Intrinsic value of Ultragenyx Pharmaceutical Inc. - RARE

Previous Close

$62.10

  Intrinsic Value

$2.12

stock screener

  Rating & Target

str. sell

-97%

Previous close

$62.10

 
Intrinsic value

$2.12

 
Up/down potential

-97%

 
Rating

str. sell

We calculate the intrinsic value of RARE 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 3.2

 

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
  82
  126
  189
  274
  386
  531
  712
  935
  1,203
  1,520
  1,887
  2,308
  2,781
  3,309
  3,891
  4,526
  5,214
  5,953
  6,742
  7,580
  8,466
  9,399
  10,378
  11,402
  12,473
  13,589
  14,751
  15,961
  17,218
  18,525
Variable operating expenses, $m
  2,062
  3,176
  4,740
  6,870
  9,686
  13,309
  17,859
  23,445
  30,163
  38,093
  47,282
  57,807
  69,676
  82,901
  97,477
  113,389
  130,615
  149,126
  168,893
  189,886
  212,078
  235,444
  259,969
  285,640
  312,453
  340,413
  369,530
  399,825
  431,325
  464,065
Fixed operating expenses, $m
  278
  284
  290
  297
  303
  310
  317
  324
  331
  338
  346
  353
  361
  369
  377
  385
  394
  402
  411
  420
  430
  439
  449
  459
  469
  479
  489
  500
  511
  523
Total operating expenses, $m
  2,340
  3,460
  5,030
  7,167
  9,989
  13,619
  18,176
  23,769
  30,494
  38,431
  47,628
  58,160
  70,037
  83,270
  97,854
  113,774
  131,009
  149,528
  169,304
  190,306
  212,508
  235,883
  260,418
  286,099
  312,922
  340,892
  370,019
  400,325
  431,836
  464,588
Operating income, $m
  -2,258
  -3,334
  -4,842
  -6,894
  -9,603
  -13,089
  -17,464
  -22,833
  -29,290
  -36,912
  -45,740
  -55,852
  -67,256
  -79,961
  -93,963
  -109,248
  -125,795
  -143,576
  -162,562
  -182,726
  -204,041
  -226,485
  -250,040
  -274,696
  -300,449
  -327,303
  -355,269
  -384,365
  -414,618
  -446,063
EBITDA, $m
  -2,223
  -3,290
  -4,785
  -6,818
  -9,504
  -12,959
  -17,296
  -22,619
  -29,019
  -36,574
  -45,342
  -55,365
  -66,669
  -79,263
  -93,142
  -108,293
  -124,695
  -142,320
  -161,140
  -181,127
  -202,255
  -224,502
  -247,850
  -272,290
  -297,818
  -324,436
  -352,157
  -380,998
  -410,986
  -442,155
Interest expense (income), $m
  0
  0
  4
  9
  16
  26
  39
  56
  78
  104
  136
  173
  216
  265
  321
  383
  452
  526
  607
  694
  787
  885
  990
  1,099
  1,214
  1,335
  1,461
  1,592
  1,729
  1,871
  2,019
Earnings before tax, $m
  -2,258
  -3,337
  -4,851
  -6,910
  -9,629
  -13,128
  -17,520
  -22,911
  -29,394
  -37,047
  -45,913
  -56,068
  -67,521
  -80,282
  -94,346
  -109,700
  -126,321
  -144,183
  -163,257
  -183,513
  -204,927
  -227,474
  -251,139
  -275,910
  -301,784
  -328,764
  -356,861
  -386,094
  -416,489
  -448,082
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
  -2,258
  -3,337
  -4,851
  -6,910
  -9,629
  -13,128
  -17,520
  -22,911
  -29,394
  -37,047
  -45,913
  -56,068
  -67,521
  -80,282
  -94,346
  -109,700
  -126,321
  -144,183
  -163,257
  -183,513
  -204,927
  -227,474
  -251,139
  -275,910
  -301,784
  -328,764
  -356,861
  -386,094
  -416,489
  -448,082

