HOOKIPA Pharma (HOOKIPA Pharma) Intrinsic Value: DCF (FCF Based) : $-18.97 (As of Apr. 30, 2024)

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HOOKIPA Pharma Intrinsic Value: DCF (FCF Based) Chart

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Competitive Comparison of HOOKIPA Pharma's Intrinsic Value: DCF (FCF Based)

For the Biotechnology subindustry, HOOKIPA Pharma'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.

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HOOKIPA Pharma's Price-to-DCF (FCF Based) Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, HOOKIPA Pharma's Price-to-DCF (FCF Based) distribution charts can be found below:

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

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HOOKIPA Pharma 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 4.66%. 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 = 19.40%
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.
=> HOOKIPA Pharma's average Free Cash Flow Growth Rate in the past 5 years was 19.40%, which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 19.40%

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 = $-0.632.
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.

HOOKIPA Pharma's Intrinsic Value: DCF (FCF Based) for today is calculated as

set x = (1+g1)/(1+d) = (1+0.194)/(1+0.11) = 1.0756756756757
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

* 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.

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HOOKIPA Pharma  (NAS:HOOK) 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.

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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.

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HOOKIPA Pharma Intrinsic Value: DCF (FCF Based) Related Terms

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

Predictability Rank Intrinsic Value: DCF (Earnings Based) Intrinsic Value: DCF (Dividends Based) Intrinsic Value: Projected FCF Free Cash Flow Free Cash Flow per Share Margin of Safety % (DCF FCF Based) Margin of Safety % (DCF Earnings Based) Margin of Safety % (DCF Dividends Based)

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HOOKIPA Pharma (HOOKIPA Pharma) Business Description

Executives

Reinhard Kandera	director, officer: Chief Financial Officer	C/O HOOKIPA PHARMA INC., 430 EAST 29TH ST., 14TH FLOOR, NEW YORK NY 10016
Jorn Aldag	director, officer: Chief Executive Officer	C/O UNUM THERAPEUTICS INC., 200 CAMBRIDGE PARK DRIVE SUITE 3100, CAMBRIDGE MA 02210
Mary Theresa Coelho	director	52 SUNRISE PARK ROAD, NEW HAMPTON NY 43017
Katia Schlienger	officer: Chief Medical Officer	350 FIFTH AVENUE, 72ND FLOOR, SUITE 7240, NEW YORK NY 10118
Malte Peters	director	TANGO THERAPEUTICS, INC., 100 BINNEY STREET, UNIT 700, CAMBRIDGE MA 02142
Timothy P. Reilly	director	C/O HOOKIPA PHARMA INC., 350 FIFTH AVENUE, 72ND FLOOR, SUITE 7240, NEW YORK NY 10018
Gilead Sciences Inc	10 percent owner	333 LAKESIDE DR, FOSTER CITY CA 94404
Igor Matushansky	officer: Chief Medical Officer	C/O HOOKIPA PHARMA INC., 430 EAST 29TH STREET, NEW YORK NY 10016
Sofinnova Capital Vi Fcpr	10 percent owner	C/O SOFINNOVA PARTNERS, 17 RUE DE SURENE, PARIS XX 75008
Christine D. Baker	officer: Chief Business Officer	C/O HOOKIPA PHARMA INC., 350 FIFTH AVENUE, 72ND FLOOR, SUITE 7240, NEW YORK NY 10118
Jean-charles Soria	director	C/O HOOKIPA PHARMA INC., 350 FIFTH AVENUE SUITE 7240, NEW YORK NY 10118
Anders Lilja	officer: Sr. VP, Technical Development	C/O HOOKIPA PHARMA INC., 430 EAST 29TH ST., 14TH FLOOR, NEW YORK NY 10016
Klaus Orlinger	officer: Sr. VP, Research	C/O HOOKIPA PHARMA INC., 430 EAST 29TH STREET, 14TH FLOOR, NEW YORK NY 10016
Roman Necina	officer: Chief Technology Officer	C/O HOOKIPA PHARMA INC., 350 FIFTH AVENUE, 72ND FLOOR, SUITE 7240, NEW YORK NY 10118
Forbion Capital Fund Ii Cooperatief U.a.	10 percent owner	C/O HOOKIPA PHARMA INC., 430 EAST 29TH STREET, 14TH FLOOR, NEW YORK NY 10016