Anacor Pharmaceuticals (Anacor Pharmaceuticals) Intrinsic Value: DCF (FCF Based) : $0.00 (As of Apr. 28, 2024)

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

As of today (2024-04-28), Anacor 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.

Anacor 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 (FCF Based) using Discounted Cash Flow model for Anacor Pharmaceuticals is N/A%.

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

ANAC's Price-to-DCF (FCF Based) is not ranked ^*
in the Biotechnology industry.
Industry Median: 1.85
* Ranked among companies with meaningful Price-to-DCF (FCF Based) only.

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

The historical data trend for Anacor 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.

Anacor Pharmaceuticals Intrinsic Value: DCF (FCF Based) Chart

Anacor Pharmaceuticals Annual Data

Trend

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Dec15

Intrinsic Value: DCF (FCF Based)

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Anacor Pharmaceuticals Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
Intrinsic Value: DCF (FCF Based)	Get a 7-Day Free Trial															-	-	-	-	-

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

For the Biotechnology subindustry, Anacor 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.

Anacor Pharmaceuticals's Price-to-DCF (FCF Based) Distribution in the Biotechnology Industry

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

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

Anacor 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 4.66%. 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 = 5%
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.
=> Anacor Pharmaceuticals's average Free Cash Flow Growth Rate in the past 3 years was 0.00%, 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. 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.

Anacor 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+0.05)/(1+0.11) = 0.94594594594595
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

11.5406

0.00

Margin of Safety (FCF Based)	=	(Intrinsic Value: DCF (FCF Based)	-	Current Price)	/	Intrinsic Value: DCF (FCF Based)
	=	(0	-	9.82)	/	0
	=	N/A %

Anacor Pharmaceuticals (NAS:ANAC) 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.

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

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Anacor Pharmaceuticals (Anacor Pharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Anacor Pharmaceuticals Inc (NAS:ANAC) » Definitions » Intrinsic Value: DCF (FCF Based)

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.anacor.com

Anacor Pharmaceuticals Inc was incorporated in Delaware in December 2000 and began business operations in March 2002. It is a biopharmaceutical company engaged in discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. It has discovered, synthesized and developed eight molecules that are currently in development. The Company's main product candidates include two topically administered dermatologic compounds, tavaborole (formerly referred to as AN2690) and AN2728. Tavaborole is a topical treatment for onychomycosis, a fungal infection of the nail and nail bed. AN2728 is its main topical anti-inflammatory product candidate for the treatment of atopic dermatitis and psoriasis, chronic inflammatory skin diseases that affect millions of people. In addition, the Company has three other wholly-owned clinical product candidates; AN2718 and AN2898, which are backup compounds to tavaborole and AN2728, respectively, and AN3365 (formerly referred to as GSK2251052, or GSK '052), an antibiotic for the treatment of infections caused by Gram-negative bacteria, which previously was licensed to GlaxoSmithKline LLC (GSK). It has also discovered three other compounds that it has out-licensed for further development; one is licensed to Eli Lilly and Company (Lilly), for the treatment of an animal health indication; a second compound, AN5568, also referred to as SCYX-7158, is licensed to Drugs for Neglected Diseases initiative (DNDi), for human African trypanosomiasis (HAT, or sleeping sickness); and a third compound is licensed to GSK for tuberculosis (TB). As of February 1, 2014, the company was the owner of record, either solely or with a collaborator, of 23 issued U.S. patents. The Company and its third-party manufacturers are subject to periodic inspections of facilities by the FDA and other authorities, including procedures and operations used in the testing and manufacture of its products to assess its compliance with applicable regulations.

Executives

Keith R Leonard	director	ARYX THERAPEUTICS,INC., 6300 DUMBARTON CIRCLE, FREMONT CA 94555
William Jl Rieflin	director	NGM BIOPHARMACEUTICALS, INC., 333 OYSTER POINT BLVD., SOUTH SAN FRANCISCO CA 94080
Anders D Hove	director	30 ROCKEFELLER PLAZA, SUITE 5508, NEW YORK NY 10112
Lucy Shapiro	director	10210 GENETIC CENTER COURT, SAN DIEGO CA 92121
Graeme Bell	officer: Executive VP and CFO	1324 WAVERLY ROAD, GLADWYNE PA 19035
Ryan T Sullivan	officer: EVP and General Counsel	C/O WARNER CHILCOTT CORPORATION, 100 ENTERPRISE DRIVE, ROCKAWAY NJ 07855
Wendall Wierenga	director	12790 EL CAMINO REAL, C/O NEUROCRINE BIOSCIENCES, SAN DIEGO CA 92130
Paul L Berns	director, officer: President and CEO	11080 CIRCLEPOINT RD., STE, 200, WESTMINSTER CO 80020
Mark Leschly	director	RHO CAPITAL PARTNERS, INC., 152 W 57TH ST 23RD FL, NEW YORK NY 10019
Geoffrey M. Parker	officer: Executive Vice President & CFO	15 RIORDAN PLACE, MENLO PARK CA 94025
Paul H Klingenstein	director	428 UNIVERSITY AVE, C/O ACCEL PARTNERS, PALO ALTO CA 94301
David P Perry	director, officer: President and CEO	1020 EAST MEADOW CIRCLE, PALO ALTO CA 94303
Rho Management Ventures Iv Llc	10 percent owner	124 DUNE RD, QUOGUE NY 11959
Rho Ventures Iv Qp Lp	10 percent owner	124 DUNE RD, QUOGUE NY 11959
Rho Ventures Iv Lp	10 percent owner	124 DUNE ROAD, QUOGUE NY 11959

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