Bio-Techne (TECH:NAS) Fundamental Valuation Report

Fundamental Valuation Report

Bio-Techne(TECH:NAS)

Healthcare:Biotechnology

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$170.57 (USD) 05/11/2018

Weighted Valuation
$157.47 (USD)

Overall Rating
Overvalued by 7.7%

Valuation Models Analyst Consensus: $175.00 (USD)
(in order of importance) Adjusted Book Value: $131.17 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation

Company Overview (TECH:NAS USD)

Price 170.57
Range 167.46 – 172.78
52 week 124.24 – 204.11
Open 170.39
Vol / Avg. 238042/290825
Mkt cap 6.44B
P/E 51.53
Div/yield 1.28/0.01
EPS 3.31
Shares 37.76M
Beta 1.04

Company Description

Bio-Techne Corp is a biotechnology company that develops, manufactures, and sells biotechnology products for research and clinical diagnostic markets worldwide. Bio-Techne develops specialized proteins, including cytokines and growth factors, antibodies, related immunoassays, biologically-active small molecules, and other reagents, as well as instrumentation designed to simplify key protein analysis processes. The company also serves the clinical markets with regulated products such as controls, calibrators, reagents, and immunoassays intended for diagnostic uses.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for TECH:NAS

Using a discounted cash flow model we generated an intrinsic value of $92.58 (USD) for TECH:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

TECH:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $92.58 1% 5% 1% 5%
WACC (or Ke) 8.92 $113.51 $77.70
Terminal Growth Rate 3.00 $79.18 $111.41
Tax Rate 0.00 $98.03 $87.20
Cash Flow 277,736,473 $86.96 $98.19
Capital Expenditures -17,347,400 $92.28 $92.88
Long Term Debt 347,233,000 $93.04 $92.12

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $78.32 (USD) for TECH:NAS. We also generated a valuation of $98.58 (USD) using other metrics and comparables.
The comparable companies were Exelixis (EXEL:NAS), Nektar Therapeutics (NKTR:NAS), Repligen (RGEN:NAS), Seattle Genetics (SGEN:NAS) and United Therapeutics (UTHR:NAS).

Company TECH:NAS End Date Value
Earnings/Share $3.31 (USD)
Book Value/Share $28.58 (USD)
Sales/Share $16.90 (USD)
Cash Flow/Share $4.48 (USD)
EBITDA/Share $5.27 (USD)
Price Based on Comps Adjustment Factor (%)
$109.49 (USD) -39.9
$121.62 (USD) -53.7
$142.57 (USD) -44.5
$156.34 (USD) -59.1
$131.77 (USD) 0.0
TECH:NAS Ratios Used Average Values EXEL:NAS NKTR:NAS RGEN:NAS SGEN:NAS UTHR:NAS
50.67 PE Ratio 33.08 13.47 7.60 102.30 0.00 8.95
5.87 PB Ratio 4.26 5.35 3.59 3.97 6.59 1.78
9.93 PS Ratio 8.44 6.46 4.72 14.02 14.14 2.85
37.46 PCF Ratio 36.91 18.26 7.06 113.83 0.00 8.50
32.35 EV to EBITDA 25.00 11.20 5.30 78.99 0.00 4.50

Multiples

Using a multiples approach we generated a valuation of  $130.20 (USD) for TECH:NAS

Company TECH:NAS End Date Value
Earnings/Share $3.31 (USD)
Book Value/Share $28.58 (USD)
Sales/Share $16.90 (USD)
Cash Flow/Share $4.48 (USD)
EBITDA/Share $5.27 (USD)
Price Based on Comps Adjustment Factor
$133.40 (USD) 0
$130.69 (USD) 0
$142.81 (USD) 0
$126.15 (USD) 0
$117.95 (USD) 0
Ratios Ratio Average
PE Ratio 40.30
PB Ratio 4.57
PS Ratio 8.45
PCF Ratio 28.18
EV to EBITDA 22.38

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  TECH:NAS for the last 10 years was  4.57

We ran the Adjusted Book Value for  TECH:NAS and generated a book value of  $28.69 (USD)
By multiplying these we get an adjusted valuation of  $131.17 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for TECH:NAS. The 1 analysts have a concensus valuation for TECH:NAS for 2019 of $175.00 (USD).

TECH:NAS Bio-Techne

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 1 0 4.0000 Outperform 2018-11-2

Current Price: 170.57 USD

Analyst Consensus
USD Millions 2019 2020 2021
Mean EPS 4.86 5.69 5.76
# EPS Analysts 2 2 1
Mean Revenue 707.00 782.40 864.30
# Revenue Analysts 1 1 1
Mean Target Price 175.00
Mean Cash Flow 4.64 4.91 5.80
Mean EBITDA
Mean Net Income 167.50 193.10 219.90
Mean Debt Outstanding
Mean Tax Rate 33.50 34.40 35.30
Mean Growth Rate
Mean Capital Expenditure 30.50 34.50 38.10

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


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