Panacea Biotec Limited, a biotechnology company, researches, develops, manufactures, and markets pharmaceuticals, biopharmaceuticals, vaccines, and natural/indigenous products in India.
The last earnings update was 27 days ago.
Discounted Cash Flow Calculation for NSEI:PANACEABIO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
NSEI:PANACEABIO DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Panacea Biotec's share price is below the future cash flow value, and at a moderate discount (> 20%).
Panacea Biotec's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Panacea Biotec's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Panacea Biotec has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Biotechs industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Panacea Biotec's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Panacea Biotec's earnings growth to the India market average as no estimate data is available.
Unable to compare Panacea Biotec's revenue growth to the India market average as no estimate data is available.
Unable to determine if Panacea Biotec is high growth as no earnings estimate data is available.
Unable to determine if Panacea Biotec is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Panacea Biotec's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Did You Miss Panacea Biotec's 100% Share Price Gain?
Because Panacea Biotec is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. … Panacea Biotec actually saw its revenue drop by 6.3% per year over three years.
Is Panacea Biotec Limited's (NSE:PANACEABIO) CEO Paid Enough To Stay Motivated?
First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Sandeep Jain's Compensation Compare With Similar Sized Companies. … Thus we can conclude that Sandeep Jain receives more in total compensation than the median of a group of companies in the same market, and of similar size to Panacea Biotec Limited
Is Panacea Biotec Limited (NSE:PANACEABIO) Excessively Paying Its CEO?
Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability
Who Are The Major Shareholders In Panacea Biotec Limited (NSE:PANACEABIO)?
Private Company Ownership Potential investors in PANACEABIO should also look at another important group of investors: private companies, with a stake of 29.92%, who are primarily invested because of strategic and capital gain interests. … With this size of ownership in PANACEABIO, this ownership class can affect the company's business strategy. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: Institutional ownership level and composition in PANACEABIO is not high nor active enough to significantly impact its investment thesis.
Can Panacea Biotec Limited (NSE:PANACEABIO) Improve Your Portfolio Returns?
A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Based on this beta value, PANACEABIO appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … As a result, this aspect of PANACEABIO indicates a higher beta than a similar size company with a lower portion of fixed assets on their balance sheet.
Who Are The Largest Shareholders In Panacea Biotec Limited (NSE:PANACEABIO)?
See our latest analysis for Panacea Biotec NSEI:PANACEABIO Ownership_summary Feb 9th 18 Institutional Ownership Institutional investors transact in large blocks which can influence the momentum of stock prices, at least in the short-term, especially when there is a low level of public shares available on the market to trade. … NSEI:PANACEABIO Insider_trading Feb 9th 18 General Public Ownership With 4.83% ownership, the general public are a relatively smaller ownership class in PANACEABIO. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: With a low level of institutional ownership, investors in PANACEABIO need not worry about non-fundamental factors such as ownership structure causing large impact on stock prices.
Why You Need To Look At This Factor Before Buying Panacea Biotec Limited (NSE:PANACEABIO)
If you are looking to invest in Panacea Biotec Limited’s (NSEI:PANACEABIO), or currently own the stock, then you need to understand its beta in order to understand how it can affect the risk of your portfolio. … A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Based on this beta value, PANACEABIO appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market.
Have Investors Already Priced In Healthcare Growth For Panacea Biotec Limited (NSE:PANACEABIO)?
Panacea Biotec Limited (NSEI:PANACEABIO), a INR₹13.92B large-cap, operates in the healthcare industry, which continues to be affected by the sustained economic uncertainty and structural trends, such as an aging population, impacting the sector globally. … In this article, I’ll take you through the sector growth expectations, as well as evaluate whether Panacea Biotec is lagging or leading its competitors in the industry. … If your initial investment thesis is around the growth prospects of Panacea Biotec, there are other biotech companies that have delivered higher growth, and perhaps trading at a discount to the industry average.
Panacea Biotec Limited, a biotechnology company, researches, develops, manufactures, and markets pharmaceuticals, biopharmaceuticals, vaccines, and natural/indigenous products in India. The company operates through Vaccines, Formulations, and Research and Development segments. Its product portfolio includes prescription products in various therapeutic areas, including pain management, diabetes and cardiovascular management, oncology, renal disease management, osteoporosis management, anti-tubercular, and gastro-intestinal care products and vaccines. The company also exports its products to approximately 30 countries. Panacea Biotec Limited was founded in 1984 and is based in New Delhi, India.
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