Lexicon Pharmaceuticals Valuation

LXRX Stock  USD 1.60  0.01  0.62%   
Based on Macroaxis valuation methodology, the firm appears to be undervalued. Lexicon Pharmaceuticals secures a last-minute Real Value of $2.57 per share. The latest price of the firm is $1.6. Our model forecasts the value of Lexicon Pharmaceuticals from analyzing the firm fundamentals such as Operating Margin of (66.58) %, shares outstanding of 246.24 M, and Return On Equity of -1.68 as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
Undervalued
Today
1.60
Please note that Lexicon Pharmaceuticals' price fluctuation is dangerous at this time. Calculation of the real value of Lexicon Pharmaceuticals is based on 3 months time horizon. Increasing Lexicon Pharmaceuticals' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Lexicon Pharmaceuticals is useful when determining the fair value of the Lexicon stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Lexicon Pharmaceuticals. Since Lexicon Pharmaceuticals is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lexicon Stock. However, Lexicon 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  1.6 Real  2.57 Hype  1.59 Naive  1.53
The real value of Lexicon Stock, also known as its intrinsic value, is the underlying worth of Lexicon Pharmaceuticals Company, which is reflected in its stock price. It is based on Lexicon Pharmaceuticals' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Lexicon 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 Lexicon 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.
2.57
Real Value
10.18
Upside
Estimating the potential upside or downside of Lexicon Pharmaceuticals helps investors to forecast how Lexicon 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 Lexicon Pharmaceuticals more accurately as focusing exclusively on Lexicon Pharmaceuticals' fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
1.541.641.74
Details
Hype
Prediction
LowEstimatedHigh
0.081.599.20
Details
Naive
Forecast
LowNext ValueHigh
0.031.539.13
Details

Lexicon Pharmaceuticals Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Lexicon Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Lexicon Pharmaceuticals value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lexicon Pharmaceuticals competition to find correlations between indicators driving Lexicon Pharmaceuticals's intrinsic value. More Info.
Lexicon Pharmaceuticals is currently regarded as number one stock in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about  0.25  of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Lexicon Pharmaceuticals is roughly  4.03 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Lexicon Pharmaceuticals by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lexicon 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 Lexicon 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 Lexicon 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 Lexicon Pharmaceuticals and how it compares across the competition.

About Lexicon Pharmaceuticals Valuation

The stock valuation mechanism determines the current worth of Lexicon Pharmaceuticals on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Lexicon Pharmaceuticals. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lexicon Pharmaceuticals based exclusively on its fundamental and basic technical indicators. By analyzing Lexicon 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 Lexicon 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 Lexicon Pharmaceuticals. We calculate exposure to Lexicon Pharmaceuticals's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lexicon Pharmaceuticals's related companies.
Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of pharmaceutical products. Lexicon Pharmaceuticals, Inc. was incorporated in 1995 and is headquartered in The Woodlands, Texas. Lexicon Pharmaceutcl operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 87 people.

8 Steps to conduct Lexicon Pharmaceuticals' Valuation Analysis

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

Lexicon 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 Lexicon 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 Outstanding221.1 M
Quarterly Earnings Growth Y O Y-0.634
When determining whether Lexicon Pharmaceuticals offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lexicon Pharmaceuticals' 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 Lexicon Pharmaceuticals Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lexicon Pharmaceuticals Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lexicon 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 metropolitan statistical area.
For more information on how to buy Lexicon Stock please use our How to Invest in Lexicon Pharmaceuticals guide.
You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Complementary Tools for Lexicon Stock analysis

When running Lexicon Pharmaceuticals' price analysis, check to measure Lexicon 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 Lexicon Pharmaceuticals is operating at the current time. Most of Lexicon Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Lexicon Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lexicon Pharmaceuticals' price. Additionally, you may evaluate how the addition of Lexicon Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.
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Is Lexicon 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 Lexicon Pharmaceuticals. If investors know Lexicon 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 Lexicon Pharmaceuticals 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 Lexicon Pharmaceuticals is measured differently than its book value, which is the value of Lexicon that is recorded on the company's balance sheet. Investors also form their own opinion of Lexicon Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Lexicon 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 Lexicon Pharmaceuticals' market value can be influenced by many factors that don't directly affect Lexicon 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 Lexicon Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lexicon Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lexicon 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.