Intrinsic value of Shire ADR - SHPG

Previous Close

$145.69

  Intrinsic Value

$64.84

stock screener

  Rating & Target

str. sell

-55%

Previous close

$145.69

 
Intrinsic value

$64.84

 
Up/down potential

-55%

 
Rating

str. sell

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of SHPG 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   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, %
  77.61
  7.10
  6.89
  6.70
  6.53
  6.38
  6.24
  6.12
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
Revenue, $m
  11,397
  12,206
  13,047
  13,921
  14,831
  15,777
  16,761
  17,786
  18,854
  19,967
  21,128
  22,339
  23,603
  24,923
  26,303
  27,744
  29,251
  30,828
  32,477
  34,203
  36,011
  37,903
  39,885
  41,962
  44,138
  46,419
  48,810
  51,317
  53,945
  56,702
  59,593
Variable operating expenses, $m
 
  9,382
  9,905
  10,449
  11,014
  11,603
  12,215
  12,853
  13,517
  14,209
  14,931
  13,896
  14,682
  15,504
  16,361
  17,258
  18,196
  19,176
  20,202
  21,276
  22,400
  23,577
  24,810
  26,102
  27,456
  28,875
  30,362
  31,921
  33,556
  35,271
  37,070
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
  10,434
  9,382
  9,905
  10,449
  11,014
  11,603
  12,215
  12,853
  13,517
  14,209
  14,931
  13,896
  14,682
  15,504
  16,361
  17,258
  18,196
  19,176
  20,202
  21,276
  22,400
  23,577
  24,810
  26,102
  27,456
  28,875
  30,362
  31,921
  33,556
  35,271
  37,070
Operating income, $m
  963
  2,825
  3,142
  3,473
  3,817
  4,174
  4,546
  4,934
  5,337
  5,758
  6,197
  8,443
  8,921
  9,420
  9,941
  10,486
  11,056
  11,651
  12,275
  12,927
  13,610
  14,326
  15,075
  15,860
  16,682
  17,544
  18,448
  19,395
  20,389
  21,431
  22,523
EBITDA, $m
  2,429
  5,709
  6,103
  6,512
  6,937
  7,380
  7,840
  8,320
  8,819
  9,340
  9,883
  10,449
  11,041
  11,658
  12,303
  12,977
  13,682
  14,420
  15,191
  15,999
  16,844
  17,729
  18,656
  19,628
  20,646
  21,713
  22,831
  24,004
  25,233
  26,522
  27,875
Interest expense (income), $m
  284
  785
  882
  980
  1,081
  1,186
  1,295
  1,409
  1,528
  1,651
  1,780
  1,914
  2,054
  2,200
  2,353
  2,513
  2,679
  2,854
  3,036
  3,227
  3,426
  3,635
  3,854
  4,083
  4,323
  4,575
  4,839
  5,115
  5,405
  5,709
  6,028
Earnings before tax, $m
  486
  2,040
  2,260
  2,493
  2,736
  2,988
  3,251
  3,524
  3,809
  4,107
  4,417
  6,529
  6,867
  7,220
  7,588
  7,973
  8,376
  8,798
  9,239
  9,701
  10,184
  10,690
  11,221
  11,776
  12,359
  12,969
  13,609
  14,280
  14,984
  15,721
  16,495
Tax expense, $m
  -126
  551
  610
  673
  739
  807
  878
  952
  1,029
  1,109
  1,193
  1,763
  1,854
  1,949
  2,049
  2,153
  2,262
  2,375
  2,495
  2,619
  2,750
  2,886
  3,030
  3,180
  3,337
  3,502
  3,674
  3,856
  4,046
  4,245
  4,454
Net income, $m
  327
  1,489
  1,650
  1,820
  1,997
  2,181
  2,373
  2,573
  2,781
  2,998
  3,224
  4,766
  5,013
  5,270
  5,539
  5,821
  6,115
  6,422
  6,744
  7,081
  7,434
  7,804
  8,191
  8,597
  9,022
  9,467
  9,935
  10,424
  10,938
  11,477
  12,042

