GW Pharmaceuticals (GW Pharmaceuticals) Intrinsic Value: DCF (FCF Based) : $0.00 (As of May. 05, 2024)

View and export this data going back to 2013. Start your Free Trial

What is GW Pharmaceuticals Intrinsic Value: DCF (FCF Based)?

As of today (2024-05-05), GW Pharmaceuticals's intrinsic value calculated from the Discounted Cash Flow model is $0.00.

Note: Discounted Cash Flow 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.

GW Pharmaceuticals's Predictability Rank is 1-Star. 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 (FCF Based) using Discounted Cash Flow model for GW Pharmaceuticals is N/A%.

The industry rank for GW Pharmaceuticals's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:

GWPH's Price-to-DCF (FCF Based) is not ranked ^*
in the Drug Manufacturers industry.
Industry Median: 1.57
* Ranked among companies with meaningful Price-to-DCF (FCF Based) only.

GW Pharmaceuticals Intrinsic Value: DCF (FCF Based) Historical Data

The historical data trend for GW Pharmaceuticals's Intrinsic Value: DCF (FCF 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.

GW Pharmaceuticals Intrinsic Value: DCF (FCF Based) Chart

GW Pharmaceuticals Annual Data

Trend

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Dec19

Dec20

Intrinsic Value: DCF (FCF Based)

Get a 7-Day Free Trial

GW Pharmaceuticals Quarterly Data
	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21
Intrinsic Value: DCF (FCF Based)	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of GW Pharmaceuticals's Intrinsic Value: DCF (FCF Based)

For the Drug Manufacturers - General subindustry, GW Pharmaceuticals's Price-to-DCF (FCF Based), along with its competitors' market caps and Price-to-DCF (FCF 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.

GW Pharmaceuticals's Price-to-DCF (FCF Based) Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, GW Pharmaceuticals's Price-to-DCF (FCF Based) distribution charts can be found below:

* The bar in red indicates where GW Pharmaceuticals's Price-to-DCF (FCF Based) falls into.

GW Pharmaceuticals Intrinsic Value: DCF (FCF Based) Calculation

This is the intrinsic value calculated from the Discounted Cash Flow model with default parameters. In a discounted cash flow model, the future cash flow is estimated based on a cash flow growth rate and a discount rate. The cash flow of the future is discounted to its current value at the discount rate. All of the discounted future cash flow is added together to get the current intrinsic value of the company.

Usually a two-stage model is used when calculating a stock's intrinsic value using a discounted cash flow model. The first stage is called the 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 4.03%. 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 = 11.50%
The Growth Rate in the growth stage is initially set as the default 10-Year FCF Growth Rate (Per Share). In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year FCF Growth Rate (Per Share). If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year FCF Growth Rate (Per Share).
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.
=> GW Pharmaceuticals's average Free Cash Flow Growth Rate in the past 5 years was 11.50%, which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 11.50%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. Free Cash Flow per Share: fcf = $0.000.
However, GuruFocus DCF calculator is actually a Discounted Earnings calculator, the 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.

GW Pharmaceuticals's Intrinsic Value: DCF (FCF Based) for today is calculated as

Intrinsic Value: DCF (FCF Based)	=	Free Cash Flow 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+0.115)/(1+0.11) = 1.0045045045045
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (FCF Based)

Free Cash Flow per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Free Cash Flow per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

0.000

17.6899

0.00

Margin of Safety (FCF Based)	=	(Intrinsic Value: DCF (FCF Based)	-	Current Price)	/	Intrinsic Value: DCF (FCF Based)
	=	(0	-	218.96)	/	0
	=	N/A %

GW Pharmaceuticals (NAS:GWPH) Intrinsic Value: DCF (FCF Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value 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 the DCF model:

1. The DCF model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company 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 that have relatively consistent performance.
4. The DCF model works poorly for inconsistent performers such as cyclicals.
5. What discount rate should you use? Your expected return from the investment is a good discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You 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.

GW Pharmaceuticals Intrinsic Value: DCF (FCF Based) Related Terms

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

GW Pharmaceuticals (GW Pharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » GW Pharmaceuticals PLC (NAS:GWPH) » Definitions » Intrinsic Value: DCF (FCF Based)

Comparable Companies

Traded in Other Exchanges

N/A

Address

Sovereign House, Chivers Way, Vision Park, Histon, Cambridge, GBR, CB24 9BZ

Website

http://www.gwpharm.com

GW Pharmaceuticals PLC is a biopharmaceutical company focused on discovering, developing and commercializing novel therapeutics from its proprietary cannabinoid product platform in a broad range of disease areas. The company's lead product candidate is Epidiolex, which is a liquid formulation of pure plant-derived cannabidiol used for the treatment of a number of rare childhood-onset epilepsy disorders. The company also develops and markets Sativex, an oromucosal spray for the treatment of spasticity due to multiple sclerosis. Geographically its presence can be seen across the region of UK, Europe, US, Canada, and others.

Executives

Douglas B. Snyder	officer: Chief Legal Officer	SOVEREIGN HOUSE, VISION PARK, HISTON CAMBRIDGE X0 CB249BZ
Volker Knappertz	officer: Chief Medical Officer	SOVEREIGN HOUSE, VISION PARK, HISTON, CAMBRIDGE X0 CB249BZ
Cabot Brown	director	SOVEREIGN HOUSE, VISION PARK, HISTON CAMBRIDGE X0 CB24 9BZ
Adam D. George	officer: Secretary	SOVEREIGN HOUSE, VISION PARK, HISTON CAMBRIDGE X0 CB24 9BZ
Guy Geoffrey W Dr	director, officer: Executive Chairman	ETHICAL HOLDINGS PLC CORPUS CHRISTI HOUSE 9 WEST STREET GODMANCHESTER CAMBRIDGESHIRE PE18 A1
Christopher J. Tovey	officer: Chief Operating Officer	SOVEREIGN HOUSE, VISION PARK, HISTON, CAMBRIDGE X0 CB24 9BZ
Justin D. Gover	director, officer: Chief Executive Officer	SOVEREIGN HOUSE, VISION PARK, HISTON, CAMBRIDGE X0 CB24 9BZ
David W Gryska	director	749 N MARY AVE, SUNNYVALE CA 94085
James Noble	director	C/O ADAPTIMMUNE THERAPEUTICS PLC, 60 JUBILEE AVE, MILTON PARK, ABINGDON, OXFORDSHIRE X0 OX14 4RX
Alicia Secor	director	33 HAYDEN AVE., LEXINGTON MA 02421
Darren S Cline	officer: U.S. Chief Commercial Officer	35 CAMBRIDGE PARK DRIVE, CAMBRIDGE MA 02140
Catherine J Mackey	director	3595 JOHN HOPKINS COURT, SAN DIEGO CA 92121
William A. Waldegrave	director	SOVEREIGN HOUSE, VISION PARK, HISTON CAMBRIDGE X0 CB24 9BZ
Scott M. Giacobello	officer: Chief Financial Officer	SOVEREIGN HOUSE, VISION PARK, HISTON, CAMBRIDGE X0 CB24 9BZ
Julian S Gangolli	officer: President, North America	4955 BASELINE AVENUE, SANTA YNEZ CA 93460