  49,264
  55,813
  62,768
  70,120
  77,861
  85,986
  94,491
  103,374
  112,637
  122,284
  132,321
  142,757
  153,604
Total liabilities, $m
  677
  1,046
  1,565
  2,270
  3,203
  4,404
  5,911
  7,762
  9,987
  12,615
  15,665
  19,151
  23,084
  27,465
  32,294
  37,566
  43,273
  49,406
  55,954
  62,909
  70,261
  78,003
  86,128
  94,633
  103,516
  112,779
  122,426
  132,462
  142,898
  153,745
Total equity, $m
  75
  116
  174
  252
  356
  489
  657
  862
  1,110
  1,402
  1,741
  2,128
  2,565
  3,052
  3,588
  4,174
  4,808
  5,490
  6,217
  6,990
  7,807
  8,667
  9,570
  10,515
  11,502
  12,531
  13,603
  14,718
  15,878
  17,083
Total liabilities and equity, $m
  752
  1,162
  1,739
  2,522
  3,559
  4,893
  6,568
  8,624
  11,097
  14,017
  17,406
  21,279
  25,649
  30,517
  35,882
  41,740
  48,081
  54,896
  62,171
  69,899
  78,068
  86,670
  95,698
  105,148
  115,018
  125,310
  136,029
  147,180
  158,776
  170,828
Debt-to-equity ratio
  7.120
  7.780
  8.190
  8.440
  8.600
  8.710
  8.780
  8.840
  8.870
  8.900
  8.920
  8.930
  8.940
  8.950
  8.960
  8.970
  8.970
  8.970
  8.980
  8.980
  8.980
  8.980
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
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
  -507
  -707
  -1,010
  -1,423
  -1,969
  -2,672
  -3,556
  -4,643
  -5,951
  -7,497
  -9,291
  -11,348
  -13,669
  -16,258
  -19,114
  -22,234
  -25,613
  -29,247
  -33,129
  -37,254
  -41,615
  -46,210
  -51,033
  -56,082
  -61,358
  -66,859
  -72,589
  -78,551
  -84,751
  -91,195
Depreciation, amort., depletion, $m
  7
  9
  12
  17
  22
  30
  39
  51
  64
  80
  96
  118
  142
  169
  199
  231
  267
  304
  345
  387
  433
  480
  530
  583
  638
  695
  754
  816
  880
  947
Funds from operations, $m
  -500
  -698
  -998
  -1,406
  -1,946
  -2,642
  -3,517
  -4,592
  -5,887
  -7,417
  -9,195
  -11,230
  -13,527
  -16,089
  -18,915
  -22,002
  -25,346
  -28,942
  -32,784
  -36,866
  -41,183
  -45,729
  -50,502
  -55,500
  -60,720
  -66,165
  -71,835
  -77,736
  -83,871
  -90,248
Change in working capital, $m
  -44
  -64
  -90
  -123
  -162
  -209
  -262
  -322
  -387
  -457
  -531
  -607
  -684
  -762
  -840
  -917
  -993
  -1,067
  -1,139
  -1,210
  -1,279
  -1,347
  -1,413
  -1,479
  -1,545
  -1,611
  -1,678
  -1,746
  -1,815
  -1,887
Cash from operations, $m
  -456
  -634
  -908
  -1,283
  -1,784
  -2,433
  -3,255
  -4,270
  -5,500
  -6,960
  -8,664
  -10,623
  -12,843
  -15,327
  -18,075
  -21,085
  -24,354
  -27,876
  -31,645
  -35,656
  -39,904
  -44,383
  -49,089
  -54,020
  -59,175
  -64,554
  -70,157
  -75,990
  -82,056
  -88,361
Maintenance CAPEX, $m
  -3
  -4
  -6
  -10
  -14
  -20
  -27
  -36
  -48
  -62
  -78
  -96
  -118
  -142
  -169
  -199
  -231
  -267
  -304
  -345
  -387
  -433
  -480
  -530
  -583
  -638
  -695
  -754
  -816
  -880
New CAPEX, $m
  -39
  -57
  -80
  -109
  -144
  -185
  -232
  -285
  -343
  -405
  -470
  -537
  -605
  -675
  -744
  -812
  -879
  -944
  -1,008
  -1,071
  -1,132
  -1,192
  -1,251
  -1,309
  -1,368
  -1,426
  -1,485
  -1,545
  -1,607
  -1,670
