Intrinsic value of Heron Therapeutics - HRTX

Previous Close

$28.35

  Intrinsic Value

$0.89

stock screener

  Rating & Target

str. sell

-97%

Previous close

$28.35

 
Intrinsic value

$0.89

 
Up/down potential

-97%

 
Rating

str. sell

We calculate the intrinsic value of HRTX 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 1.0

 

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
  49
  76
  114
  165
  233
  320
  430
  564
  726
  917
  1,139
  1,392
  1,678
  1,996
  2,347
  2,731
  3,145
  3,591
  4,067
  4,573
  5,107
  5,670
  6,261
  6,879
  7,525
  8,198
  8,899
  9,629
  10,387
  11,176
Variable operating expenses, $m
  1,326
  2,049
  3,064
  4,445
  6,272
  8,622
  11,573
  15,196
  19,554
  24,698
  30,669
  37,496
  45,196
  53,774
  63,228
  73,550
  84,723
  96,731
  109,552
  123,169
  137,564
  152,721
  168,629
  185,280
  202,673
  220,809
  239,696
  259,346
  279,779
  301,016
Fixed operating expenses, $m
  144
  147
  151
  154
  157
  161
  164
  168
  172
  175
  179
  183
  187
  191
  195
  200
  204
  209
  213
  218
  223
  228
  233
  238
  243
  248
  254
  259
  265
  271
Total operating expenses, $m
  1,470
  2,196
  3,215
  4,599
  6,429
  8,783
  11,737
  15,364
  19,726
  24,873
  30,848
  37,679
  45,383
  53,965
  63,423
  73,750
  84,927
  96,940
  109,765
  123,387
  137,787
  152,949
  168,862
  185,518
  202,916
  221,057
  239,950
  259,605
  280,044
  301,287
Operating income, $m
  -1,421
  -2,120
  -3,100
  -4,434
  -6,196
  -8,462
  -11,308
  -14,800
  -18,999
  -23,956
  -29,710
  -36,287
  -43,705
  -51,969
  -61,076
  -71,019
  -81,782
  -93,348
  -105,698
  -118,815
  -132,679
  -147,278
  -162,601
  -178,639
  -195,391
  -212,859
  -231,050
  -249,977
  -269,657
  -290,111
EBITDA, $m
  -1,419
  -2,117
  -3,096
  -4,428
  -6,188
  -8,451
  -11,292
  -14,780
  -18,973
  -23,924
  -29,669
  -36,238
  -43,645
  -51,898
  -60,993
  -70,922
  -81,670
  -93,220
  -105,554
  -118,652
  -132,498
  -147,077
  -162,378
  -178,394
  -195,123
  -212,567
  -230,734
  -249,634
  -269,287
  -289,713
Interest expense (income), $m
  2
  2
  5
  10
  16
  25
  37
  51
  70
  93
  121
  153
  191
  234
  283
  338
  398
  463
  534
  610
  691
  778
  869
  965
  1,066
  1,171
  1,282
  1,397
  1,516
  1,641
  1,771
Earnings before tax, $m
  -1,423
  -2,125
  -3,110
  -4,450
  -6,221
  -8,499
  -11,359
  -14,870
  -19,092
  -24,077
  -29,863
  -36,478
  -43,939
  -52,252
  -61,414
  -71,417
  -82,245
  -93,882
  -106,308
  -119,506
  -133,457
  -148,147
  -163,566
  -179,705
  -196,562
  -214,141
  -232,447
  -251,494
  -271,298
  -291,881
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
  -1,423
  -2,125
  -3,110
  -4,450
  -6,221
  -8,499
  -11,359
  -14,870
  -19,092
  -24,077
  -29,863
  -36,478
  -43,939
  -52,252
  -61,414
  -71,417
  -82,245
  -93,882
  -106,308
  -119,506
  -133,457
  -148,147
  -163,566
  -179,705
  -196,562
  -214,141
  -232,447
  -251,494
  -271,298
  -291,881

