9 Meters Biopharma (9 Meters Biopharma) Intrinsic Value: DCF (Dividends Based) : $ (As of Jun. 09, 2024)

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What is 9 Meters Biopharma Intrinsic Value: DCF (Dividends Based)?

As of today (2024-06-09), 9 Meters Biopharma's intrinsic value calculated from the Discounted Dividend model is $.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

9 Meters Biopharma's Predictability Rank is Not Rated. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for 9 Meters Biopharma is

The historical rank and industry rank for 9 Meters Biopharma's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

NMTRQ's Price-to-DCF (Dividends Based) is not ranked ^*
in the Biotechnology industry.
Industry Median: 2.38
* Ranked among companies with meaningful Price-to-DCF (Dividends Based) only.

9 Meters Biopharma Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for 9 Meters Biopharma's Intrinsic Value: DCF (Dividends Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

9 Meters Biopharma Intrinsic Value: DCF (Dividends Based) Chart

9 Meters Biopharma Annual Data

Trend

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Intrinsic Value: DCF (Dividends Based)

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9 Meters Biopharma Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Intrinsic Value: DCF (Dividends Based)	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of 9 Meters Biopharma's Intrinsic Value: DCF (Dividends Based)

For the Biotechnology subindustry, 9 Meters Biopharma's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

9 Meters Biopharma's Price-to-DCF (Dividends Based) Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, 9 Meters Biopharma's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where 9 Meters Biopharma's Price-to-DCF (Dividends Based) falls into.

9 Meters Biopharma Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.43%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = %
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=>

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

9 Meters Biopharma's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)	=	Dividends per Share	*	{[(1+g1)/(1+d)	+	(1+g1)^2/(1+d)^2	+	...	+	(1+g1)^10/(1+d)^10]
	+	(1+g1)^10/(1+d)^10	*	[(1+g2)/(1+d)	+	(1+g2)^2/(1+d)^2	+	...	+	(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+)/(1+0.11) =
and y = (1+g2)/(1+d) = (1+)/(1+0.11) =

Intrinsic Value: DCF (Dividends Based)

Dividends per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Dividends per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(	-	0.0001)	/

9 Meters Biopharma (OTCPK:NMTRQ) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.

Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

9 Meters Biopharma Intrinsic Value: DCF (Dividends Based) Related Terms

Thank you for viewing the detailed overview of 9 Meters Biopharma's Intrinsic Value: DCF (Dividends Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

9 Meters Biopharma (9 Meters Biopharma) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » 9 Meters Biopharma Inc (OTCPK:NMTRQ) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

N/A

Address

4509 Creedmoor Road, Suite 201, Raleigh, NC, USA, 27612

Website

https://www.9meters.com

9 Meters Biopharma Inc is a clinical-stage biopharmaceutical company focused on rare and unmet needs in gastroenterology. Its pipeline includes drug candidates for short bowel syndrome (SBS), celiac disease, and three early-stage candidates for undisclosed rare diseases and/or unmet needs. Its products include NM-002, Larazotide, NM-003, and others.

Executives

Bethany Sensenig	officer: Chief Financial Officer	C/O 9 METERS BIOPHARMA, INC., 8480 HONEYCUTT ROAD, SUITE 120, RALEIGH NC 27615
John Temperato	director, officer: Chief Executive Officer	C/O MELINTA THERAPEUTICS,INC., 300 GEORGE STREET, SUITE 301, NEW HAVEN CT 06511
Mark A Sirgo	director	C/O BIODELIVERY SCIENCES INTERNATIONAL, 801 CORPORATE CENTER DRIVE -SUITE 210, RALEIGH NC 27607
Michael T. Constantino	director	C/O 9 METERS BIOPHARMA, INC., 8480 HONEYCUTT ROAD, SUITE 120, RALEIGH NC 27615
Samantha Ventimiglia	director	C/O 9 METERS BIOPHARMA, INC., 8480 HONEYCUTT ROAD, SUITE 120, RALEIGH NC 27615
Edward J Sitar	officer: Chief Financial Officer	39 FLAMING ARROW ROAD, MAHWAH NJ 07430
Orbimed Israel Biofund Gp Limited Partnership	10 percent owner	601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 1022-4629
Yehuda Michael Rice	director	155 WALNUT STREET, ENGLEWOOD NJ 07631
Nissim Darvish	director, 10 percent owner	C/O INNOVATE BIOPHARMACEUTICALS, INC., 8480 HONEYCUTT ROAD, SUITE 120, RALEIGH NC 27615
Orbimed Israel Gp Ltd.	10 percent owner	601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022-4629
Sandeep Laumas	director, officer: Executive Chairman	8480 HONEYCUTT RD, SUITE 200, RALEIGH NC 27615
Jay P. Madan	director, officer: President	8480 HONEYCUTT RD, SUITE 200, RALEIGH NC 27615
Roy Proujansky	director	144 PAU NEL DRIVE, LANDENBERG PA 19350
Christopher P. Prior	director, officer: Chief Executive Officer	8480 HONEYCUTT RD, SUITE 200, RALEIGH NC 27615
June Sherie Almenoff	officer: COO and Chief Medical Officer	C/O BRAINSTORM CELL THERAPEUTICS INC., 1325 AVENUE OF AMERICAS 28TH FLOOR, NEW YORK NY 10019