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
  537
  829
  1,240
  1,800
  2,539
  3,491
  4,686
  6,153
  7,917
  10,000
  12,417
  15,181
  18,299
  21,772
  25,600
  29,779
  34,303
  39,164
  44,355
  49,869
  55,697
  61,833
  68,274
  75,016
  82,058
  89,401
  97,048
  105,004
  113,276
  121,875
Adjusted assets (=assets-cash), $m
  537
  829
  1,240
  1,800
  2,539
  3,491
  4,686
  6,153
  7,917
  10,000
  12,417
  15,181
  18,299
  21,772
  25,600
  29,779
  34,303
  39,164
  44,355
  49,869
  55,697
  61,833
  68,274
  75,016
  82,058
  89,401
  97,048
  105,004
  113,276
  121,875
Revenue / Adjusted assets
  0.153
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
  0.152
Average production assets, $m
  177
  274
  410
  594
  839
  1,153
  1,548
  2,032
  2,615
  3,303
  4,101
  5,014
  6,044
  7,191
  8,456
  9,836
  11,330
  12,936
  14,650
  16,471
  18,396
  20,423
  22,551
  24,777
  27,103
  29,529
  32,054
  34,682
  37,415
  40,255
Working capital, $m
  -19
  -30
  -45
  -65
  -91
  -126
  -169
  -222
  -285
  -360
  -447
  -547
  -659
  -784
  -922
  -1,073
  -1,236
  -1,411
  -1,598
  -1,796
  -2,006
  -2,227
  -2,460
  -2,702
  -2,956
  -3,221
  -3,496
  -3,783
  -4,081
  -4,390
Total debt, $m
  67
  164
  300
  485
  730
  1,045
  1,440
  1,926
  2,510
  3,199
  3,999
  4,914
  5,946
  7,096
  8,363
  9,746
  11,244
  12,853
  14,571
  16,396
  18,325
  20,356
  22,488
  24,720
  27,050
  29,481
  32,012
  34,646
  37,384
  40,230
Total liabilities, $m
  178
  275
  411
  596
  840
  1,155
  1,551
  2,037
  2,620
  3,310
  4,110
  5,025
  6,057
  7,206
  8,474
  9,857
  11,354
  12,963
  14,682
  16,507
  18,436
  20,467
  22,599
  24,830
  27,161
  29,592
  32,123
  34,756
  37,494
  40,341
Total equity, $m
  359
  555
  830
  1,204
  1,699
  2,335
  3,135
  4,116
  5,296
  6,690
  8,307
  10,156
  12,242
  14,565
  17,126
  19,922
  22,948
  26,201
  29,674
  33,362
  37,261
  41,367
  45,675
  50,186
  54,897
  59,809
  64,925
  70,247
  75,782
  81,534
Total liabilities and equity, $m
  537
  830
  1,241
  1,800
  2,539
  3,490
  4,686
  6,153
  7,916
  10,000
  12,417
  15,181
  18,299
  21,771
  25,600
  29,779
  34,302
  39,164
  44,356
  49,869
  55,697
  61,834
  68,274
  75,016
  82,058
  89,401
  97,048
  105,003
  113,276
  121,875
Debt-to-equity ratio
  0.190
  0.300
  0.360
  0.400
  0.430
  0.450
  0.460
  0.470
  0.470
  0.480
  0.480
  0.480
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
Adjusted equity ratio
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669
  0.669

