United Therapeutics currently holds 800
M in liabilities with Debt to Equity (D/E) ratio of 0.27, which may suggest United Therapeutics is not taking enough advantage from borrowing. The entity has a current ratio of 8.73, suggesting that it is liquid enough and is able to pay its financial obligations when due. United Therapeutics is UNDERVALUED at 131.31 per share with modest projections ahead.
We determine the current worth of United Therapeutics using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of United Therapeutics based exclusively on its
fundamental and basic
technical indicators. By analyzing United Therapeutics's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of United Therapeutics'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 United Therapeutics. We calculate exposure to United Therapeutics's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to United Therapeutics's related companies.
United Therapeutics Investment Alerts
United investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring United Therapeutics performance across your portfolios.Please check all
investment alerts for United
United Therapeutics Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare United value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across United Therapeutics competition to find
correlations between indicators driving the intrinsic value of United.
United Therapeutics Gross Profit
United Therapeutics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing United Therapeutics previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show United Therapeutics Gross Profit growth over the last 10 years. Please check United Therapeutics'
gross profit and other
fundamental indicators for more details.
What is the case for United Therapeutics Investors
The latest indifference towards the small price fluctuations of United Therapeutics created some momentum for retail investors as it was traded today as low as
112.93 and as high as
114.59 per share. The company directors and management did not add any value to United Therapeutics investors in
June. However, most investors can still diversify their portfolios with United Therapeutics to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.81. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
| 2015 | 2016 | 2019 | 2020 (projected) |
Interest Expense | 4.7 M | 3.9 M | 3.51 M | 3.6 M | Gross Profit | 1.4 B | 1.53 B | 1.37 B | 1.48 B |
Margins Breakdown
United profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or United Therapeutics itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of United Therapeutics profit margins.
| Operating Margin | (13.289401) |
| EBITDA Margin | (8.451096) |
| Gross Margin | 86.49 |
| Profit Margin | (7.402678) |
United Therapeutics Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment. Also, United Therapeutics Revenue Per Employee is increasing over the last 8 years. The previous year's value of United Therapeutics Revenue Per Employee was 1,545,638.
How will United retail investors react to the next slump?
Latest Risk Adjusted Performance is up to 0.04. Price may slump again. United Therapeutics has relatively low volatility with skewness of -0.47 and kurtosis of 0.19. However, we advise all investors to independently investigate United Therapeutics to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.
Our Final Take On United Therapeutics
While few other entities within the biotechnology industry are still a little expensive, even after the recent corrections, United Therapeutics may offer a potential longer-term growth to retail investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither purchase nor short any shares of United Therapeutics at this time. The United Therapeutics risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to United Therapeutics.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of United Therapeutics. Please refer to our
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