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  542
  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
  67,035
  71,381
  76,299
  81,412
  86,729
  92,261
  98,018
  104,012
  110,258
  116,767
  123,556
  130,638
  138,031
  145,751
  153,817
  162,247
  171,060
  180,279
  189,925
  200,019
  210,588
  221,655
  233,247
  245,392
  258,118
  271,456
  285,438
  300,097
  315,469
  331,589
  348,496
Adjusted assets (=assets-cash), $m
  66,493
  71,381
  76,299
  81,412
  86,729
  92,261
  98,018
  104,012
  110,258
  116,767
  123,556
  130,638
  138,031
  145,751
  153,817
  162,247
  171,060
  180,279
  189,925
  200,019
  210,588
  221,655
  233,247
  245,392
  258,118
  271,456
  285,438
  300,097
  315,469
  331,589
  348,496
Revenue / Adjusted assets
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
Average production assets, $m
  25,585
  27,403
  29,291
  31,254
  33,295
  35,418
  37,628
  39,930
  42,327
  44,826
  47,432
  50,151
  52,989
  55,953
  59,050
  62,286
  65,669
  69,208
  72,911
  76,786
  80,844
  85,092
  89,542
  94,205
  99,090
  104,211
  109,578
  115,206
  121,107
  127,295
  133,786
Working capital, $m
  -203
  2,490
  2,662
  2,840
  3,025
  3,218
  3,419
  3,628
  3,846
  4,073
  4,310
  4,557
  4,815
  5,084
  5,366
  5,660
  5,967
  6,289
  6,625
  6,977
  7,346
  7,732
  8,137
  8,560
  9,004
  9,469
  9,957
  10,469
  11,005
  11,567
  12,157
Total debt, $m
  22,968
  25,211
  27,990
  30,879
  33,883
  37,008
  40,261
  43,648
  47,177
  50,855
  54,690
  58,692
  62,869
  67,230
  71,788
  76,550
  81,530
  86,739
  92,188
  97,892
  103,863
  110,116
  116,665
  123,527
  130,718
  138,254
  146,154
  154,436
  163,121
  172,229
  181,781
Total liabilities, $m
  38,087
  40,330
  43,109
  45,998
  49,002
  52,127
  55,380
  58,767
  62,296
  65,974
  69,809
  73,811
  77,988
  82,349
  86,907
  91,669
  96,649
  101,858
  107,307
  113,011
  118,982
  125,235
  131,784
  138,646
  145,837
  153,373
  161,273
  169,555
  178,240
  187,348
  196,900
Total equity, $m
  28,948
  31,051
  33,190
  35,414
  37,727
  40,133
  42,638
  45,245
  47,962
  50,794
  53,747
  56,828
  60,044
  63,402
  66,910
  70,577
  74,411
  78,421
  82,617
  87,008
  91,606
  96,420
  101,462
  106,745
  112,281
  118,083
  124,166
  130,542
  137,229
  144,241
  151,596
Total liabilities and equity, $m
  67,035
  71,381
  76,299
  81,412
  86,729
  92,260
  98,018
  104,012
  110,258
  116,768
  123,556
  130,639
  138,032
  145,751
  153,817
  162,246
  171,060
  180,279
  189,924
  200,019
  210,588
  221,655
  233,246
  245,391
  258,118
  271,456
  285,439
  300,097
  315,469
  331,589
  348,496
Debt-to-equity ratio
  0.793
  0.810
  0.840
  0.870
  0.900
  0.920
  0.940
  0.960
  0.980
  1.000
  1.020
  1.030
  1.050
  1.060
  1.070
  1.080
  1.100
  1.110
  1.120
  1.130
  1.130
  1.140
  1.150
  1.160
  1.160
  1.170
  1.180
  1.180
  1.190
  1.190
  1.200
Adjusted equity ratio
  0.427
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  327
  1,489
  1,650
  1,820
  1,997
  2,181
  2,373
  2,573
  2,781
  2,998
  3,224
  4,766
  5,013
  5,270
  5,539
  5,821
  6,115
  6,422
  6,744
  7,081
  7,434
  7,804
  8,191
  8,597
  9,022
  9,467
  9,935
  10,424
  10,938
  11,477
  12,042
Depreciation, amort., depletion, $m
  1,466
  2,885
  2,960
  3,039
  3,121
  3,206
  3,294
  3,386
  3,482
  3,582
  3,686
  2,006
  2,120
  2,238
  2,362
  2,491
  2,627
  2,768
  2,916