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
  217
  335
  501
  727
  1,026
  1,410
  1,893
  2,485
  3,198
  4,039
  5,016
  6,133
  7,392
  8,795
  10,341
  12,029
  13,857
  15,821
  17,918
  20,145
  22,499
  24,978
  27,580
  30,303
  33,148
  36,114
  39,203
  42,417
  45,759
  49,232
Adjusted assets (=assets-cash), $m
  217
  335
  501
  727
  1,026
  1,410
  1,893
  2,485
  3,198
  4,039
  5,016
  6,133
  7,392
  8,795
  10,341
  12,029
  13,857
  15,821
  17,918
  20,145
  22,499
  24,978
  27,580
  30,303
  33,148
  36,114
  39,203
  42,417
  45,759
  49,232
Revenue / Adjusted assets
  0.226
  0.227
  0.228
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
Average production assets, $m
  9
  14
  20
  29
  41
  57
  76
  100
  129
  163
  203
  248
  299
  355
  418
  486
  560
  639
  724
  814
  909
  1,009
  1,114
  1,224
  1,339
  1,459
  1,584
  1,714
  1,849
  1,989
Working capital, $m
  -30
  -46
  -69
  -100
  -141
  -194
  -261
  -342
  -441
  -557
  -691
  -845
  -1,019
  -1,212
  -1,425
  -1,657
  -1,909
  -2,180
  -2,469
  -2,776
  -3,100
  -3,442
  -3,800
  -4,175
  -4,567
  -4,976
  -5,402
  -5,845
  -6,305
  -6,784
Total debt, $m
  73
  137
  228
  351
  514
  724
  988
  1,311
  1,700
  2,160
  2,693
  3,303
  3,990
  4,756
  5,600
  6,522
  7,520
  8,592
  9,737
  10,953
  12,239
  13,592
  15,013
  16,500
  18,053
  19,672
  21,359
  23,114
  24,938
  26,835
Total liabilities, $m
  118
  183
  274
  397
  560
  770
  1,033
  1,357
  1,746
  2,206
  2,739
  3,348
  4,036
  4,802
  5,646
  6,568
  7,566
  8,638
  9,783
  10,999
  12,284
  13,638
  15,058
  16,545
  18,099
  19,718
  21,405
  23,160
  24,984
  26,881
Total equity, $m
  98
  152
  227
  330
  466
  640
  859
  1,128
  1,452
  1,834
  2,277
  2,784
  3,356
  3,993
  4,695
  5,461
  6,291
  7,183
  8,135
  9,146
  10,215
  11,340
  12,521
  13,758
  15,049
  16,396
  17,798
  19,257
  20,774
  22,351
Total liabilities and equity, $m
  216
  335
  501
  727
  1,026
  1,410
  1,892
  2,485
  3,198
  4,040
  5,016
  6,132
  7,392
  8,795
  10,341
  12,029
  13,857
  15,821
  17,918
  20,145
  22,499
  24,978
  27,579
  30,303
  33,148
  36,114
  39,203
  42,417
  45,758
  49,232
Debt-to-equity ratio
  0.740
  0.900
  1.000
  1.060
  1.100
  1.130
  1.150
  1.160
  1.170
  1.180
  1.180
  1.190
  1.190
  1.190
  1.190
  1.190
  1.200
  1.200
  1.200
  1.200
  1.200
  1.200
  1.200
  1.200
  1.200
  1.200
  1.200
  1.200
  1.200
  1.200
Adjusted equity ratio
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454
  0.454

