Intrinsic value of Eleven Biotherapeutics - EBIO

Previous Close

$3.29

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$3.29

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

We calculate the intrinsic value of EBIO 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 2016), $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 0.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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, %
  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
  48
  74
  111
  161
  227
  312
  419
  550
  708
  894
  1,110
  1,357
  1,636
  1,947
  2,289
  2,663
  3,067
  3,502
  3,966
  4,459
  4,980
  5,529
  6,105
  6,707
  7,337
  7,993
  8,677
  9,389
  10,128
  10,897
Variable operating expenses, $m
  1,750
  2,700
  4,034
  5,849
  8,249
  11,337
  15,216
  19,977
  25,703
  32,463
  40,302
  49,273
  59,390
  70,662
  83,086
  96,649
  111,332
  127,111
  143,959
  161,853
  180,768
  200,685
  221,589
  243,470
  266,325
  290,157
  314,976
  340,799
  367,648
  395,555
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
  1,750
  2,700
  4,034
  5,849
  8,249
  11,337
  15,216
  19,977
  25,703
  32,463
  40,302
  49,273
  59,390
  70,662
  83,086
  96,649
  111,332
  127,111
  143,959
  161,853
  180,768
  200,685
  221,589
  243,470
  266,325
  290,157
  314,976
  340,799
  367,648
  395,555
Operating income, $m
  -1,702
  -2,625
  -3,923
  -5,688
  -8,022
  -11,025
  -14,797
  -19,426
  -24,995
  -31,569
  -39,191
  -47,915
  -57,754
  -68,716
  -80,798
  -93,987
  -108,265
  -123,609
  -139,993
  -157,394
  -175,788
  -195,157
  -215,485
  -236,763
  -258,989
  -282,164
  -306,299
  -331,410
  -357,520
  -384,658
EBITDA, $m
  -1,688
  -2,608
  -3,900
  -5,659
  -7,984
  -10,977
  -14,734
  -19,347
  -24,894
  -31,444
  -39,046
  -47,737
  -57,540
  -68,461
  -80,498
  -93,638
  -107,863
  -123,150
  -139,474
  -156,810
  -175,136
  -194,433
  -214,685
  -235,885
  -258,027
  -281,117
  -305,162
  -330,180
  -356,193
  -383,230
Interest expense (income), $m
  1
  0
  2
  5
  10
  15
  23
  33
  46
  61
  80
  102
  127
  157
  190
  226
  267
  311
  358
  410
  464
  523
  584
  649
  717
  788
  862
  940
  1,020
  1,104
  1,192
Earnings before tax, $m
  -1,702
  -2,628
  -3,928
  -5,698
  -8,037
  -11,049
  -14,830
  -19,472
  -25,056
  -31,649
  -39,293
  -48,043
  -57,911
  -68,905
  -81,024
  -94,253
  -108,576
  -123,967
  -140,403
  -157,859
  -176,311
  -195,741
  -216,134
  -237,480
  -259,776
  -283,026
  -307,239
  -332,431
  -358,624
  -385,849
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -1,702
  -2,628
  -3,928
  -5,698
  -8,037
  -11,049
  -14,830
  -19,472
  -25,056
  -31,649
  -39,293
  -48,043
  -57,911
  -68,905
  -81,024
  -94,253
  -108,576
  -123,967
  -140,403
  -157,859
  -176,311
  -195,741
  -216,134
  -237,480
  -259,776
  -283,026
  -307,239
  -332,431
  -358,624
  -385,849