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -2,258
  -3,337
  -4,851
  -6,910
  -9,629
  -13,128
  -17,520
  -22,911
  -29,394
  -37,047
  -45,913
  -56,068
  -67,521
  -80,282
  -94,346
  -109,700
  -126,321
  -144,183
  -163,257
  -183,513
  -204,927
  -227,474
  -251,139
  -275,910
  -301,784
  -328,764
  -356,861
  -386,094
  -416,489
  -448,082
Depreciation, amort., depletion, $m
  35
  44
  57
  75
  99
  129
  168
  215
  271
  338
  398
  487
  587
  698
  821
  955
  1,100
  1,256
  1,422
  1,599
  1,786
  1,983
  2,189
  2,406
  2,631
  2,867
  3,112
  3,367
  3,632
  3,908
Funds from operations, $m
  -2,223
  -3,293
  -4,794
  -6,835
  -9,531
  -12,999
  -17,353
  -22,696
  -29,123
  -36,709
  -45,515
  -55,581
  -66,935
  -79,584
  -93,525
  -108,745
  -125,221
  -142,927
  -161,834
  -181,914
  -203,141
  -225,491
  -248,950
  -273,505
  -299,152
  -325,897
  -353,749
  -382,726
  -412,857
  -444,173
Change in working capital, $m
  -7
  -11
  -15
  -20
  -27
  -34
  -43
  -53
  -64
  -75
  -87
  -100
  -112
  -125
  -138
  -151
  -163
  -175
  -187
  -199
  -210
  -221
  -232
  -243
  -254
  -265
  -275
  -287
  -298
  -310
Cash from operations, $m
  -2,216
  -3,283
  -4,779
  -6,814
  -9,504
  -12,965
  -17,309
  -22,644
  -29,059
  -36,634
  -45,427
  -55,482
  -66,822
  -79,459
  -93,387
  -108,594
  -125,058
  -142,752
  -161,647
  -181,715
  -202,931
  -225,270
  -248,718
  -273,262
  -298,899
  -325,632
  -353,473
  -382,440
  -412,559
  -443,864
Maintenance CAPEX, $m
  -11
  -17
  -27
  -40
  -58
  -81
  -112
  -150
  -197
  -254
  -321
  -398
  -487
  -587
  -698
  -821
  -955
  -1,100
  -1,256
  -1,422
  -1,599
  -1,786
  -1,983
  -2,189
  -2,406
  -2,631
  -2,867
  -3,112
  -3,367
  -3,632
New CAPEX, $m
  -66
  -97
  -136
  -185
  -244
  -314
  -395
  -485
  -583
  -688
  -799
  -913
  -1,030
  -1,147
  -1,264
  -1,380
  -1,494
  -1,606
  -1,715
  -1,821
  -1,925
  -2,027
  -2,127
  -2,227
  -2,326
  -2,425
  -2,526
  -2,628
  -2,732
  -2,840
Cash from investing activities, $m
  -77
  -114
  -163
  -225
  -302
  -395
  -507
  -635
  -780
  -942
  -1,120
  -1,311
  -1,517
  -1,734
  -1,962
  -2,201
  -2,449
  -2,706
  -2,971
  -3,243
  -3,524
  -3,813
  -4,110
  -4,416
  -4,732
  -5,056
  -5,393
  -5,740
  -6,099
  -6,472
Free cash flow, $m
  -2,293
  -3,397
  -4,942
  -7,039
  -9,806
  -13,360
  -17,816
  -23,278
  -29,839
  -37,576
  -46,547
  -56,793
  -68,339
  -81,193
  -95,350
  -110,795
  -127,507
  -145,458
  -164,618
  -184,959
  -206,455
  -229,083
  -252,828
  -277,678
  -303,630
  -330,689
  -358,866
  -388,180
  -418,658
  -450,336
Issuance/(repayment) of debt, $m
  67
  97
  136
  185
  245
  315
  396
  486
  584
  689
  800
  915
  1,032
  1,150
  1,267
  1,383
  1,497
  1,609
  1,718
  1,825
  1,929
  2,031
  2,132
  2,232
  2,331
  2,430
  2,531
  2,633
  2,738
  2,846
Issuance/(repurchase) of shares, $m
  2,393
  3,533
  5,126
  7,284
  10,124
  13,765
  18,320
  23,893
  30,575
  38,441
  47,530
  57,917
  69,607
  82,605
  96,907
  112,495
  129,347
  147,435
  166,729
  187,202
  208,826
  231,580
  255,448
  280,420
  306,495
  333,676
  361,976
  391,416
  422,024
  453,834
Cash from financing (excl. dividends), $m  
  2,460
  3,630
  5,262
  7,469
  10,369
  14,080
  18,716
  24,379
  31,159
  39,130
  48,330
  58,832
  70,639
  83,755
  98,174
  113,878
  130,844
  149,044
  168,447
  189,027
  210,755
  233,611
  257,580
  282,652
  308,826
  336,106
  364,507
  394,049
  424,762
  456,680
Total cash flow (excl. dividends), $m
  167
  233
  321
  430
  563
  719
  899
  1,100
  1,319
  1,554
  1,784
  2,039
  2,300
  2,562
  2,824
  3,083
  3,338
  3,587
  3,830
  4,068
  4,300
  4,528
  4,752
  4,974
  5,195
  5,418
  5,642
  5,870
  6,104
  6,344
Retained Cash Flow (-), $m
  -2,393
  -3,533
  -5,126
  -7,284
  -10,124
  -13,765
  -18,320
  -23,893
  -30,575
  -38,441
  -47,530
  -57,917
  -69,607
  -82,605
  -96,907
  -112,495
  -129,347
  -147,435
  -166,729
  -187,202
  -208,826
  -231,580
  -255,448
  -280,420
  -306,495
  -333,676
  -361,976
  -391,416
  -422,024
  -453,834
Prev. year cash balance distribution, $m
  385
  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
  -1,841
  -3,300
  -4,805
  -6,854
  -9,561
  -13,045
  -17,421
  -22,793
  -29,256
  -36,887
  -45,746
  -55,878
  -67,307
  -80,043
  -94,083
  -109,412
  -126,010
  -143,848
  -162,899
  -183,134
  -204,526
  -227,052
  -250,696
  -275,446
  -301,299
  -328,258
  -356,335
  -385,546
  -415,920
  -447,490
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
  -1,765
  -3,021
  -4,182
  -5,643
  -7,411
  -9,468
  -11,769
  -14,246
  -16,806
  -19,338
  -21,724
  -23,845
  -25,591
  -26,872
  -27,621
  -27,804
  -27,418
  -26,491
  -25,082
  -23,271
  -21,155
  -18,839
  -16,431
  -14,029
  -11,721
  -9,577
  -7,648
  -5,965
  -4,540
  -3,369
Current shareholders' claim on cash, %
  32.9
  11.4
  4.1
  1.5
  0.6
  0.2
  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
  0.0
  0.0
  0.0
  0.0
  0.0

