Novan Stock Valuation

NOVN
 Stock
  

USD 2.30  0.03  1.29%   

What is the current enterprise value of Novan Inc? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Novan, is its stock price multiplied by the total number of shares outstanding, calculating Novan's enterprise value requires a different approach. It uses Novan's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Enterprise Value is expected to rise to about 85.5 M this year, although the value of Free Cash Flow will most likely fall to (30.3 M).
Novan Inc secures a last-minute Real Value of $10.71 per share. The latest price of the firm is $2.3. Based on Macroaxis valuation methodology, the firm appears to be undervalued. Our model forecasts the value of Novan Inc from analyzing the firm fundamentals such as Return On Equity of (278.85) %, current valuation of 37.03 M, and Shares Owned by Insiders of 5.75 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend picking up undervalued stocks and discarding overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
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Novan Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Novan's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Novan Most Recent Valuation Data

Price Book
8.36
Price Sales
12.19
EBITDA
-30.2 M
Beta
0.2
Fiscal Year End
December
Industry
Biotechnology
Enterprise Value
34.3 M
Undervalued
Today 2.30
Please note that Novan's price fluctuation is somewhat reliable at this time. Calculation of the real value of Novan Inc is based on 3 months time horizon. Increasing Novan's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Novan Inc is useful when determining the fair value of the Novan stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Novan. Since Novan is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Novan Stock. However, Novan'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.
10.71
Real Value
14.47
Upside
Estimating the potential upside or downside of Novan Inc helps investors to forecast how Novan 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 Novan more accurately as focusing exclusively on Novan's fundamentals will not take into account other important factors:
Earnings
Estimates (5)
LowProjected EPSHigh
-1.77-1.74-1.69
Details
Hype
Prediction
LowEstimated ValueHigh
0.122.406.16
Details
Naive
Forecast
LowNext ValueHigh
0.0472242.366.12
Details
4 Analysts
Consensus
LowTarget PriceHigh
16.0036.0070.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Novan's intrinsic value based on its ongoing forecasts of Novan's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Novan's closest peers. When choosing an evaluation method for Novan Inc, 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.

Novan Valuation Drivers Correlation

Many accounts on the financial statements of Novan Inc are highly interrelated and sometimes correlated. Consequently, when conducting Novan's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Novan
Click cells to compare fundamentals

Novan Valuation Trend

Knowing Novan's actual value is paramount for traders to make sound investment determinations. Novan's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Novan's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Novan's 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.

Novan Market Cap

Novan Inc is considered to be number one stock in market capitalization category among related companies. Market capitalization of Biotechnology industry is now estimated at about 87.68 Million. Novan totals roughly 43.84 Million in market capitalization claiming about 50% of stocks in Biotechnology industry.
Capitalization  Revenue  Valuation  Workforce  Total debt

Novan Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Novan's current stock value. Our valuation model uses many indicators to compare Novan value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Novan competition to find correlations between indicators driving Novan's intrinsic value. More Info.
Novan Inc is considered to be number one stock in beta category among related companies. It is considered to be number one stock in price to book category among related companies . Price to Book Value is expected to rise to 47.95 this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Novan by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Novan'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 Novan'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 Novan'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 Novan and how it compares across the competition.

About Novan Valuation

The equity valuation mechanism determines the current worth of Novan Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Novan Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Novan Inc based exclusively on its fundamental and basic technical indicators. By analyzing Novan'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 Novan'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 Novan. We calculate exposure to Novan's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Novan's related companies.
Last ReportedProjected for 2022
Gross Profit5.7 M5.1 M
Novan, Inc., a pre-commercial nitric oxide-based pharmaceutical company, focuses on dermatology and anti-infective therapies. Novan, Inc. was incorporated in 2006 and is headquartered in Durham, North Carolina. Novan operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 29 people.

Novan Valuation Growth Rates

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 Novan 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.
Quick Ratio4.62
Revenue Growth-38.70%
Enterprise Value To Ebitda-1.26
Enterprise Value To Revenue12.52

Novan Current Valuation Indicators

Valuation refers to the process of determining the present value of Novan Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Novan we look at many different elements of the entity such as Novan's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Novan's 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 Novan's 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 Novan, 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 Novan's 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 Novan's worth.
Additionally, see Stocks Correlation. Note that the Novan Inc information on this page should be used as a complementary analysis to other Novan's 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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When running Novan Inc price analysis, check to measure Novan's 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 Novan is operating at the current time. Most of Novan's value examination focuses on studying past and present price action to predict the probability of Novan's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Novan's price. Additionally, you may evaluate how the addition of Novan to your portfolios can decrease your overall portfolio volatility.
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Is Novan'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 Novan. If investors know Novan 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 Novan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.61
Market Capitalization
49.6 M
Quarterly Revenue Growth YOY
1.35
Return On Assets
-0.24
Return On Equity
-10.14
The market value of Novan Inc is measured differently than its book value, which is the value of Novan that is recorded on the company's balance sheet. Investors also form their own opinion of Novan's value that differs from its market value or its book value, called intrinsic value, which is Novan'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 Novan's market value can be influenced by many factors that don't directly affect Novan'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 Novan's value and its price as these two are different measures arrived at by different means. Investors typically determine Novan value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Novan'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.