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
  133
  205
  306
  445
  627
  862
  1,157
  1,520
  1,955
  2,470
  3,067
  3,750
  4,520
  5,378
  6,323
  7,355
  8,473
  9,673
  10,956
  12,317
  13,757
  15,272
  16,863
  18,528
  20,268
  22,081
  23,970
  25,935
  27,979
  30,102
Adjusted assets (=assets-cash), $m
  133
  205
  306
  445
  627
  862
  1,157
  1,520
  1,955
  2,470
  3,067
  3,750
  4,520
  5,378
  6,323
  7,355
  8,473
  9,673
  10,956
  12,317
  13,757
  15,272
  16,863
  18,528
  20,268
  22,081
  23,970
  25,935
  27,979
  30,102
Revenue / Adjusted assets
  0.361
  0.361
  0.363
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
  0.362
Average production assets, $m
  63
  97
  145
  211
  297
  409
  549
  721
  927
  1,171
  1,454
  1,778
  2,143
  2,550
  2,998
  3,488
  4,018
  4,587
  5,195
  5,841
  6,524
  7,243
  7,997
  8,787
  9,611
  10,471
  11,367
  12,299
  13,268
  14,275
Working capital, $m
  -3
  -4
  -7
  -9
  -13
  -18
  -25
  -32
  -42
  -53
  -66
  -80
  -97
  -115
  -135
  -157
  -181
  -207
  -234
  -263
  -294
  -326
  -360
  -396
  -433
  -472
  -512
  -554
  -598
  -643
Total debt, $m
  40
  97
  177
  287
  431
  617
  850
  1,137
  1,482
  1,889
  2,361
  2,901
  3,510
  4,189
  4,936
  5,753
  6,637
  7,586
  8,601
  9,678
  10,816
  12,015
  13,274
  14,591
  15,967
  17,401
  18,895
  20,450
  22,066
  23,746
Total liabilities, $m
  105
  162
  242
  352
  496
  682
  915
  1,202
  1,547
  1,954
  2,426
  2,966
  3,575
  4,254
  5,001
  5,818
  6,702
  7,652
  8,666
  9,743
  10,882
  12,081
  13,339
  14,656
  16,032
  17,466
  18,960
  20,515
  22,131
  23,811
Total equity, $m
  28
  43
  64
  93
  131
  180
  242
  318
  409
  516
  641
  784
  945
  1,124
  1,322
  1,537
  1,771
  2,022
  2,290
  2,574
  2,875
  3,192
  3,524
  3,872
  4,236
  4,615
  5,010
  5,420
  5,848
  6,291
Total liabilities and equity, $m
  133
  205
  306
  445
  627
  862
  1,157
  1,520
  1,956
  2,470
  3,067
  3,750
  4,520
  5,378
  6,323
  7,355
  8,473
  9,674
  10,956
  12,317
  13,757
  15,273
  16,863
  18,528
  20,268
  22,081
  23,970
  25,935
  27,979
  30,102
Debt-to-equity ratio
  1.440
  2.260
  2.770
  3.080
  3.290
  3.420
  3.520
  3.580
  3.630
  3.660
  3.680
  3.700
  3.720
  3.730
  3.740
  3.740
  3.750
  3.750
  3.760
  3.760
  3.760
  3.760
  3.770
  3.770
  3.770
  3.770
  3.770
  3.770
  3.770
  3.770
Adjusted equity ratio
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -1,702
  -2,628
  -3,928
  -5,698
  -8,037
  -11,049
  -14,830
  -19,472
  -25,056
  -31,649
  -39,293
  -48,043
  -57,911
  -68,905
  -81,024
  -94,253
  -108,576
  -123,967
  -140,403
  -157,859
  -176,311
  -195,741
  -216,134
  -237,480
  -259,776
  -283,026
  -307,239
  -332,431
  -358,624
  -385,849
Depreciation, amort., depletion, $m
  14
  17
  22
  29
  37
  49
  63
  80
  100
  125
  145
  178
  214
  255
  300
  349
  402
  459
  520
  584
  652
  724
  800
  879
  961
  1,047
  1,137
  1,230
  1,327
  1,428
Funds from operations, $m
  -1,688
  -2,610
  -3,906
  -5,669
  -8,000
  -11,000
  -14,767
  -19,393
  -24,956
  -31,524
  -39,148
  -47,865
  -57,696
  -68,650
  -80,724
  -93,905
  -108,174
  -123,509
  -139,884
  -157,275
  -175,659
  -195,017
  -215,334
  -236,601
  -258,815
  -281,979
  -306,102
  -331,201
  -357,298
  -384,422
Change in working capital, $m
  -1
  -2
  -2
  -3
  -4
  -5
  -6
  -8
  -9
  -11
  -13
  -15
  -16
  -18
  -20
  -22
  -24
  -26
  -27
  -29
  -31
  -32
  -34
  -36
  -37
  -39
  -40
  -42
  -44
  -45
Cash from operations, $m
  -1,687
  -2,609
  -3,903
  -5,666
  -7,996
  -10,995
  -14,761
  -19,385
  -24,947
  -31,513
  -39,135
  -47,850
  -57,680
  -68,632
  -80,704
  -93,883
  -108,150
  -123,483
  -139,856
  -157,245
  -175,628
  -194,984
  -215,300
  -236,566
  -258,778
  -281,940
  -306,062
  -331,159
  -357,254
  -384,377
Maintenance CAPEX, $m
  -4
  -6
  -10
  -15
  -21
  -30
  -41
  -55
  -72
  -93
  -117
  -145
  -178
  -214
  -255
  -300
  -349
  -402
  -459
  -520
  -584
  -652
  -724
  -800
  -879
  -961
  -1,047
  -1,137
  -1,230
  -1,327
New CAPEX, $m
  -24
  -34
  -48
  -66
  -87
  -111
  -140
  -172
  -207
  -244
  -283
  -324
  -365