Ultragenyx Pharmaceutical Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the identification, acquisition, development, and commercialization of products for the treatment of genetic diseases. Its clinical-stage pipeline consists of two product categories: biologics (including a monoclonal antibody and an enzyme replacement therapy), and small-molecule substrate replacement therapies. Its product candidates under biologics category include KRN23 (UX023) and recombinant human beta-glucuronidase (rhGUS) (UX003). Its product candidates under small-molecule category include UX007 and aceneuramic acid extended-release (Ace-ER) (UX001). It is also developing recombinant human protective protein cathepsin-A (rhPPCA). KRN23 is a fully human monoclonal antibody. rhGUS is an intravenous (IV) enzyme replacement therapy. UX007 is a substrate replacement therapy. It is developing Ace-ER for the treatment of GNE myopathy. rhPPCA is in preclinical development.

FINANCIAL RATIOS  of  Ultragenyx Pharmaceutical Inc. (RARE)

Valuation Ratios
P/E Ratio -10.4
Price to Sales 0
Price to Book 5.4
Price to Tangible Book
Price to Cash Flow -15.9
Price to Free Cash Flow -15
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 100%
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 0
Management Effectiveness
Return On Assets -44.7%
Ret/ On Assets - 3 Yr. Avg. -43.2%
Return On Total Capital -49%
Ret/ On T. Cap. - 3 Yr. Avg. -46.9%
Return On Equity -49%
Return On Equity - 3 Yr. Avg. -46.9%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

RARE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the RARE stock intrinsic value calculation we used $51 million for the last fiscal year's total revenue generated by Ultragenyx Pharmaceutical Inc.. The default revenue input number comes from 0001 income statement of Ultragenyx Pharmaceutical 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 RARE 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 RARE is calculated based on our internal credit rating of Ultragenyx Pharmaceutical 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 Ultragenyx Pharmaceutical 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 RARE stock the variable cost ratio is equal to 2539.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $272 million in the base year in the intrinsic value calculation for RARE 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 Ultragenyx Pharmaceutical Inc..

Corporate tax rate of 27% is the nominal tax rate for Ultragenyx Pharmaceutical 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 RARE 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 RARE are equal to 217.3%.

Life of production assets of 10.3 years is the average useful life of capital assets used in Ultragenyx Pharmaceutical 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 RARE is equal to -23.7%. 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 - $608.908 million for Ultragenyx Pharmaceutical 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 51.267 million for Ultragenyx Pharmaceutical 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 Ultragenyx Pharmaceutical Inc. at the current share price and the inputted number of shares is $3.2 billion.

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