Aerie Pharmaceuticals Valuation

AERIDelisted Stock  USD 15.25  0.01  0.07%   
At this time, the firm appears to be overvalued. Aerie Pharmaceuticals shows a prevailing Real Value of $12.92 per share. The current price of the firm is $15.25. Our model approximates the value of Aerie Pharmaceuticals from analyzing the firm fundamentals such as Profit Margin of (0.17) %, current valuation of 918.14 M, and Return On Equity of -22.55 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor purchasing undervalued instruments and trading away overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Overvalued
Today
15.25
Please note that Aerie Pharmaceuticals' price fluctuation is very steady at this time. Calculation of the real value of Aerie Pharmaceuticals is based on 3 months time horizon. Increasing Aerie Pharmaceuticals' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Aerie Pharmaceuticals is useful when determining the fair value of the Aerie stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Aerie Pharmaceuticals. Since Aerie Pharmaceuticals is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Aerie Stock. However, Aerie Pharmaceuticals' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  15.25 Real  12.92 Hype  15.25
The real value of Aerie Stock, also known as its intrinsic value, is the underlying worth of Aerie Pharmaceuticals Company, which is reflected in its stock price. It is based on Aerie Pharmaceuticals' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Aerie Pharmaceuticals' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Aerie Pharmaceuticals' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
12.92
Real Value
16.78
Upside
Estimating the potential upside or downside of Aerie Pharmaceuticals helps investors to forecast how Aerie stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Aerie Pharmaceuticals more accurately as focusing exclusively on Aerie Pharmaceuticals' fundamentals will not take into account other important factors:
Hype
Prediction
LowEstimatedHigh
15.2515.2515.25
Details

Aerie Pharmaceuticals Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Aerie Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Aerie Pharmaceuticals value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Aerie Pharmaceuticals competition to find correlations between indicators driving Aerie Pharmaceuticals's intrinsic value. More Info.
Aerie Pharmaceuticals is number one stock in price to book category among related companies. It is number one stock in price to sales category among related companies fabricating about  0.10  of Price To Sales per Price To Book. The ratio of Price To Book to Price To Sales for Aerie Pharmaceuticals is roughly  9.72 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Aerie Pharmaceuticals by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Aerie Pharmaceuticals' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Aerie Pharmaceuticals' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Aerie Pharmaceuticals' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Aerie Pharmaceuticals and how it compares across the competition.

About Aerie Pharmaceuticals Valuation

The delisted stock valuation mechanism determines the current worth of Aerie Pharmaceuticals on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Aerie Pharmaceuticals. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Aerie Pharmaceuticals based exclusively on its fundamental and basic technical indicators. By analyzing Aerie Pharmaceuticals's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Aerie Pharmaceuticals's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Aerie Pharmaceuticals. We calculate exposure to Aerie Pharmaceuticals's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Aerie Pharmaceuticals's related companies.
Aerie Pharmaceuticals, Inc., a pharmaceutical company, focuses on the discovery, development, and commercialization of ophthalmic therapies for open-angle glaucoma, dry eye, diabetic macular edema, and wet age-related macular degeneration in the United States. Aerie Pharmaceuticals, Inc. was incorporated in 2005 and is headquartered in Durham, North Carolina. Aerie Pharmaceuticals operates under Drug ManufacturersSpecialty Generic classification in the United States and is traded on NASDAQ Exchange. It employs 376 people.

8 Steps to conduct Aerie Pharmaceuticals' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Aerie Pharmaceuticals' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Aerie Pharmaceuticals' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Aerie Pharmaceuticals' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Aerie Pharmaceuticals' revenue streams: Identify Aerie Pharmaceuticals' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Aerie Pharmaceuticals' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Aerie Pharmaceuticals' growth potential: Evaluate Aerie Pharmaceuticals' management, business model, and growth potential.
  • Determine Aerie Pharmaceuticals' financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Aerie Pharmaceuticals' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Aerie Pharmaceuticals Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Aerie Pharmaceuticals does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding46.3 M
Retained Earnings-1.2 B
Retained Earnings Total Equity-1.2 B
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.
You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

Other Consideration for investing in Aerie Stock

If you are still planning to invest in Aerie Pharmaceuticals check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Aerie Pharmaceuticals' history and understand the potential risks before investing.
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