Pharmaceutical Product Development LLC is a leading global contract research organization providing drug discovery, development, lifecycle management and laboratory services. Its services include contact services, discovery, early development, clinical development, laboratories, post-approval, PPD consulting and industry expertise. The firm operates in the therapeutic areas that include cardiovascular, critical care, dermatology, dental pain research, endocrine and metabolics, gastroenterology, hematology and oncology, immunology, infectious diseases, neuroscience, ophthalmology, respiratory and urology. The company was founded in 1985 by Fredric N. Eshelman and is headquartered in Wilmington, NC.
PPD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for PPD Inc. To summarize, we found that PPD Inc ranked in the 6th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 97%. The most interesting components of our discounted cash flow analysis for PPD Inc ended up being:
The company's compound free cash flow growth rate over the past 0.78 years comes in at -0.29%; that's greater than only 4.94% of US stocks we're applying DCF forecasting to.
PPD Inc's weighted average cost of capital (WACC) is 9%; for context, that number is higher than 58.82% of tickers in our DCF set.
Relative to other stocks in its sector (Healthcare), PPD Inc has a reliance on debt greater than 71.96% of them.
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 PPD Inc? See INFU, OSMT, PHG, CTLT, and LUMO.
PPD (PPD) has priced its public offering of 38M common shares, to be sold by certain stockholders, including those affiliated with Hellman & Friedman and The Carlyle Group at $32.25/share.The selling stockholders granted the underwriters a 30-day option to purchase up to 5.7M shares. The Company will not receive any...