Hikma Pharmaceuticals Valuation

HKMPF Stock  USD 23.37  0.47  2.05%   
At this time, the firm appears to be overvalued. Hikma Pharmaceuticals PLC retains a regular Real Value of $20.17 per share. The prevalent price of the firm is $23.37. Our model calculates the value of Hikma Pharmaceuticals PLC from evaluating the firm fundamentals such as Current Valuation of 5.26 B, return on asset of 0.077, and Return On Equity of 0.15 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage locking in undervalued assets and disposing overvalued assets since, at some point, asset prices and their ongoing real values will come together.
Overvalued
Today
23.37
Please note that Hikma Pharmaceuticals' price fluctuation is very steady at this time. Calculation of the real value of Hikma Pharmaceuticals PLC is based on 3 months time horizon. Increasing Hikma Pharmaceuticals' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Hikma Pharmaceuticals PLC is useful when determining the fair value of the Hikma pink sheet, which is usually determined by what a typical buyer is willing to pay for full or partial control of Hikma Pharmaceuticals. Since Hikma Pharmaceuticals is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Hikma Pink Sheet. However, Hikma 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  23.37 Real  20.17 Hype  23.37
The real value of Hikma Pink Sheet, also known as its intrinsic value, is the underlying worth of Hikma Pharmaceuticals PLC Company, which is reflected in its stock price. It is based on Hikma Pharmaceuticals' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Hikma 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 Hikma 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.
20.17
Real Value
25.71
Upside
Estimating the potential upside or downside of Hikma Pharmaceuticals PLC helps investors to forecast how Hikma pink sheet's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Hikma Pharmaceuticals more accurately as focusing exclusively on Hikma Pharmaceuticals' fundamentals will not take into account other important factors:
Hype
Prediction
LowEstimatedHigh
21.6023.3725.14
Details

Hikma Pharmaceuticals Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Hikma Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Hikma Pharmaceuticals value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Hikma Pharmaceuticals competition to find correlations between indicators driving Hikma Pharmaceuticals's intrinsic value. More Info.
Hikma Pharmaceuticals PLC is one of the top stocks in annual yield category among related companies. It is one of the top stocks in price to book category among related companies fabricating about  75.61  of Price To Book per Annual Yield. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Hikma Pharmaceuticals by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hikma Pharmaceuticals' Pink Sheet . 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 Hikma 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 Hikma 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 Hikma Pharmaceuticals and how it compares across the competition.

About Hikma Pharmaceuticals Valuation

The pink sheet valuation mechanism determines the current worth of Hikma Pharmaceuticals PLC on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Hikma Pharmaceuticals PLC. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Hikma Pharmaceuticals PLC based exclusively on its fundamental and basic technical indicators. By analyzing Hikma 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 Hikma 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 Hikma Pharmaceuticals. We calculate exposure to Hikma Pharmaceuticals's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Hikma Pharmaceuticals's related companies.
Hikma Pharmaceuticals PLC develops, manufactures, markets, and sells a range of generic, branded, and in-licensed pharmaceutical products. The company was founded in 1978 and is based in London, the United Kingdom. Hikma Pharmaceutical operates under Drug ManufacturersSpecialty Generic classification in the United States and is traded on OTC Exchange. It employs 8700 people.

8 Steps to conduct Hikma Pharmaceuticals' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Hikma 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 Hikma Pharmaceuticals' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Hikma Pharmaceuticals' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Hikma Pharmaceuticals' revenue streams: Identify Hikma Pharmaceuticals' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Hikma Pharmaceuticals' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Hikma Pharmaceuticals' growth potential: Evaluate Hikma Pharmaceuticals' management, business model, and growth potential.
  • Determine Hikma 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 Hikma 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.
Hikma Pharmaceuticals' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Hikma Pharmaceuticals' value is low or high relative to the company's performance and growth projections. Determining the market value of Hikma Pharmaceuticals can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Hikma Pharmaceuticals represents a small ownership stake in the entity. As a stockholder of Hikma, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Hikma Pharmaceuticals Dividends Analysis For Valuation

Please note that Hikma Pharmaceuticals has scaled down on payment of dividends at this time.
There are various types of dividends Hikma Pharmaceuticals can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Hikma shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Hikma Pharmaceuticals PLC directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Hikma pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Hikma Pharmaceuticals by the value of the dividends paid out.

Hikma 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 Hikma 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 Outstanding231.5 M
Quarterly Earnings Growth Y O Y-0.29
Forward Price Earnings8.9127
Retained Earnings2.2 B
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Hikma Pharmaceuticals PLC. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.
You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

Complementary Tools for Hikma Pink Sheet analysis

When running Hikma Pharmaceuticals' price analysis, check to measure Hikma Pharmaceuticals' 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 Hikma Pharmaceuticals is operating at the current time. Most of Hikma Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Hikma Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hikma Pharmaceuticals' price. Additionally, you may evaluate how the addition of Hikma Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Hikma Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Hikma Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hikma Pharmaceuticals' 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.