Equillium Valuation

EQ Stock  USD 1.65  0.04  2.48%   
Based on Macroaxis valuation methodology, the firm appears to be undervalued. Equillium shows a prevailing Real Value of $3.23 per share. The current price of the firm is $1.65. Our model computes the value of Equillium from reviewing the firm fundamentals such as Current Valuation of 16.72 M, shares outstanding of 35.25 M, and Profit Margin of (0.37) % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise buying undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Undervalued
Today
1.65
Please note that Equillium's price fluctuation is dangerous at this time. Calculation of the real value of Equillium is based on 3 months time horizon. Increasing Equillium's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Equillium is useful when determining the fair value of the Equillium stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Equillium. Since Equillium is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Equillium Stock. However, Equillium'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  1.65 Real  3.23 Hype  1.07
The real value of Equillium Stock, also known as its intrinsic value, is the underlying worth of Equillium Company, which is reflected in its stock price. It is based on Equillium's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Equillium'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 Equillium'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.
3.23
Real Value
14.45
Upside
Estimating the potential upside or downside of Equillium helps investors to forecast how Equillium 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 Equillium more accurately as focusing exclusively on Equillium's fundamentals will not take into account other important factors:
Hype
Prediction
LowEstimatedHigh
0.051.0712.29
Details

Equillium Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Equillium's current stock value. Our valuation model uses many indicators to compare Equillium value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Equillium competition to find correlations between indicators driving Equillium's intrinsic value. More Info.
Equillium is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value Equillium by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Equillium'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 Equillium'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 Equillium'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 Equillium and how it compares across the competition.

About Equillium Valuation

The stock valuation mechanism determines the current worth of Equillium on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Equillium. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Equillium based exclusively on its fundamental and basic technical indicators. By analyzing Equillium'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 Equillium'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 Equillium. We calculate exposure to Equillium's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Equillium's related companies.
Equillium, Inc., a clinical-stage biotechnology company, develops and sells products to treat severe autoimmune and inflammatory, or immuno-inflammatory disorders with unmet medical need. Equillium, Inc. was incorporated in 2017 and is headquartered in La Jolla, California. Equillium operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 45 people.

8 Steps to conduct Equillium's Valuation Analysis

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

Equillium 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 Equillium 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 Outstanding34.7 M
Forward Price Earnings3.4364
When determining whether Equillium 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 Equillium 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 Equillium Stock. Highlighted below are key reports to facilitate an investment decision about Equillium Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Equillium. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in producer price index.
To learn how to invest in Equillium Stock, please use our How to Invest in Equillium guide.
You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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Is Equillium'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 Equillium. If investors know Equillium 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 Equillium 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 Equillium is measured differently than its book value, which is the value of Equillium that is recorded on the company's balance sheet. Investors also form their own opinion of Equillium's value that differs from its market value or its book value, called intrinsic value, which is Equillium'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 Equillium's market value can be influenced by many factors that don't directly affect Equillium'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 Equillium's value and its price as these two are different measures arrived at by different means. Investors typically determine if Equillium is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Equillium'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.