Biomarin Pharmaceutical Valuation

BMRN Stock  USD 87.34  1.27  1.43%   
At this time, the firm appears to be overvalued. Biomarin Pharmaceutical shows a prevailing Real Value of $78.29 per share. The current price of the firm is $87.34. Our model approximates the value of Biomarin Pharmaceutical from analyzing the firm fundamentals such as Profit Margin of 0.07 %, return on equity of 0.0351, and Current Valuation of 16.35 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Overvalued
Today
87.34
Please note that Biomarin Pharmaceutical's price fluctuation is very steady at this time. Calculation of the real value of Biomarin Pharmaceutical is based on 3 months time horizon. Increasing Biomarin Pharmaceutical's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Biomarin Pharmaceutical is useful when determining the fair value of the Biomarin stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Biomarin Pharmaceutical. Since Biomarin Pharmaceutical is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Biomarin Stock. However, Biomarin Pharmaceutical's 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  87.34 Real  78.29 Hype  88.55 Naive  91.71
The real value of Biomarin Stock, also known as its intrinsic value, is the underlying worth of Biomarin Pharmaceutical Company, which is reflected in its stock price. It is based on Biomarin Pharmaceutical's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Biomarin Pharmaceutical's 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 Biomarin Pharmaceutical's 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.
78.29
Real Value
97.47
Upside
Estimating the potential upside or downside of Biomarin Pharmaceutical helps investors to forecast how Biomarin 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 Biomarin Pharmaceutical more accurately as focusing exclusively on Biomarin Pharmaceutical's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
85.9187.6289.34
Details
Hype
Prediction
LowEstimatedHigh
87.2188.5589.89
Details
Naive
Forecast
LowNext ValueHigh
90.3691.7193.05
Details

Biomarin Pharmaceutical Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Biomarin Pharmaceutical's current stock value. Our valuation model uses many indicators to compare Biomarin Pharmaceutical value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Biomarin Pharmaceutical competition to find correlations between indicators driving Biomarin Pharmaceutical's intrinsic value. More Info.
Biomarin Pharmaceutical is number one stock in price to sales category among related companies. It is number one stock in price to book category among related companies fabricating about  0.49  of Price To Book per Price To Sales. The ratio of Price To Sales to Price To Book for Biomarin Pharmaceutical is roughly  2.05 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Biomarin Pharmaceutical by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Biomarin Pharmaceutical's 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 Biomarin Pharmaceutical's 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 Biomarin Pharmaceutical's 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 Biomarin Pharmaceutical and how it compares across the competition.

About Biomarin Pharmaceutical Valuation

The stock valuation mechanism determines the current worth of Biomarin Pharmaceutical on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Biomarin Pharmaceutical. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Biomarin Pharmaceutical based exclusively on its fundamental and basic technical indicators. By analyzing Biomarin Pharmaceutical'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 Biomarin Pharmaceutical'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 Biomarin Pharmaceutical. We calculate exposure to Biomarin Pharmaceutical's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Biomarin Pharmaceutical's related companies.
BioMarin Pharmaceutical Inc. develops and commercializes therapies for people with serious and life-threatening rare diseases and medical conditions. The company was incorporated in 1996 and is headquartered in San Rafael, California. Biomarin Pharmaceuticals operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 3045 people.

8 Steps to conduct Biomarin Pharmaceutical's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Biomarin Pharmaceutical's 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 Biomarin Pharmaceutical's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Biomarin Pharmaceutical's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Biomarin Pharmaceutical's revenue streams: Identify Biomarin Pharmaceutical's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Biomarin Pharmaceutical's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Biomarin Pharmaceutical's growth potential: Evaluate Biomarin Pharmaceutical's management, business model, and growth potential.
  • Determine Biomarin Pharmaceutical's 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 Biomarin Pharmaceutical's 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.

Biomarin Pharmaceutical 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 Biomarin Pharmaceutical 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 Outstanding191.6 M
Quarterly Earnings Growth Y O Y0.98
Forward Price Earnings32.2581
When determining whether Biomarin Pharmaceutical offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Biomarin Pharmaceutical's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Biomarin Pharmaceutical Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Biomarin Pharmaceutical Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Biomarin Pharmaceutical. 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.
To learn how to invest in Biomarin Stock, please use our How to Invest in Biomarin Pharmaceutical guide.
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When running Biomarin Pharmaceutical's price analysis, check to measure Biomarin Pharmaceutical's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Biomarin Pharmaceutical is operating at the current time. Most of Biomarin Pharmaceutical's value examination focuses on studying past and present price action to predict the probability of Biomarin Pharmaceutical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Biomarin Pharmaceutical's price. Additionally, you may evaluate how the addition of Biomarin Pharmaceutical to your portfolios can decrease your overall portfolio volatility.
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Is Biomarin Pharmaceutical's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Biomarin Pharmaceutical. If investors know Biomarin will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Biomarin Pharmaceutical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Biomarin Pharmaceutical is measured differently than its book value, which is the value of Biomarin that is recorded on the company's balance sheet. Investors also form their own opinion of Biomarin Pharmaceutical's value that differs from its market value or its book value, called intrinsic value, which is Biomarin Pharmaceutical's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Biomarin Pharmaceutical's market value can be influenced by many factors that don't directly affect Biomarin Pharmaceutical's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Biomarin Pharmaceutical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Biomarin Pharmaceutical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Biomarin Pharmaceutical's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.