DURECT Corporation, a specialty pharmaceutical company, focuses on the development of pharmaceuticals products based on its proprietary drug formulations and delivery platform technologies in the United States, Europe, Japan, and internationally. The company was founded in 1998 and is based in Cupertino, California.
DRRX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for DRRX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Durect Corp ranked in the 98th percentile in terms of potential gain offered. Our DCF model suggests the stock is undervalued by 20623.33%; returns of such proportions should be viewed with some skepticism, though. In terms of the factors that were most noteworthy in this DCF analysis for DRRX, they are:
Interest coverage, a measure of earnings relative to interest payments, is -7.23; that's higher than merely 9.56% of US stocks in the Healthcare sector that have positive free cash flow.
The business' balance sheet reveals debt to be 9% of the company's capital (with equity being the remaining amount). Approximately merely 19.4% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DRRX, try NVCR, FVE, VRTX, QHC, and ASRT.