Cash from investing activities, $m
  -42
  -61
  -86
  -119
  -158
  -205
  -259
  -321
  -391
  -467
  -548
  -633
  -723
  -817
  -913
  -1,011
  -1,110
  -1,211
  -1,312
  -1,416
  -1,519
  -1,625
  -1,731
  -1,839
  -1,951
  -2,064
  -2,180
  -2,299
  -2,423
  -2,550
Free cash flow, $m
  -498
  -695
  -994
  -1,402
  -1,942
  -2,638
  -3,514
  -4,591
  -5,890
  -7,426
  -9,212
  -11,257
  -13,567
  -16,144
  -18,988
  -22,096
  -25,464
  -29,086
  -32,958
  -37,072
  -41,423
  -46,007
  -50,820
  -55,860
  -61,126
  -66,617
  -72,337
  -78,289
  -84,478
  -90,911
Issuance/(repayment) of debt, $m
  -40
  369
  518
  706
  933
  1,200
  1,507
  1,851
  2,226
  2,627
  3,050
  3,487
  3,932
  4,381
  4,829
  5,272
  5,707
  6,133
  6,549
  6,955
  7,352
  7,741
  8,125
  8,505
  8,883
  9,263
  9,647
  10,037
  10,436
  10,847
Issuance/(repurchase) of shares, $m
  830
  748
  1,068
  1,501
  2,072
  2,805
  3,724
  4,848
  6,198
  7,789
  9,630
  11,735
  14,106
  16,745
  19,650
  22,819
  26,247
  29,928
  33,856
  38,026
  42,432
  47,070
  51,936
  57,027
  62,345
  67,889
  73,661
  79,667
  85,910
  92,400
Cash from financing (excl. dividends), $m  
  790
  1,117
  1,586
  2,207
  3,005
  4,005
  5,231
  6,699
  8,424
  10,416
  12,680
  15,222
  18,038
  21,126
  24,479
  28,091
  31,954
  36,061
  40,405
  44,981
  49,784
  54,811
  60,061
  65,532
  71,228
  77,152
  83,308
  89,704
  96,346
  103,247
Total cash flow (excl. dividends), $m
  293
  422
  592
  805
  1,064
  1,368
  1,717
  2,107
  2,534
  2,991
  3,468
  3,965
  4,472
  4,983
  5,492
  5,995
  6,490
  6,975
  7,448
  7,910
  8,361
  8,804
  9,240
  9,672
  10,103
  10,534
  10,971
  11,414
  11,868
  12,335
Retained Cash Flow (-), $m
  -830
  -748
  -1,068
  -1,501
  -2,072
  -2,805
  -3,724
  -4,848
  -6,198
  -7,789
  -9,630
  -11,735
  -14,106
  -16,745
  -19,650
  -22,819
  -26,247
  -29,928
  -33,856
  -38,026
  -42,432
  -47,070
  -51,936
  -57,027
  -62,345
  -67,889
  -73,661
  -79,667
  -85,910
  -92,400
Prev. year cash balance distribution, $m
  394
  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
  -143
  -326
  -476
  -696
  -1,009
  -1,438
  -2,007
  -2,741
  -3,664
  -4,798
  -6,162
  -7,770
  -9,634
  -11,762
  -14,159
  -16,824
  -19,757
  -22,954
  -26,409
  -30,117
  -34,071
  -38,266
  -42,695
  -47,355
  -52,242
  -57,354
  -62,691
  -68,252
  -74,042
  -80,064
Discount rate, %
  6.10
  6.41
  6.73
  7.06
  7.41
  7.79
  8.17
  8.58
  9.01
  9.46
  9.94
  10.43
  10.95
  11.50
  12.08
  12.68
  13.32
  13.98
  14.68
  15.41
  16.19
  16.99
  17.84
  18.74
  19.67
  20.66
  21.69
  22.77
  23.91
  25.11
PV of cash for distribution, $m
  -135
  -288
  -391
  -530
  -706
  -917
  -1,158
  -1,418
  -1,685
  -1,943
  -2,173
  -2,362
  -2,494
  -2,562
  -2,560
  -2,491
  -2,359
  -2,177
  -1,956
  -1,712
  -1,460
  -1,211
  -978
  -768
  -586
  -435
  -313
  -218
  -148
  -97
Current shareholders' claim on cash, %
  50.0
  25.0
  13.0
  6.9
  3.8
  2.1
  1.2
  0.7
  0.4
  0.2
  0.1
  0.1
  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
  0.0
  0.0
  0.0