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -1,423
  -2,125
  -3,110
  -4,450
  -6,221
  -8,499
  -11,359
  -14,870
  -19,092
  -24,077
  -29,863
  -36,478
  -43,939
  -52,252
  -61,414
  -71,417
  -82,245
  -93,882
  -106,308
  -119,506
  -133,457
  -148,147
  -163,566
  -179,705
  -196,562
  -214,141
  -232,447
  -251,494
  -271,298
  -291,881
Depreciation, amort., depletion, $m
  2
  3
  4
  6
  8
  11
  15
  20
  26
  33
  41
  50
  60
  71
  84
  97
  112
  128
  145
  163
  182
  202
  223
  245
  268
  292
  317
  343
  370
  398
Funds from operations, $m
  -1,421
  -2,122
  -3,106
  -4,444
  -6,213
  -8,488
  -11,344
  -14,850
  -19,067
  -24,044
  -29,823
  -36,429
  -43,879
  -52,181
  -61,331
  -71,319
  -82,133
  -93,754
  -106,164
  -119,343
  -133,275
  -147,946
  -163,343
  -179,460
  -196,295
  -213,849
  -232,130
  -251,151
  -270,928
  -291,484
Change in working capital, $m
  -11
  -16
  -23
  -31
  -41
  -53
  -67
  -82
  -98
  -116
  -135
  -154
  -174
  -193
  -213
  -233
  -252
  -271
  -289
  -307
  -324
  -342
  -358
  -375
  -392
  -409
  -426
  -443
  -460
  -479
Cash from operations, $m
  -1,410
  -2,106
  -3,083
  -4,413
  -6,171
  -8,435
  -11,277
  -14,768
  -18,968
  -23,929
  -29,688
  -36,275
  -43,706
  -51,987
  -61,117
  -71,087
  -81,881
  -93,483
  -105,875
  -119,036
  -132,951
  -147,604
  -162,984
  -179,085
  -195,903
  -213,440
  -231,705
  -250,708
  -270,467
  -291,005
Maintenance CAPEX, $m
  -1
  -2
  -3
  -4
  -6
  -8
  -11
  -15
  -20
  -26
  -33
  -41
  -50
  -60
  -71
  -84
  -97
  -112
  -128
  -145
  -163
  -182
  -202
  -223
  -245
  -268
  -292
  -317
  -343
  -370
New CAPEX, $m
  -3
  -5
  -7
  -9
  -12
  -16
  -20
  -24
  -29
  -34
  -39
  -45
  -51
  -57
  -62
  -68
  -74
  -79
  -85
  -90
  -95
  -100
  -105
  -110
  -115
  -120
  -125
  -130
  -135
  -140
Cash from investing activities, $m
  -4
  -7
  -10
  -13
  -18
  -24
  -31
  -39
  -49
  -60
  -72
  -86
  -101
  -117
  -133
  -152
  -171
  -191
  -213
  -235
  -258
  -282
  -307
  -333
  -360
  -388
  -417
  -447
  -478
  -510
Free cash flow, $m
  -1,414
  -2,112
  -3,093
  -4,426
  -6,189
  -8,458
  -11,308
  -14,807
  -19,017
  -23,988
  -29,760
  -36,361
  -43,806
  -52,104
  -61,251
  -71,239
  -82,052
  -93,675
  -106,087
  -119,271
  -133,209
  -147,886
  -163,291
  -179,418
  -196,262
  -213,828
  -232,121
  -251,155
  -270,945
  -291,515
Issuance/(repayment) of debt, $m
  44
  65
  91
  123
  163
  210
  264
  324
  389
  459
  533
  610
  688
  766
  844
  922
  998
  1,072
  1,145
  1,216
  1,285
  1,354
  1,421
  1,487
  1,553
  1,620
  1,687
  1,755
  1,825
  1,896
Issuance/(repurchase) of shares, $m
  1,459
  2,179
  3,186
  4,553
  6,356
  8,673
  11,578
  15,139
  19,416
  24,459
  30,307
  36,985
  44,511
  52,889
  62,116
  72,183
  83,075
  94,773
  107,260
  120,517
  134,526
  149,273
  164,747
  180,941
  197,854
  215,487
  233,849
  252,953
  272,815
  293,458
Cash from financing (excl. dividends), $m  
  1,503
  2,244
  3,277
  4,676
  6,519
  8,883
  11,842
  15,463
  19,805
  24,918
  30,840
  37,595
  45,199
  53,655
  62,960
  73,105
  84,073
  95,845
  108,405
  121,733
  135,811
  150,627
  166,168
  182,428
  199,407
  217,107
  235,536
  254,708
  274,640
  295,354
Total cash flow (excl. dividends), $m
  89
  131
  184
  250
  330
  425
  534
  655
  788
  930
  1,080
  1,234
  1,392
  1,551
  1,709
  1,866
  2,020
  2,171
  2,318
  2,462
  2,603
  2,740
  2,876
  3,011
  3,145
  3,279
  3,415
  3,553
  3,694
  3,840
Retained Cash Flow (-), $m
  -1,459
  -2,179
  -3,186
  -4,553
  -6,356
  -8,673
  -11,578
  -15,139
  -19,416
  -24,459
  -30,307
  -36,985
  -44,511
  -52,889
  -62,116
  -72,183
  -83,075
  -94,773
  -107,260
  -120,517
  -134,526
  -149,273
  -164,747
  -180,941
  -197,854
  -215,487
  -233,849
  -252,953
  -272,815
  -293,458
Prev. year cash balance distribution, $m
  69
  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
  -1,301
  -2,048
  -3,002
  -4,303
  -6,026
  -8,249
  -11,045
  -14,484
  -18,628
  -23,529
  -29,227
  -35,751
  -43,119
  -51,338
  -60,407
  -70,317
  -81,054
  -92,603
  -104,942
  -118,055
  -131,923
  -146,532
  -161,871
  -177,931
  -194,709
  -212,208
  -230,435
  -249,400
  -269,121
  -289,619
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
  -1,247
  -1,875
  -2,613
  -3,543
  -4,671
  -5,986
  -7,462
  -9,053
  -10,701
  -12,335
  -13,879
  -15,256
  -16,395
  -17,235
  -17,734
  -17,869
  -17,636
  -17,054
  -16,158
  -15,001
  -13,645
  -12,158
  -10,609
  -9,062
  -7,574
  -6,191
  -4,946
  -3,859
  -2,938
  -2,181
Current shareholders' claim on cash, %
  25.2
  6.6
  1.8
  0.5
  0.2
  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