  3,071
  3,234
  3,404
  3,582
  3,768
  3,964
  4,168
  4,383
  4,608
  4,844
  5,092
  5,351
Funds from operations, $m
  2,413
  4,374
  4,610
  4,859
  5,118
  5,387
  5,667
  5,959
  6,263
  6,580
  6,910
  6,772
  7,132
  7,508
  7,901
  8,312
  8,742
  9,191
  9,661
  10,153
  10,668
  11,208
  11,773
  12,365
  12,985
  13,636
  14,318
  15,033
  15,782
  16,568
  17,393
Change in working capital, $m
  -246
  165
  172
  178
  185
  193
  201
  209
  218
  227
  237
  247
  258
  269
  281
  294
  307
  322
  336
  352
  369
  386
  404
  424
  444
  465
  488
  511
  536
  562
  590
Cash from operations, $m
  2,659
  4,209
  4,439
  4,681
  4,932
  5,194
  5,466
  5,750
  6,045
  6,353
  6,673
  6,525
  6,874
  7,239
  7,620
  8,018
  8,434
  8,869
  9,324
  9,801
  10,299
  10,822
  11,368
  11,941
  12,542
  13,171
  13,830
  14,521
  15,246
  16,006
  16,803
Maintenance CAPEX, $m
  0
  -1,023
  -1,096
  -1,172
  -1,250
  -1,332
  -1,417
  -1,505
  -1,597
  -1,693
  -1,793
  -1,897
  -2,006
  -2,120
  -2,238
  -2,362
  -2,491
  -2,627
  -2,768
  -2,916
  -3,071
  -3,234
  -3,404
  -3,582
  -3,768
  -3,964
  -4,168
  -4,383
  -4,608
  -4,844
  -5,092
New CAPEX, $m
  -649
  -1,818
  -1,888
  -1,963
  -2,041
  -2,123
  -2,210
  -2,301
  -2,398
  -2,499
  -2,606
  -2,719
  -2,838
  -2,964
  -3,096
  -3,236
  -3,384
  -3,539
  -3,703
  -3,875
  -4,057
  -4,249
  -4,450
  -4,662
  -4,886
  -5,120
  -5,368
  -5,628
  -5,901
  -6,188
  -6,491
Cash from investing activities, $m
  -18,092
  -2,841
  -2,984
  -3,135
  -3,291
  -3,455
  -3,627
  -3,806
  -3,995
  -4,192
  -4,399
  -4,616
  -4,844
  -5,084
  -5,334
  -5,598
  -5,875
  -6,166
  -6,471
  -6,791
  -7,128
  -7,483
  -7,854
  -8,244
  -8,654
  -9,084
  -9,536
  -10,011
  -10,509
  -11,032
  -11,583
Free cash flow, $m
  -15,433
  1,367
  1,455
  1,546
  1,641
  1,739
  1,839
  1,943
  2,050
  2,161
  2,274
  1,909
  2,030
  2,156
  2,285
  2,420
  2,559
  2,703
  2,853
  3,009
  3,171
  3,339
  3,515
  3,697
  3,888
  4,086
  4,294
  4,510
  4,737
  4,973
  5,221
Issuance/(repayment) of debt, $m
  16,039
  2,785
  2,779
  2,889
  3,004
  3,125
  3,253
  3,387
  3,529
  3,678
  3,835
  4,002
  4,177
  4,362
  4,557
  4,763
  4,980
  5,209
  5,450
  5,704
  5,971
  6,253
  6,550
  6,862
  7,190
  7,536
  7,900
  8,282
  8,685
  9,108
  9,553
Issuance/(repurchase) of shares, $m
  129
  614
  490
  404
  316
  225
  131
  35
  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  
  15,997
  3,399
  3,269
  3,293
  3,320
  3,350
  3,384
  3,422
  3,529
  3,678
  3,835
  4,002
  4,177
  4,362
  4,557
  4,763
  4,980
  5,209
  5,450
  5,704
  5,971
  6,253
  6,550
  6,862
  7,190
  7,536
  7,900
  8,282
  8,685
  9,108
  9,553
Total cash flow (excl. dividends), $m
  564
  4,766
  4,723
  4,839
  4,961
  5,089
  5,223
  5,365
  5,579
  5,838
  6,110
  5,911
  6,207
  6,518
  6,843
  7,183
  7,539
  7,912
  8,303
  8,713
  9,142
  9,592
  10,064
  10,559
  11,078
  11,623
  12,194
  12,793
  13,422
  14,081
  14,773
Retained Cash Flow (-), $m
  -19,119
  -2,103
  -2,139
  -2,224
  -2,313
  -2,406
  -2,504
  -2,608
  -2,717
  -2,832
  -2,953
  -3,081
  -3,216
  -3,358
  -3,509
  -3,667
  -3,834
  -4,010
  -4,196
  -4,391
  -4,597
  -4,814
  -5,043
  -5,283
  -5,536
  -5,802
  -6,082
  -6,377
  -6,687
  -7,012
  -7,355
Prev. year cash balance distribution, $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 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
 