  -407
  -448
  -489
  -530
  -569
  -608
  -646
  -683
  -719
  -754
  -790
  -825
  -860
  -896
  -932
  -969
  -1,007
Cash from investing activities, $m
  -28
  -40
  -58
  -81
  -108
  -141
  -181
  -227
  -279
  -337
  -400
  -469
  -543
  -621
  -703
  -789
  -879
  -971
  -1,067
  -1,166
  -1,267
  -1,371
  -1,478
  -1,590
  -1,704
  -1,821
  -1,943
  -2,069
  -2,199
  -2,334
Free cash flow, $m
  -1,715
  -2,649
  -3,961
  -5,746
  -8,104
  -11,136
  -14,942
  -19,612
  -25,225
  -31,849
  -39,535
  -48,319
  -58,223
  -69,253
  -81,407
  -94,672
  -109,029
  -124,454
  -140,923
  -158,411
  -176,895
  -196,355
  -216,779
  -238,155
  -260,482
  -283,761
  -308,005
  -333,227
  -359,453
  -386,711
Issuance/(repayment) of debt, $m
  40
  57
  80
  109
  144
  186
  233
  287
  345
  407
  472
  540
  609
  679
  748
  816
  884
  950
  1,014
  1,077
  1,139
  1,199
  1,258
  1,317
  1,376
  1,435
  1,494
  1,554
  1,616
  1,680
Issuance/(repurchase) of shares, $m
  1,712
  2,643
  3,949
  5,726
  8,075
  11,098
  14,892
  19,548
  25,147
  31,756
  39,418
  48,185
  58,071
  69,085
  81,221
  94,469
  108,809
  124,218
  140,671
  158,143
  176,612
  196,058
  216,466
  237,828
  260,140
  283,405
  307,634
  332,841
  359,051
  386,293
Cash from financing (excl. dividends), $m  
  1,752
  2,700
  4,029
  5,835
  8,219
  11,284
  15,125
  19,835
  25,492
  32,163
  39,890
  48,725
  58,680
  69,764
  81,969
  95,285
  109,693
  125,168
  141,685
  159,220
  177,751
  197,257
  217,724
  239,145
  261,516
  284,840
  309,128
  334,395
  360,667
  387,973
Total cash flow (excl. dividends), $m
  38
  51
  68
  90
  116
  147
  183
  223
  267
  314
  355
  406
  458
  510
  562
  614
  664
  714
  762
  810
  856
  901
  946
  990
  1,034
  1,078
  1,123
  1,168
  1,215
  1,263
Retained Cash Flow (-), $m
  -1,712
  -2,643
  -3,949
  -5,726
  -8,075
  -11,098
  -14,892
  -19,548
  -25,147
  -31,756
  -39,418
  -48,185
  -58,071
  -69,085
  -81,221
  -94,469
  -108,809
  -124,218
  -140,671
  -158,143
  -176,612
  -196,058
  -216,466
  -237,828
  -260,140
  -283,405
  -307,634
  -332,841
  -359,051
  -386,293
Prev. year cash balance distribution, $m
  21
  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
  4
  6
  10
  15
  22
  30
  42
  56
  74
  95
  120
  149
  182
  219
  261
  307
  357
  411
  469
  531
  597
  667
  741
  818
  899
  983
  1,071
  1,163
  1,258
  1,357
Cash available for distribution, $m
  -1,653
  -2,592
  -3,881
  -5,637
  -7,959
  -10,950
  -14,708
  -19,325
  -24,881
  -31,442
  -39,063
  -47,779
  -57,614
  -68,575
  -80,659
  -93,856
  -108,145
  -123,504
  -139,909
  -157,334
  -175,756
  -195,157
  -215,520
  -236,838
  -259,106
  -282,327
  -306,511
  -331,673
  -357,837
  -385,031
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
  -1,585
  -2,373
  -3,378
  -4,641
  -6,169
  -7,947
  -9,937
  -12,079
  -14,293
  -16,484
  -18,550
  -20,389
  -21,906
  -23,022
  -23,680
  -23,851
  -23,531
  -22,745
  -21,542
  -19,992
  -18,179
  -16,193
  -14,125
  -12,063
  -10,080
  -8,237
  -6,579
  -5,131
  -3,906
  -2,899
Current shareholders' claim on cash, %
  1.8
  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
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Eleven Biotherapeutics, Inc. is a preclinical-stage biopharmaceutical company. The Company applies its AMP-Rx platform to the discovery and development of protein therapeutics to treat diseases of the eye. The Company's product candidate, which is still in preclinical development, is EBI-031, which was designed, engineered and generated using its AMP-Rx platform and are developing as an intravitreal injection for diabetic macular edema (DME) and uveitis. The Company's therapeutic approach is based on the role of cytokines in diseases of the eye, its understanding of the structural biology of cytokines and its ability to design and engineer proteins to modulate the effects of cytokines. The Company is developing EBI-031 as an intravitreal injection for DME and uveitis. In addition to EBI-031, the Company has another product candidate in early preclinical development, which is designed to block vascular endothelial growth factor (VEGF).