Clovis Oncology, Inc. is a biopharmaceutical company focused on acquiring, developing and commercializing anti-cancer agents in the United States, Europe and other international markets. The Company's product candidates include Rociletinib, Rubraca (Rucaparib) and Lucitanib. Rucaparib is an oral, small molecule poly adenosine diphosphate (ADP)-ribose polymerase (PARP) inhibitor of PARP1, PARP2 and PARP3 approved as a monotherapy for the treatment of patients with deleterious breast cancer (BRCA) (human genes associated with the repair of damaged deoxyribonucleic acid (DNA)) mutation (germline and/or somatic) associated advanced ovarian cancer. Lucitanib is an oral inhibitor of the tyrosine kinase activity of vascular endothelial growth factor receptors (VEGFR) 1-3, platelet-derived growth factor receptors (PDGFR) alpha and beta and fibroblast growth factor receptors (FGFR) 1-3. Rociletinib is an oral mutant-selective inhibitor of epidermal growth factor receptor (EGFR).

FINANCIAL RATIOS  of  Clovis Oncology, Inc. (CLVS)

Valuation Ratios
P/E Ratio -3
Price to Sales 0
Price to Book -266
Price to Tangible Book
Price to Cash Flow -4
Price to Free Cash Flow -4
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -66.7%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity -7025%
Total Debt to Equity -7025%
Interest Coverage -53
Management Effectiveness
Return On Assets -63.6%
Ret/ On Assets - 3 Yr. Avg. -44.2%
Return On Total Capital -81.4%
Ret/ On T. Cap. - 3 Yr. Avg. -56.5%
Return On Equity -235%
Return On Equity - 3 Yr. Avg. -128.4%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. -366.7%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. -376.2%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. -376.2%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. -381%
Effective Tax Rate 8.4%
Eff/ Tax Rate - 3 Yr. Avg. 4.9%
Payout Ratio 0%

CLVS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CLVS stock intrinsic value calculation we used $95 million for the last fiscal year's total revenue generated by Clovis Oncology, Inc.. The default revenue input number comes from 0001 income statement of Clovis Oncology, Inc.. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CLVS stock valuation model: a) initial revenue growth rate of 60% 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 6.1%, whose default value for CLVS is calculated based on our internal credit rating of Clovis Oncology, Inc., is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Clovis Oncology, Inc..
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CLVS stock the variable cost ratio is equal to 344.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $104 million in the base year in the intrinsic value calculation for CLVS 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 Clovis Oncology, Inc..

Corporate tax rate of 27% is the nominal tax rate for Clovis Oncology, Inc.. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CLVS 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 CLVS are equal to 68.6%.

Life of production assets of 25 years is the average useful life of capital assets used in Clovis Oncology, Inc. operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CLVS is equal to -77.5%. 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 - $146.469 million for Clovis Oncology, Inc. - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 52.843 million for Clovis Oncology, Inc. is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Clovis Oncology, Inc. at the current share price and the inputted number of shares is $1.5 billion.

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