  2,663
  2,583
  2,615
  2,648
  2,683
  2,719
  2,757
  2,862
  3,007
  3,157
  2,830
  2,991
  3,159
  3,334
  3,516
  3,705
  3,902
  4,107
  4,321
  4,545
  4,778
  5,022
  5,276
  5,542
  5,820
  6,112
  6,416
  6,735
  7,069
  7,419
Discount rate, %
 
  8.00
  8.40
  8.82
  9.26
  9.72
  10.21
  10.72
  11.26
  11.82
  12.41
  13.03
  13.68
  14.37
  15.09
  15.84
  16.63
  17.46
  18.34
  19.25
  20.22
  21.23
  22.29
  23.40
  24.57
  25.80
  27.09
  28.45
  29.87
  31.36
  32.93
PV of cash for distribution, $m
 
  2,466
  2,199
  2,029
  1,858
  1,687
  1,517
  1,352
  1,219
  1,100
  980
  735
  642
  552
  466
  387
  316
  253
  198
  152
  114
  84
  60
  42
  28
  19
  12
  7
  4
  3
  1
Current shareholders' claim on cash, %
  100
  98.6
  97.6
  96.9
  96.3
  95.9
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7
  95.7

Shire plc is a biotech company focused on serving people with rare diseases and other specialized conditions. The Company's segment is engaged in research, development, licensing, manufacturing, marketing, distribution and sale of specialist medicines. It focuses its development resources on projects in various therapeutic areas (TAs), including Neuroscience, Ophthalmology, Hematology, Oncology, Immunology, Gastrointestinal (GI)/Metabolic/Endocrinology Diseases. Its Hematology products include ADVATE (Antihemophilic Factor (Recombinant)), ADYNOVATE/ADYNOVI (Antihemophilic Factor (Recombinant), PEGylated)), RIXUBIS (Coagulation Factor IX (Recombinant)), VONVENDI (von Willebrand factor (Recombinant)) and FEIBA (Anti-Inhibitor Coagulant Complex). Its Genetic Diseases products include CINRYZE (C1 esterase inhibitor (human)), FIRAZYR (icatibant), ELAPRASE (idursulfase), REPLAGAL (agalsidase alfa) and VPRIV (velaglucerase alfa).

