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Ra Pharmaceuticals (Ra Pharmaceuticals) Earnings Power Value (EPV) : $5.51 (As of Dec19)


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What is Ra Pharmaceuticals Earnings Power Value (EPV)?

As of Dec19, Ra Pharmaceuticals's earnings power value is $5.51. *

* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.

Margin of Safety is N/A.

The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future. Assumption: Current profitability is sustainable.


Ra Pharmaceuticals Earnings Power Value (EPV) Historical Data

The historical data trend for Ra Pharmaceuticals's Earnings Power Value (EPV) 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.

Ra Pharmaceuticals Earnings Power Value (EPV) Chart

Ra Pharmaceuticals Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Earnings Power Value (EPV)
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Ra Pharmaceuticals Quarterly Data
Dec14 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19
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Competitive Comparison of Ra Pharmaceuticals's Earnings Power Value (EPV)

For the Biotechnology subindustry, Ra Pharmaceuticals's Earnings Power Value (EPV), along with its competitors' market caps and Earnings Power Value (EPV) 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.


Ra Pharmaceuticals's Earnings Power Value (EPV) Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Ra Pharmaceuticals's Earnings Power Value (EPV) distribution charts can be found below:

* The bar in red indicates where Ra Pharmaceuticals's Earnings Power Value (EPV) falls into.



Ra Pharmaceuticals Earnings Power Value (EPV) Calculation

Earnings Power Value also known as just Earnings Power is a valuation technique popularised by Bruce Greenwald, an authority on value investing at Columbia University. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future.

The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. This valuation tool excludes the potential growth that a company may have so that needs to be looked at separately. Since future growth is excluded from the analysis, only the maintenance capital expenditures are subtracted from after-tax EBIT (earnings before interest and taxes) and growth capex is ignored.


Ra Pharmaceuticals  (NAS:RARX) Earnings Power Value (EPV) Explanation

Assumption: Current profitability is sustainable.

Earnings power value (EPV) uses a very basic equation which assumes no growth, although it does rely on an assumption about the cost of capital as well as the fact that current earnings are sustainable. It also involves several adjustments to clean up the underlying Earnings figures.


Be Aware

Though using today's earnings in calculating Earnings Power Value, GuruFocus is normalizing these earnings to the business cycle. This eliminates the effects on profitability of valuing the firm at different points in the business cycle. This means that we are considering the average earnings over 5 years.


Ra Pharmaceuticals Earnings Power Value (EPV) Related Terms

Thank you for viewing the detailed overview of Ra Pharmaceuticals's Earnings Power Value (EPV) provided by GuruFocus.com. Please click on the following links to see related term pages.


Ra Pharmaceuticals (Ra Pharmaceuticals) Business Description

Traded in Other Exchanges
N/A
Address
87 Cambridge Park Drive, Cambridge, MA, USA, 02140
Ra Pharmaceuticals Inc is a clinical-stage biopharmaceutical company. It discovers and develops therapeutics for the treatment of diseases caused by excessive or uncontrolled activation of the complement system. Geographically business of the firm can be seen amplifying in the United States, Europe and even at international level.
Executives
Peter Kolchinsky director, 10 percent owner 200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Edward T Mathers director C/O MEDIMMUNE, INC., ONE MEDIMMUNE WAY, GAITHERSBURG MD 20878
Timothy R Pearson director C/O TESARO, INC., 1000 WINTER STREET, SUITE 3300, WALTHAM MA 02451
Aoife Brennan director 200 SIDNEY STREET, SUITE 320, C/O SYNLOGIC, INC., CAMBRIDGE MA 02139
Douglas A Treco director, officer: President and CEO 87 CAMBRIDGEPARK DRIVE, C/O RA PHARMACEUTICALS, INC., CAMBRIDGE MA 02140
Nea Partners 13, Limited Partnership 10 percent owner 1119 ST. PAUL STREET, BALTIMORE MD 21202
Nea 13 Gp, Ltd 10 percent owner 1119 ST. PAUL STREET, BALTIMORE MD 21202
New Enterprise Associates 13 Lp 10 percent owner 1119 ST PAUL STREET, BALTIMORE MD 21202
Rajeev M. Shah director, 10 percent owner 200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Alexander Cumbo director 215 FIRST STREET, SUITE 415, CAMBRIDGE MA 02142
Robert Heft director 87 CAMBRIDGEPARK DRIVE, C/O RA PHARMACEUTICALS, INC., CAMBRIDGE MA 02140
Patrick J Kerins 10 percent owner
Ra Capital Management, L.p. director, 10 percent owner 200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Ra Capital Healthcare Fund Lp director, 10 percent owner 200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
David Charles Lubner officer: Executive VP and CFO C/O TETRAPHASE PHARMACEUTICALS, INC., 480 ARSENAL STREET, SUITE 110, WATERTOWN MA 02472

Ra Pharmaceuticals (Ra Pharmaceuticals) Headlines

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