Merrimack Pharmaceuticals Valuation
| MACK Stock | USD 14.68 0.05 0.34% |
At this time, the firm appears to be overvalued. Merrimack Pharmaceuticals secures a last-minute Real Value of $10.66 per share. The latest price of the firm is $14.68. Our model forecasts the value of Merrimack Pharmaceuticals from analyzing the firm fundamentals such as Shares Owned By Insiders of 1.21 %, return on equity of -0.0622, and Current Valuation of 194.22 M as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend picking up undervalued stocks and discarding overvalued stocks since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Merrimack Pharmaceuticals' valuation include:
Price Book 11.3831 | Enterprise Value 194.2 M | Enterprise Value Ebitda (89.40) |
Overvalued
Today
Please note that Merrimack Pharmaceuticals' price fluctuation is not too volatile at this time. Calculation of the real value of Merrimack Pharmaceuticals is based on 3 months time horizon. Increasing Merrimack Pharmaceuticals' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Merrimack Pharmaceuticals is useful when determining the fair value of the Merrimack stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Merrimack Pharmaceuticals. Since Merrimack Pharmaceuticals is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Merrimack Stock. However, Merrimack 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 14.68 | Real 10.66 | Target 4.0 | Hype 14.67 | Naive 14.39 |
The real value of Merrimack Stock, also known as its intrinsic value, is the underlying worth of Merrimack Pharmaceuticals Company, which is reflected in its stock price. It is based on Merrimack Pharmaceuticals' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Merrimack 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 Merrimack 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.
Estimating the potential upside or downside of Merrimack Pharmaceuticals helps investors to forecast how Merrimack 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 Merrimack Pharmaceuticals more accurately as focusing exclusively on Merrimack Pharmaceuticals' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Merrimack Pharmaceuticals' intrinsic value based on its ongoing forecasts of Merrimack Pharmaceuticals' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Merrimack Pharmaceuticals' closest peers. When choosing an evaluation method for Merrimack Pharmaceuticals, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Merrimack Pharmaceuticals Investments |
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Merrimack Valuation Trend
Knowing Merrimack Pharmaceuticals' actual value is paramount for traders to make sound investment determinations. Merrimack Pharmaceuticals' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Merrimack Pharmaceuticals' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Merrimack Pharmaceuticals' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Merrimack Valuation Data Drivers
Merrimack valuation ratios help to determine how cheap or expensive it is, compared to its peers or based on some benchmark measure of value for a given date. A typical valuation ratio shows the difference between the cost of Merrimack equity instrument and the benefits of owning shares of Merrimack Pharmaceuticals.
View More FundamentalsMerrimack Market Cap
Merrimack Pharmaceuticals is rated below average in market capitalization category among related companies. Market capitalization of Health Care industry is now estimated at about 7.66 Billion. Merrimack Pharmaceuticals holds roughly 213.33 Million in market capitalization claiming about 2.78% of equities under Health Care industry.Merrimack Pharmaceuticals Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Merrimack Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Merrimack Pharmaceuticals value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Merrimack Pharmaceuticals competition to find correlations between indicators driving Merrimack Pharmaceuticals's intrinsic value. More Info.Merrimack Pharmaceuticals is considered to be number one stock in price to earning category among related companies. It is regarded third in price to book category among related companies fabricating about 0.17 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Merrimack Pharmaceuticals is roughly 5.77 . Price To Book Ratio is expected to rise to 10.74 this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Merrimack Pharmaceuticals by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Merrimack 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 Merrimack 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 Merrimack 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 Merrimack Pharmaceuticals and how it compares across the competition.
About Merrimack Pharmaceuticals Valuation
The stock valuation mechanism determines the current worth of Merrimack Pharmaceuticals on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Merrimack Pharmaceuticals. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Merrimack Pharmaceuticals based exclusively on its fundamental and basic technical indicators. By analyzing Merrimack 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 Merrimack 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 Merrimack Pharmaceuticals. We calculate exposure to Merrimack Pharmaceuticals's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Merrimack Pharmaceuticals's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | -511.8 K | -486.2 K | |
| Pretax Profit Margin | (0.96) | (1.01) | |
| Operating Profit Margin | (0.69) | (0.72) | |
| Net Loss | (0.95) | (0.99) | |
| Gross Profit Margin | 0.86 | 0.90 |
8 Steps to conduct Merrimack Pharmaceuticals' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Merrimack 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 Merrimack Pharmaceuticals' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Merrimack Pharmaceuticals' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Merrimack Pharmaceuticals' revenue streams: Identify Merrimack Pharmaceuticals' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Merrimack Pharmaceuticals' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Merrimack Pharmaceuticals' growth potential: Evaluate Merrimack Pharmaceuticals' management, business model, and growth potential.
- Determine Merrimack 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 Merrimack Pharmaceuticals' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Merrimack Pharmaceuticals represents a small ownership stake in the entity. As a stockholder of Merrimack, 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.
Merrimack Pharmaceuticals Dividends Analysis For Valuation
Please note that Merrimack Pharmaceuticals has scaled down on payment of dividends at this time. Price Earnings To Growth Ratio is expected to rise to 6.84 this year, although the value of Retained Earnings will most likely fall to (576.3 M).
There are various types of dividends Merrimack 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 Merrimack 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 Merrimack Pharmaceuticals directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Merrimack pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Merrimack Pharmaceuticals by the value of the dividends paid out.
Merrimack 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 Merrimack 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 Outstanding | 14.3 M |
Merrimack Pharmaceuticals Current Valuation Indicators
Valuation refers to the process of determining the present value of Merrimack Pharmaceuticals and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Merrimack we look at many different elements of the entity such as Merrimack's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Merrimack Pharmaceuticals' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Merrimack Pharmaceuticals' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Merrimack Pharmaceuticals, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Merrimack Pharmaceuticals' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Merrimack Pharmaceuticals' worth.When determining whether Merrimack Pharmaceuticals is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Merrimack Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Merrimack Pharmaceuticals Stock. Highlighted below are key reports to facilitate an investment decision about Merrimack Pharmaceuticals Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Merrimack Pharmaceuticals. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators. For more information on how to buy Merrimack Stock please use our How to buy in Merrimack Stock guide.Note that the Merrimack Pharmaceuticals information on this page should be used as a complementary analysis to other Merrimack Pharmaceuticals' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Complementary Tools for Merrimack Stock analysis
When running Merrimack Pharmaceuticals' price analysis, check to measure Merrimack 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 Merrimack Pharmaceuticals is operating at the current time. Most of Merrimack Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Merrimack Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Merrimack Pharmaceuticals' price. Additionally, you may evaluate how the addition of Merrimack Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.
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Is Merrimack Pharmaceuticals' 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 Merrimack Pharmaceuticals. If investors know Merrimack 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 Merrimack Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.08) | Return On Assets (0.07) | Return On Equity (0.06) |
The market value of Merrimack Pharmaceuticals is measured differently than its book value, which is the value of Merrimack that is recorded on the company's balance sheet. Investors also form their own opinion of Merrimack Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Merrimack Pharmaceuticals' 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 Merrimack Pharmaceuticals' market value can be influenced by many factors that don't directly affect Merrimack Pharmaceuticals' 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 Merrimack Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Merrimack Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merrimack 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.