FINANCIAL RATIOS  of  Shire ADR (SHPG)

Valuation Ratios
P/E Ratio 406.4
Price to Sales 11.7
Price to Book 4.6
Price to Tangible Book
Price to Cash Flow 50
Price to Free Cash Flow 66.1
Growth Rates
Sales Growth Rate 77.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 464.3%
Cap. Spend. - 3 Yr. Gr. Rate 32.8%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 68.7%
Total Debt to Equity 79.3%
Interest Coverage 3
Management Effectiveness
Return On Assets 1.6%
Ret/ On Assets - 3 Yr. Avg. 13.8%
Return On Total Capital 1%
Ret/ On T. Cap. - 3 Yr. Avg. 19.8%
Return On Equity 1.7%
Return On Equity - 3 Yr. Avg. 21.4%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 66.5%
Gross Margin - 3 Yr. Avg. 78.9%
EBITDA Margin 19.6%
EBITDA Margin - 3 Yr. Avg. 38%
Operating Margin 8.4%
Oper. Margin - 3 Yr. Avg. 28.6%
Pre-Tax Margin 4.3%
Pre-Tax Margin - 3 Yr. Avg. 27.1%
Net Profit Margin 2.9%
Net Profit Margin - 3 Yr. Avg. 26.6%
Effective Tax Rate -25.9%
Eff/ Tax Rate - 3 Yr. Avg. -7%
Payout Ratio 52.3%

SHPG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SHPG stock intrinsic value calculation we used $11397 million for the last fiscal year's total revenue generated by Shire ADR. The default revenue input number comes from 2016 income statement of Shire ADR. 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 SHPG stock valuation model: a) initial revenue growth rate of 7.1% 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 8%, whose default value for SHPG is calculated based on our internal credit rating of Shire ADR, 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 Shire ADR.
    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 SHPG stock the variable cost ratio is equal to 77.9%.

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 SHPG 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 3.5% for Shire ADR.

Corporate tax rate of 27% is the nominal tax rate for Shire ADR. 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 SHPG 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 SHPG are equal to 224.5%.

Life of production assets of 25 years is the average useful life of capital assets used in Shire ADR 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 SHPG is equal to 20.4%. 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 - $28948 million for Shire ADR - 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 304.732 million for Shire ADR 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 Shire ADR at the current share price and the inputted number of shares is $44.4 billion.

RELATED COMPANIES Price Int.Val. Rating
SNY Sanofi ADR 44.51 40.06  hold
GSK GlaxoSmithKlin 38.17 42.07  hold
NVS Novartis ADR 86.41 39.03  str.sell
AMGN Amgen 187.59 96.45  sell
PFE Pfizer 36.99 28.29  sell

