RPHM has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
RPHM has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
As of today (2024-10-31), Reneo Pharmaceuticals's intrinsic value calculated from the Discounted Earnings model is $-195.04.
Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.
Reneo Pharmaceuticals'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 (Earnings Based) using Discounted Earnings model for Reneo Pharmaceuticals is N/A.
The historical rank and industry rank for Reneo Pharmaceuticals's Intrinsic Value: DCF (Earnings Based) or its related term are showing as below:
The historical data trend for Reneo Pharmaceuticals's Intrinsic Value: DCF (Earnings 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.
Reneo Pharmaceuticals Annual Data | |||||||||||
Trend | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||
Intrinsic Value: DCF (Earnings Based) | - | - | - | - | - |
Reneo Pharmaceuticals Quarterly Data | |||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | |
Intrinsic Value: DCF (Earnings Based) | Get a 7-Day Free Trial | - | - | - | - | - |
For the Biotechnology subindustry, Reneo Pharmaceuticals's Price-to-DCF (Earnings Based), along with its competitors' market caps and Price-to-DCF (Earnings 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.
For the Biotechnology industry and Healthcare sector, Reneo Pharmaceuticals's Price-to-DCF (Earnings Based) distribution charts can be found below:
* The bar in red indicates where Reneo Pharmaceuticals's Price-to-DCF (Earnings Based) falls into.
This is the intrinsic value calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings 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 DCF 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 4.28%. 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. Growth Rate in the growth stage: g1 = 5%
The Growth Rate in the growth stage is initially set as the default 10-Year EPS without NRI Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year EPS without NRI Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year EPS without NRI 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.
=>
Reneo Pharmaceuticals's average EPS without NRI Growth Rate in the past
3 years was -46.30%,
which is less than 5%. GuruFocus defaults => Growth Rate: 5%
3. Years of Growth Stage: y1 = 10
4. Terminal Growth Rate: g2 = 4%
5. Years of Terminal Growth: y2 = 10
6. EPS without NRI: eps without nri = $-16.900.
GuruFocus DCF calculator is actually a Discounted Earnings calculator, EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.
All of the default settings can be changed and the results are calculated automatically.
Reneo Pharmaceuticals's Intrinsic Value: DCF (Earnings Based) for today is calculated as:
Intrinsic Value: DCF (Earnings Based) | = | EPS without NRI | * | {[(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+0.05)/(1+0.11) = 0.94594594594595
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694
Intrinsic Value: DCF (Earnings Based) | = | EPS without NRI | * | {[x | + | x^2 | + | ... | + | x^10] | + | x^10 | * | [y | + | y^2 | + | ... | + | y^10]} |
= | EPS without NRI | * | [x | * | (1-x^10) | / | (1-x) | + | x^10 | * | y | * | (1-y^10) | / | (1-y)] | |||||
= | -16.900 | * | 11.5406 | |||||||||||||||||
= | -195.04 |
Margin of Safety % (DCF Earnings Based) | = | (Intrinsic Value: DCF (Earnings Based) | - | Current Price) | / | Intrinsic Value: DCF (Earnings Based) |
= | (-195.04 | - | 18.20) | / | -195.04 | |
= | N/A |
* 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.
Reneo Pharmaceuticals (NAS:RPHM) Intrinsic Value: DCF (Earnings Based) Explanation
Unlike valuation methods such as Net Current Asset Value, Tangible Book Value per Share, Graham Number, Median Ratio etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.
Be Aware
What you need to know about Discounted Earnings model:
1. The Discounted Earnings model evaluates a company based on its future earnings powerYou can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings 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.
Thank you for viewing the detailed overview of Reneo Pharmaceuticals's Intrinsic Value: DCF (Earnings Based) provided by GuruFocus.com. Please click on the following links to see related term pages.
Ashley Hall | officer: Chief Development Officer | C/O ESPERION THERAPEUTICS INC., 3891 RANCHERO DRIVE SUITE 150, ANN ARBOR MI 48108 |
Novo Holdings A/s | 10 percent owner | TUBORG HAVNEVEJ 19, HELLERUP G7 2900 |
Niall O'donnell | director | C/O RIVERVEST VENTURE PARTNERS, 101 SOUTH HANLEY RD., STE 1850, ST. LOUIS MO 63105 |
Michael Cruse | officer: Senior VP, Corporate Operation | C/O RENEO PHARMACEUTICALS, INC., 12230 EL CAMINO REAL, SUITE 230, SAN DIEGO CA 92130 |
Roshawn A. Blunt | director | 11682 EL CAMINO REAL STE 300, SAN DIEGO CA 92130 |
Jennifer Lam | officer: VP of Finance & Administration | C/O RENEO PHARMACEUTICALS, INC., 18575 JAMBOREE ROAD, SUITE 275-S, IRVINE CA 92612 |
Paul W. Hoelscher | director | 1 HORIZON WAY, C/O HORIZON THERAPEUTICS, INC., DEERFIELD IL 60015 |
Vineet R. Jindal | officer: Chief Financial Officer | C/O RENEO PHARMACEUTICALS, INC., 12230 EL CAMINO REAL, SUITE 230, SAN DIEGO CA 92130 |
Gregory J. Flesher | director, officer: President and CEO | 19900 MACARTHUR BLVD., SUITE 550, IRVINE CA 92612 |
Bali Muralidhar | director | C/O EXICURE, INC., 8045 LAMON AVENUE, SUITE 410, SKOKIE IL 60077 |
Wendy S. Johnson | officer: Chief Development Officer | 800 E. LEIGH STREET, SUITE 209, RICHMOND VA 21219 |
New Enterprise Associates 15, L.p. | 10 percent owner | 1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093 |
Rivervest Venture Fund Iii (ohio), L.p. | 10 percent owner | 11000 CEDAR AVENUE, SUITE 100, CLEVELAND OH 44106-3502 |
Rivervest Venture Fund Iii, L.p. | 10 percent owner | 7733 FORSYTH BOULEVARD, ST. LOUIS MO 63105 |
Stacey Denenberg Seltzer | director | C/O AISLING CAPITAL, 888 SEVENTH AVENUE, 12TH FLOOR, NEW YORK NY 10106 |
From GuruFocus
By Marketwired • 05-13-2024
By GuruFocus Research • 02-08-2024
By Marketwired • 08-13-2024
By PRNewswire • 05-13-2024
By PRNewswire • 06-24-2024
By PRNewswire • 05-13-2024
By Marketwired • 05-07-2024
By Marketwired • 11-02-2023
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.