Heron Therapeutics, Inc. is a biotechnology company engaged in developing pharmaceutical products for patients suffering from cancer or pain. The Company's product candidates include SUSTOL, HTX-019 and HTX-011. All of its product candidates utilize science and technology platforms, including its Biochronomer drug delivery technology. The Company's SUSTOL (granisetron) injection, extended release is being developed for the prevention of both acute and delayed chemotherapy-induced nausea and vomiting (CINV) associated with moderately emetogenic chemotherapy (MEC) or highly emetogenic chemotherapy (HEC). HTX-019, which is an intravenous formulation of aprepitant, a neurokinin-1 (NK1) receptor antagonist, is being developed for the prevention of CINV. HTX-011, a long-acting formulation of the local anesthetic bupivacaine in a fixed-dose combination with the anti-inflammatory meloxicam, is being developed for the prevention of post-operative pain. HTX-011 is in Phase II clinical trials.

FINANCIAL RATIOS  of  Heron Therapeutics (HRTX)

Valuation Ratios
P/E Ratio -6.4
Price to Sales 1115.6
Price to Book -53.1
Price to Tangible Book
Price to Cash Flow -8.3
Price to Free Cash Flow -8.1
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 200%
Cap. Spend. - 3 Yr. Gr. Rate 8.4%
Financial Strength
Quick Ratio 17
Current Ratio 0
LT Debt to Equity -238.1%
Total Debt to Equity -252.4%
Interest Coverage -86
Management Effectiveness
Return On Assets -166.8%
Ret/ On Assets - 3 Yr. Avg. -119.1%
Return On Total Capital -227.6%
Ret/ On T. Cap. - 3 Yr. Avg. -148.7%
Return On Equity -356.7%
Return On Equity - 3 Yr. Avg. -193.4%
Asset Turnover 0
Profitability Ratios
Gross Margin 100%
Gross Margin - 3 Yr. Avg. 33.3%
EBITDA Margin -17000%
EBITDA Margin - 3 Yr. Avg. -5666.7%
Operating Margin -17100%
Oper. Margin - 3 Yr. Avg. -5700%
Pre-Tax Margin -17300%
Pre-Tax Margin - 3 Yr. Avg. -5766.7%
Net Profit Margin -17300%
Net Profit Margin - 3 Yr. Avg. -5766.7%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

