Reata Pharmaceuticals Valuation
| RETADelisted Stock | USD 172.36 0.02 0.01% |
At this time, the company appears to be overvalued. Reata Pharmaceuticals holds a recent Real Value of $131.55 per share. The prevailing price of the company is $172.36. Our model determines the value of Reata Pharmaceuticals from analyzing the company fundamentals such as Shares Owned By Insiders of 4.10 %, return on equity of -1.12, and Current Valuation of 6.4 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors support taking in undervalued entities and trading overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
Overvalued
Today
Please note that Reata Pharmaceuticals' price fluctuation is very steady at this time. Calculation of the real value of Reata Pharmaceuticals is based on 3 months time horizon. Increasing Reata Pharmaceuticals' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Reata Pharmaceuticals is useful when determining the fair value of the Reata stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Reata Pharmaceuticals. Since Reata Pharmaceuticals is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Reata Stock. However, Reata 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 172.36 | Real 131.55 | Hype 172.36 | Naive 174.43 |
The real value of Reata Stock, also known as its intrinsic value, is the underlying worth of Reata Pharmaceuticals Company, which is reflected in its stock price. It is based on Reata Pharmaceuticals' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Reata 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 Reata 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 Reata Pharmaceuticals helps investors to forecast how Reata 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 Reata Pharmaceuticals more accurately as focusing exclusively on Reata Pharmaceuticals' fundamentals will not take into account other important factors: Reata Pharmaceuticals Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Reata Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Reata Pharmaceuticals value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Reata Pharmaceuticals competition to find correlations between indicators driving Reata Pharmaceuticals's intrinsic value. More Info.Reata Pharmaceuticals is rated below average in price to earning category among related companies. It is rated second in price to book category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value Reata Pharmaceuticals by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Reata 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 Reata 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 Reata 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 Reata Pharmaceuticals and how it compares across the competition.
About Reata Pharmaceuticals Valuation
The delisted stock valuation mechanism determines the current worth of Reata Pharmaceuticals on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Reata Pharmaceuticals. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Reata Pharmaceuticals based exclusively on its fundamental and basic technical indicators. By analyzing Reata 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 Reata 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 Reata Pharmaceuticals. We calculate exposure to Reata Pharmaceuticals's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Reata Pharmaceuticals's related companies.Reata Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, identifies, develops, and commercializes novel therapeutics for patients with serious or life-threatening diseases. Reata Pharmaceuticals, Inc. was incorporated in 2002 and is headquartered in Plano, Texas. Reata Pharma operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 346 people.
8 Steps to conduct Reata Pharmaceuticals' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Reata 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 Reata Pharmaceuticals' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Reata Pharmaceuticals' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Reata Pharmaceuticals' revenue streams: Identify Reata Pharmaceuticals' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Reata Pharmaceuticals' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Reata Pharmaceuticals' growth potential: Evaluate Reata Pharmaceuticals' management, business model, and growth potential.
- Determine Reata 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 Reata Pharmaceuticals' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Reata 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 Reata 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 | 36.3 M |
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Consideration for investing in Reata Stock
If you are still planning to invest in Reata Pharmaceuticals check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Reata Pharmaceuticals' history and understand the potential risks before investing.
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