Intercept Pharmaceuticals, Inc.

DB:I4P Stock Report

Market Cap: €742.1m

Intercept Pharmaceuticals Valuation

Is I4P undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of I4P when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: I4P (€17.52) is trading below our estimate of fair value (€40.04)

Significantly Below Fair Value: I4P is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for I4P?

Key metric: As I4P is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for I4P. This is calculated by dividing I4P's market cap by their current revenue.
What is I4P's PS Ratio?
PS Ratio2.5x
SalesUS$317.68m
Market CapUS$794.69m

Price to Sales Ratio vs Peers

How does I4P's PS Ratio compare to its peers?

The above table shows the PS ratio for I4P vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8.9x
FYB Formycon
13.6x33.4%€827.2m
BIO3 Biotest
1.5x3.6%€1.4b
HPHA Heidelberg Pharma
12.3x16.6%€103.9m
2INV 2invest
8.2xn/a€63.8m
I4P Intercept Pharmaceuticals
2.5x2.3%€794.7m

Price-To-Sales vs Peers: I4P is good value based on its Price-To-Sales Ratio (2.5x) compared to the peer average (8.4x).

Price to Sales Ratio vs Industry

How does I4P's PS Ratio compare vs other companies in the DE Biotechs Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
CNW co.don
0.7xn/aUS$6.97m
V9Z Aceragen
0.4xn/aUS$3.12m
PA8 Paion
0.2x30.2%US$2.78m
V9Z Aceragen
0.3x-161.8%US$2.18m
I4P 2.5xIndustry Avg. 8.1xNo. of Companies6PS0612182430+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: I4P is good value based on its Price-To-Sales Ratio (2.5x) compared to the European Biotechs industry average (8.1x).

Price to Sales Ratio vs Fair Ratio

What is I4P's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

I4P PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.5x
Fair PS Ratio3.3x

Price-To-Sales vs Fair Ratio: I4P is good value based on its Price-To-Sales Ratio (2.5x) compared to the estimated Fair Price-To-Sales Ratio (3.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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