HRTX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the HRTX stock intrinsic value calculation we used $30.767 million for the last fiscal year's total revenue generated by Heron Therapeutics. The default revenue input number comes from 0001 income statement of Heron Therapeutics. 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 HRTX 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 HRTX is calculated based on our internal credit rating of Heron Therapeutics, 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 Heron Therapeutics.
    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 HRTX stock the variable cost ratio is equal to 2693.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $141 million in the base year in the intrinsic value calculation for HRTX 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 7.1% for Heron Therapeutics.

Corporate tax rate of 27% is the nominal tax rate for Heron Therapeutics. 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 HRTX 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 HRTX are equal to 17.8%.

Life of production assets of 3.6 years is the average useful life of capital assets used in Heron Therapeutics 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 HRTX is equal to -60.7%. 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 - $131.136 million for Heron Therapeutics - 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 36.658 million for Heron Therapeutics 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 Heron Therapeutics at the current share price and the inputted number of shares is $1.0 billion.

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COMPANY NEWS

▶ Heron Therapeutics: 3Q Earnings Snapshot   [06:02PM  Associated Press]
▶ 2 Growth Stocks That Could Make You Rich   [Aug-09-18 06:32AM  Motley Fool]
▶ Heron Therapeutics: 2Q Earnings Snapshot   [08:55AM  Associated Press]
▶ Why Pacira Pharmaceuticals Stock Is on the Rise Today   [Jul-26-18 12:31PM  Motley Fool]
▶ 3 Biotech Stocks That Soared This Week: Are They Buys?   [Jun-23-18 07:15AM  Motley Fool]
▶ 3 Stocks the World's Best Investors Are Buying Right Now   [May-23-18 09:07AM  Motley Fool]
▶ Heron Therapeutics: 1Q Earnings Snapshot   [May-10-18 08:52AM  Associated Press]
▶ Harry Boxers four biotech stocks to watch today   [May-02-18 12:01PM  MarketWatch]
▶ Harry Boxers two biotechnology stocks to watch today   [Apr-26-18 11:19AM  MarketWatch]
▶ Why Heron Therapeutics Stock Soared Today   [Mar-19-18 05:47PM  Motley Fool]
▶ What Happened in the Stock Market Today   [05:03PM  Motley Fool]
▶ Heron Therapeutics reports 4Q loss   [Feb-28-18 05:04AM  Associated Press]
▶ Heron Therapeutics Joins Elite Club Of Stocks With RS Ratings Over 90   [Jan-11-18 03:00AM  Investor's Business Daily]
▶ 10 Strong Buy Stocks That Are Better Than Bitcoin   [Dec-14-17 02:49PM  InvestorPlace]
▶ Why Heron Therapeutics Stock Is Crashing Today   [Dec-05-17 05:04PM  Motley Fool]
▶ Heron Therapeutics Trying To Close In On Key Technical Benchmark   [Dec-01-17 03:00AM  Investor's Business Daily]
▶ 5 Small Biotechs Receive Shots in the Arm   [Nov-12-17 12:00PM  TheStreet.com]
▶ Heron Therapeutics reports 3Q loss   [Nov-06-17 08:41AM  Associated Press]
▶ What Does Heron Therapeutics Incs (HRTX) Share Price Indicate?   [Sep-08-17 08:50PM  Simply Wall St.]
▶ Heron Therapeutics Shows Rising Relative Strength; Still Shy Of Key Threshold   [Sep-06-17 03:00AM  Investor's Business Daily]
▶ Heron Therapeutics Shows Rising Price Performance With Jump To 82 RS Rating   [Aug-30-17 03:00AM  Investor's Business Daily]
▶ Heron Therapeutics Trying To Close In On Key Technical Benchmark   [Aug-29-17 03:00AM  Investor's Business Daily]

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