COMPANY NEWS

▶ Shire plc : Directorate change   [Jan-19-18 05:01AM  GlobeNewswire]
▶ How Is Bioverativs Alprolix Positioned Now?   [Jan-11-18 09:04AM  Market Realist]
▶ How Is Bioverativs Eloctate Positioned Now?   [07:35AM  Market Realist]
▶ How Is Roches Hemlibra Positioned for 2018?   [07:33AM  Market Realist]
▶ Full interview with Shire CEO Flemming Ørnskov   [Jan-08-18 06:01PM  CNBC Videos]
▶ Shire cuts sales outlook; still considering spinout of ADHD drugs   [12:55PM  American City Business Journals]
▶ Shire plc : Total voting rights   [Jan-02-18 08:01AM  GlobeNewswire]
▶ Shire plc : Director Declaration   [05:01AM  GlobeNewswire]
▶ Shire: If You Build It   [Dec-27-17 11:54AM  Barrons.com]
▶ Rare-Disease Portfolio Digs Shire a Moat   [Dec-22-17 07:00AM  Morningstar]
▶ Shire plc : Director/PDMR Shareholding   [Dec-20-17 07:31AM  GlobeNewswire]
▶ Shire plc : Director Declaration   [07:01AM  GlobeNewswire]
▶ Shire plc : Directorate change   [Dec-08-17 11:01AM  GlobeNewswire]
▶ How Financially Strong Is Shire plc (LSE:SHP)?   [05:47AM  Simply Wall St.]
▶ Shire plc : Total voting rights   [Dec-01-17 07:31AM  GlobeNewswire]
▶ Shire plc : Block listing Interim Review   [Nov-25-17 07:08AM  GlobeNewswire]
▶ Is Shire Bleeding Out?   [Nov-20-17 11:40AM  Barrons.com]
▶ Shire plc : Directorate change   [08:01AM  GlobeNewswire]
▶ Why Shire plc (LSE:SHP) Could Be A Buy   [07:05AM  Simply Wall St.]
▶ The Only 3 Big Pharma Companies Growing Market Share   [Nov-07-17 06:02AM  Motley Fool]
▶ ETFs with exposure to Shire Plc : November 3, 2017   [Nov-03-17 12:32PM  Capital Cube]
▶ Shire plc : Director/PDMR Shareholding   [06:01AM  GlobeNewswire]
▶ Shire plc : Total voting rights   [Nov-01-17 08:02AM  GlobeNewswire]
▶ Shire to sell 100-employee Milford site as part of manufacturing slim-down   [Oct-27-17 01:05PM  American City Business Journals]
▶ Shire beats 3Q profit forecasts   [07:28AM  Associated Press]
▶ Shire plc : 3rd Quarter Results   [07:02AM  GlobeNewswire]
▶ ETFs with exposure to Shire Plc : October 23, 2017   [Oct-23-17 11:03AM  Capital Cube]
▶ ETFs with exposure to Shire Plc : October 10, 2017   [Oct-10-17 11:49AM  Capital Cube]
▶ Shire plc : Director/PDMR Shareholding   [Oct-05-17 07:02AM  GlobeNewswire]
▶ Shire plc : Director/PDMR Shareholding   [Oct-03-17 07:02AM  GlobeNewswire]
▶ Shire Alleges Allergan Blocked Drug From Medicare Contracts   [01:04AM  The Wall Street Journal]
▶ Shire Alleges Allergan Blocked Drug From Medicare Contracts   [Oct-02-17 02:00PM  The Wall Street Journal]
▶ Shire plc : Total voting rights   [09:02AM  GlobeNewswire]
▶ Should You Sell Shire plc (LSE:SHP) At £37.78?   [Sep-29-17 10:36AM  Simply Wall St.]
▶ Why Allergan is Jumping   [Sep-25-17 11:42AM  Barrons.com]
▶ Is Shire plc (SHPG) a Suitable Value Stock?   [Sep-21-17 09:50AM  Zacks]
▶ Whats Coopermans View on Shire?   [Sep-15-17 07:39AM  Market Realist]
▶ Here's Why Shire PLC Stock Fell 10% in August   [Sep-07-17 01:03PM  Motley Fool]
▶ Shire plc : Total voting rights   [Sep-01-17 06:32AM  GlobeNewswire]
▶ Shire plc : Director/PDMR Shareholding   [Aug-23-17 07:02AM  GlobeNewswire]
▶ Shire chief financial officer joins Boston ag-tech startup   [05:33AM  American City Business Journals]
▶ Shire plc : Director/PDMR Shareholding   [Aug-22-17 11:32AM  GlobeNewswire]
▶ UPDATE: Shire: There Goes the CFO!   [Aug-21-17 01:29PM  Barrons.com]
▶ Shire applies for European approval of potential blockbuster eye drop   [Aug-15-17 06:00AM  American City Business Journals]
▶ Shire plc : Director/PDMR Shareholding   [Aug-09-17 09:17AM  GlobeNewswire]
▶ Shire plc : Half-yearly report   [02:52AM  GlobeNewswire]
Financial statements of SHPG
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.