FINANCIAL RATIOS  of  Eleven Biotherapeutics (EBIO)

Valuation Ratios
P/E Ratio 40.4
Price to Sales 2.7
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow 26.9
Price to Free Cash Flow 26.9
Growth Rates
Sales Growth Rate 2900%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 3
Management Effectiveness
Return On Assets 4.3%
Ret/ On Assets - 3 Yr. Avg. -56.1%
Return On Total Capital 5.6%
Ret/ On T. Cap. - 3 Yr. Avg. -67.6%
Return On Equity 6.9%
Return On Equity - 3 Yr. Avg. -95.1%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 10%
EBITDA Margin - 3 Yr. Avg. -1630%
Operating Margin 10%
Oper. Margin - 3 Yr. Avg. -1713.3%
Pre-Tax Margin 6.7%
Pre-Tax Margin - 3 Yr. Avg. -1664.4%
Net Profit Margin 6.7%
Net Profit Margin - 3 Yr. Avg. -1664.4%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

EBIO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the EBIO stock intrinsic value calculation we used $30 million for the last fiscal year's total revenue generated by Eleven Biotherapeutics. The default revenue input number comes from 2016 income statement of Eleven Biotherapeutics. 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 EBIO 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 4.3%, whose default value for EBIO is calculated based on our internal credit rating of Eleven Biotherapeutics, 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 Eleven Biotherapeutics.
    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 EBIO stock the variable cost ratio is equal to 3655.6%.

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 EBIO 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 Eleven Biotherapeutics.

Corporate tax rate of 27% is the nominal tax rate for Eleven Biotherapeutics. 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 EBIO stock is equal to 13.4%.

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 EBIO are equal to 131%.

Life of production assets of 10 years is the average useful life of capital assets used in Eleven Biotherapeutics 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 EBIO is equal to -5.9%. 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 - $39 million for Eleven Biotherapeutics - 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 21 million for Eleven Biotherapeutics 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 Eleven Biotherapeutics at the current share price and the inputted number of shares is $0.1 billion.

RELATED COMPANIES Price Int.Val. Rating
SRNE Sorrento Thera 5.30 0.33  str.sell
XON Intrexon 14.20 0.31  str.sell
IDRA Idera Pharmace 9.27 0.47  str.sell
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.