La Jolla Pharmaceutical Company

NasdaqCM:LJPC Stock Report

Mkt Cap: US$155.1m

We’ve recently updated our valuation analysis.

La Jolla Pharmaceutical Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

LJPC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.1x
Enterprise Value/EBITDA-304.6x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does LJPC's PE Ratio compare to its peers?

The above table shows the PE ratio for LJPC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24x
XOMA XOMA
26.3x54.4%US$257.6m
CMRX Chimerix
1x-37.5%US$157.6m
CGEM Cullinan Oncology
3.9x-54.5%US$412.1m
ORGO Organogenesis Holdings
5.6x15.0%US$335.1m
LJPC La Jolla Pharmaceutical
39.1x59.0%US$155.1m

Price-To-Earnings vs Peers: LJPC is expensive based on its Price-To-Earnings Ratio (39.1x) compared to the peer average (24x).


Price to Earnings Ratio vs Industry

How does LJPC's PE Ratio compare vs other companies in the US Biotechs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.0%
n/an/an/a

Price-To-Earnings vs Industry: LJPC is expensive based on its Price-To-Earnings Ratio (39.1x) compared to the US Biotechs industry average (14.7x)


Price to Earnings Ratio vs Fair Ratio

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

LJPC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.1x
Fair PE Ratio42.1x

Price-To-Earnings vs Fair Ratio: LJPC is good value based on its Price-To-Earnings Ratio (39.1x) compared to the estimated Fair Price-To-Earnings Ratio (42.1x).


Share Price vs Fair Value

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

Below Fair Value: LJPC ($6.22) is trading below our estimate of fair value ($29.08)

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


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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