Nektar Therapeutics (NKTR:NAS) Fundamental Valuation Report

Nektar Therapeutics (NKTR:NAS) Fundamental Valuation Report

Fundamental Valuation Report

Nektar Therapeutics(NKTR: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
$19.99 (USD) 03/26/2021

Weighted Valuation
$24.92 (USD)

Overall Rating
Undervalued by 24.7%

Valuation Models Comparables: $24.92 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation
According to Analyst consensus at $25.00 this stock is Undervalued

Company Overview (NKTR:NAS USD)

Price 19.99
Range 19.44 – 20.90
52 week 15.77 – 25.46
Open 20.32
Vol / Avg. 607716/993112
Mkt cap 3.64B
P/E 5.65
Div/yield 0.00/0.00
EPS -2.49
Shares 182.29M
Beta 1.64

Company Description

Nektar Therapeutics is a San Francisco-based emerging biotechnology company specializing in PEGylation technology. Its portfolio includes PEGylated biologics in immuno-oncology, breast cancer, and autoimmune disease. The company partners with several large pharmaceutical and biotechnology companies to co-develop therapies in a range of indications, which includes a collaboration with Bristol-Myers Squibb to develop bempegaldesleukin, the firm’s leading immuno-oncology candidate, in combination with Bristol’s Opdivo.

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 NKTR:NAS

Using a discounted cash flow model we generated an intrinsic value of ($15.69) (USD) for NKTR:NAS

Comparables Model

Using similar companies and price based ratios we generated a valuation of $30.57 (USD) for NKTR:NAS. We also generated a valuation of $24.92 (USD) using other metrics and comparables.
The comparable companies were Reata Pharmaceuticals (RETA:NAS), Apellis Pharmaceuticals (APLS:NAS), Sage Therapeutics (SAGE:NAS), Veracyte (VCYT:NAS) and PTC Therapeutics (PTCT:NAS).

Company NKTR:NAS End Date Value
Earnings/Share ($2.49) (USD)
Book Value/Share $5.91 (USD)
Sales/Share $0.86 (USD)
Cash Flow/Share ($1.75) (USD)
EBITDA/Share ($2.20) (USD)
Price Based on Comps Adjustment Factor (%)
$0.00 (USD) 0.0
$49.31 (USD) 0.0
$9.93 (USD) 19.2
($0.84) (USD) 0.0
$0.00 (USD) 0.0
NKTR:NAS Ratios Used Average Values RETA:NAS APLS:NAS SAGE:NAS VCYT:NAS PTCT:NAS
0.00 PE Ratio 6.45 0.00 0.00 6.45 0.00 0.00
3.38 PB Ratio 8.34 8.47 16.30 2.08 7.69 7.18
23.35 PS Ratio 82.27 364.98 12.44 3.51 21.90 8.53
0.00 PCF Ratio 5.88 0.00 0.00 5.88 0.00 0.00
0.00 EV to EBITDA 3.56 0.00 0.00 3.56 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $48.51 (USD) for NKTR:NAS

Company NKTR:NAS End Date Value
Earnings/Share ($2.49) (USD)
Book Value/Share $5.91 (USD)
Sales/Share $0.86 (USD)
Cash Flow/Share ($1.75) (USD)
EBITDA/Share ($2.20) (USD)
Price Based on Comps Adjustment Factor
$0.00 (USD) 0
$79.37 (USD) 0
$17.65 (USD) 0
$0.00 (USD) 0
$0.00 (USD) 0
Ratios Ratio Average
PE Ratio 9.31
PB Ratio 13.43
PS Ratio 20.61
PCF Ratio 8.94
EV to EBITDA 6.83

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  NKTR:NAS for the last 10 years was  19.22

We ran the Adjusted Book Value for  NKTR:NAS and generated a book value of  $5.98 (USD)
By multiplying these we get an adjusted valuation of  $115.00 (USD)

Analyst Data

In the Stockcalc database there are 2 analysts that provide a valuation for NKTR:NAS. The 2 analysts have a concensus valuation for NKTR:NAS for 2021 of $25.00 (USD).

NKTR:NAS Nektar Therapeutics

No analyst recommendation
Current Price: not available

No analyst consensus

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.

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