Alexion Pharmaceuticals a biopharmaceutical company, develops and commercializes life-transforming therapeutic products. The company was founded in 1992 and is based in Cheshire, Connecticut.
ALXN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Alexion Pharmaceuticals Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Alexion Pharmaceuticals Inc ranked in the 70th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 220.17% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for ALXN, they are:
The company has produced more trailing twelve month cash flow than 86.5% of its sector Healthcare.
The business' balance sheet suggests that 9% of the company's capital is sourced from debt; this is greater than just 21.85% of the free cash flow producing stocks we're observing.
Alexion Pharmaceuticals Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Alexion Pharmaceuticals Inc? See LCI, SGRY, UHS, ADUS, and MYL.
In the current session, Alexion Pharmaceuticals Inc. (NASDAQ: ALXN) is trading at $108.21, after a 2.71% spike. Over the past month, the stock increased by 4.74%, and in the past year, by 0.35%. With performance like this, long-term shareholders optimistic but others are more likely to look into the price-to-earnings ratio to see if the stock might be overvalued.Assuming that all other factors are held constant, this could present itself as an opportunity for shareholders trying to capitalize on the higher share price. The stock is currently below from its 52 week high by 10.94%.The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E indicates that shareholde...