What is Savient Pharmaceuticals Free Cash Flow per Share?
Savient Pharmaceuticals's Free Cash Flow per Share for the
three
months ended in Sep. 2013 was €-0.18.
Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2013 was €-0.87.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the FCF Growth Rate using Free Cash Flow per Share data.
The historical rank and industry rank for Savient Pharmaceuticals's Free Cash Flow per Share or its related term are showing as below:
FRA:BY7's 3-Year FCF Growth Rate is not ranked *
in the Biotechnology industry.
Industry Median: 3.85 * Ranked among companies with meaningful 3-Year FCF Growth Rate only.
Savient Pharmaceuticals Free Cash Flow per Share Historical Data
The historical data trend for Savient Pharmaceuticals's Free Cash Flow per Share 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.
Savient Pharmaceuticals Free Cash Flow per Share Chart
Competitive Comparison of Savient Pharmaceuticals's Free Cash Flow per Share
For the Biotechnology subindustry, Savient Pharmaceuticals's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow 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.
Savient Pharmaceuticals's Price-to-Free-Cash-Flow Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Savient Pharmaceuticals's Price-to-Free-Cash-Flow distribution charts can be found below:
* The bar in red indicates where Savient Pharmaceuticals's Price-to-Free-Cash-Flow falls into.
Savient Pharmaceuticals Free Cash Flow per Share Calculation
Free Cashflow per Share is the amount of Free Cashflow per outstanding share of the company's stock.
Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.
Note: GuruFocus does not calculate Free Cash Flow Per Share when Capital Expenditure is 0.
Savient Pharmaceuticals's Free Cash Flow Per Share for the fiscal year that ended in Dec. 2012 is calculated as
Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2013 adds up the quarterly data reported by the company within the most recent 12 months, which was €-0.87
* 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.
Savient Pharmaceuticals (FRA:BY7) Free Cash Flow per Share Explanation
Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.
In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.
This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.
* 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.
Be Aware
Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.
Savient Pharmaceuticals Free Cash Flow per Share Related Terms
Thank you for viewing the detailed overview of Savient Pharmaceuticals's Free Cash Flow per Share provided by GuruFocus.com. Please click on the following links to see related term pages.
Savient Pharmaceuticals (FRA:BY7) Business Description
Savient Pharmaceuticals, Inc., was founded in 1980. It develops, manufactures and markets products through the application of genetic engineering and related biotechnologies. The Company, and its wholly-owned Subsidiaries, is a specialty biopharmaceutical company focused on commercializing KRYSTEXXA (pegloticase) in the United States and completing the development and seeking regulatory approval outside of the United States for KRYSTEXXA, particularly in the European Union. It completed a promotional launch of KRYSTEXXA in the United States during the first quarter of 2011 with its sales force commencing field promotion to health care providers on February 28, 2011. The Company also sells and distributes branded and generic versions of oxandrolone, a drug used to promote weight gain following involuntary weight loss. The Company launched its authorized generic version of oxandrolone in December 2006 in response to the approval and launch of generic competition to Oxandrin. On January 1, 2012, KRYSTEXXA received a permanent J Code, which facilitates reimbursement to providers who treat patients suffering with RCG and who rely on Medicare and Medicaid. The manufacturing process for pegloticase, which is the drug substance of KRYSTEXXA, consists of the production through a recombinant process in which a genetically-engineered bacteria produces uricase, followed by its purification, PEGylation, further purification and formulation to produce the bulk pegloticase, which the company refers it as pegloticase drug substance. Pegloticase is aseptically filtered and filled into sterile, single dose vials to produce the KRYSTEXXA drug product. Its sales force targets rheumatologists and nephrologists with access to infusion centers and healthcare institutions, each of which treat adult patients suffering from RCG, as well as podiatrists who also treat patients with RCG. In March 2012, KRYSTEXXA was made available in the EU to healthcare professionals through a Named Patient Program. The Company sells its products to three drug wholesaler customers and various specialty distributors. Its research and development includes costs associated with the research and development of its KRYSTEXXA product prior to FDA approval and FDA-related post-marketing commitments for approved products (KRYSTEXXA post-approval). These costs mainly include pre-clinical and clinical studies and trials, personnel costs including compensation, consultants and contract research organizations, or CROs, quality control and assurance costs, regulatory costs and costs related to the development of commercial scale manufacturing capabilities for KRYSTEXXA, which also includes the costs of preparing Fujifilm to serve as its secondary source supplier of pegloticase drug substance for KRYSTEXXA in the United States. As of March 7, 2013, the company owned 14 issued U.S. patents and 154 issued foreign patents. It currently owns U.S. and several foreign registrations or applicat
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