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As of today (2024-05-14), Viridian Therapeutics's intrinsic value calculated from the Discounted Cash Flow model is $-108.06.
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.
Viridian Therapeutics'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 Viridian Therapeutics is N/A.
The industry rank for Viridian Therapeutics's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:
The historical data trend for Viridian Therapeutics'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.
Viridian Therapeutics Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Intrinsic Value: DCF (FCF Based) | Get a 7-Day Free Trial | - | - | - | - | - |
Viridian Therapeutics Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Intrinsic Value: DCF (FCF Based) | Get a 7-Day Free Trial | - | - | - | - | - |
For the Biotechnology subindustry, Viridian Therapeutics'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.
For the Biotechnology industry and Healthcare sector, Viridian Therapeutics's Price-to-DCF (FCF Based) distribution charts can be found below:
* The bar in red indicates where Viridian Therapeutics's Price-to-DCF (FCF Based) falls into.
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 4.44%. 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 = 20%
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.
=>
Viridian Therapeutics's average Free Cash Flow Growth Rate in the past
10 years was 36.80%,
which is no less than 20%. GuruFocus defaults => Growth Rate: 20%
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 = $-3.458.
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.
Viridian Therapeutics'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+0.2)/(1+0.11) = 1.0810810810811
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 | + | y^2 | + | ... | + | y^10]} |
= | Free Cash Flow per Share | * | [x | * | (1-x^10) | / | (1-x) | + | x^10 | * | y | * | (1-y^10) | / | (1-y)] | |||||
= | -3.458 | * | 31.2501 | |||||||||||||||||
= | -108.06 |
Margin of Safety (FCF Based) | = | (Intrinsic Value: DCF (FCF Based) | - | Current Price) | / | Intrinsic Value: DCF (FCF Based) |
= | (-108.06 | - | 14.67) | / | -108.06 | |
= | N/A |
* 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.
Viridian Therapeutics (NAS:VRDN) 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 powerYou 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.
Thank you for viewing the detailed overview of Viridian Therapeutics's Intrinsic Value: DCF (FCF Based) provided by GuruFocus.com. Please click on the following links to see related term pages.
Stephen F. Mahoney | director, officer: President and CEO | C/O KINIKSA PHARMACEUTICALS, LTD., CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11 |
Thomas W. Beetham | officer: Chief Operating Officer | C/O KINIKSA PHARMACEUTICALS, LTD., CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11 |
Sarah Gheuens | director | C/O AGIOS PHARMACEUTICALS, INC., 88 SIDNEY STREET, CAMBRIDGE MA 02139 |
Seth Harmon | officer: See Remarks | C/O VIRIDIAN THERAPEUTICS, INC., 221 CRESCENT STREET, SUITE 401, WALTHAM MA 02453 |
Lara Meisner | officer: General Counsel and Secretary | C/O VIRIDIAN THERAPEUTICS, INC., 203 CRESCENT STREET, BLDG. 17, SUITE 102, WALTHAM MA 02453 |
Scott Dunseth Myers | director, officer: Chief Executive Officer | C/O CASCADIAN THERAPEUTICS, INC., 3101 WESTERN AVE., SUITE 600, SEATTLE WA 98121 |
Jonathan Violin | officer: President and COO | 955 CHESTERBROOK BOULEVARD, SUITE 200, CHESTERBROOK PA 19087 |
Barrett Katz | officer: Chief Medical Officer | 6200 LOOKOUT ROAD, C/O MIRAGEN THERAPEUTICS, INC., BOULDER CO 80301 |
Fairmount Healthcare Fund Gp Llc | director, other: See Remarks | 2001 MARKET STREET, SUITE 2500, PHILADELPHIA PA 19103 |
Carrie Melvin | officer: COO | C/O VIRIDIAN THERAPEUTICS, INC., 203 CRESCENT STREET, BLDG 17, SUITE 102B, WALTHAM MA 02453 |
Frazier Life Sciences Public Fund, L.p. | 10 percent owner | TWO UNION SQUARE, 601 UNION ST., SUITE 3200, SEATTLE WA 98101 |
L.p. Fhmlsp, | 10 percent owner | C/O FRAZIER HEALTHCARE PARTNERS, 601 UNION STREET, SUITE 3200, SEATTLE WA 98101 |
Fhmlsp, L.l.c. | 10 percent owner | C/O FRAZIER HEALTHCARE PARTNERS, 601 UNION STREET, SUITE 3200, SEATTLE WA 98101 |
Kristian Humer | officer: CFO and CBO | C/O VIRIDIAN THERAPEUTICS, INC., 6200 LOOKOUT ROAD, BOULDER CO 80301 |
Jennifer K. Moses | director | 79 TW ALEXANDER DRIVE, 4501 RESEARCH COMMONS, SUITE 100, RESEARCH TRIANGLE PARK NC 27709 |
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