Discounted Cash Flow Calculation for CNSX:CURE 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.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
CNSX:CURE 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.
Biocure Technology's share price is below the future cash flow value, and at a moderate discount (> 20%).
Biocure Technology'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
Biocure Technology'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 Biocure Technology 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 Biocure Technology's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Biocure Technology's earnings growth to the Canada market average as no estimate data is available.
Unable to compare Biocure Technology's revenue growth to the Canada market average as no estimate data is available.
Unable to determine if Biocure Technology is high growth as no earnings estimate data is available.
Unable to determine if Biocure Technology 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.
Biocure Technology'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
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Biocure Technology's finances.
The net worth of a company is the difference between its assets and liabilities.
Biocure Technology's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Biocure Technology's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Biocure Technology's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is not covered by short term assets, assets are 0.2x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Dr. Sang-Mok Lee serves as President and Chief Executive Officer of Biocurepharm, Inc. since November 24, 2017. Dr. Lee has been the President and Chief Executive Officer of the Biocurepharm Corporation in Korea, since its inception in 2005. He has been Director of Biocurepharm, Inc. since June 21, 2017. Dr. Lee has been a Director of Gravis Energy Corp. since June 21, 2017. He is an adjunct professor in microbiology at Chungnam National University. Dr. Lee is a committee member for the hi-tech medical complex city in Daejeon, Korea and a committee member of KOFST (the Korean Federation of Science and Technology Societies). Dr. Lee holds a PhD in microbiology from Busan National University in Korea.
Insufficient data for Sang to compare compensation growth.
Sang's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Biocure Technology management team is about average.
CFO, Corporate Secretary & Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Biocure Technology board of directors is less than 3 years, this suggests a new board.
Board of Directors
CFO, Corporate Secretary & Director
Member of Advisory Board
Member of Advisory Board
Member of Advisory Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Did Changing Sentiment Drive Biocure Technology's (CNSX:CURE) Share Price Down A Worrying 63%?
Biocure Technology may have better days ahead, of course; we've only looked at a one year period. … View our latest analysis for Biocure Technology We don't think Biocure Technology's revenue of CA$69,287 is enough to establish significant demand. … But since the share price has dived -63% in the last year, it looks like some investors think it's time to abandon ship, so to speak.
How Much Of Biocure Technology Inc. (CNSX:CURE) Do Insiders Own?
The big shareholder groups in Biocure Technology Inc. … With a market capitalization of CA$47m, Biocure Technology is a small cap stock, so it might not be well known by many institutional investors. … See our latest analysis for Biocure Technology
Should You Be Concerned About Biocure Technology Inc's (CNSX:CURE) Investors?
I am going to take a deep dive into Biocure Technology Inc’s (CNSX:CURE) most recent ownership structure, not a frequent subject of discussion among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.
Biocure Technology Inc. develops and commercializes biopharmaceutical technologies for uses in recombinant and ranibizumab in South Korea. The company is developing Interferons- ß for the treatment of multiple sclerosis; Ranibizumab, a monoclonal antibody fragment for the treatment of macular degeneration, as well as to treat a type of eye problem known as macular edema; and Filgrastim to treat neutropenia, a lack of white blood cells caused by cancer, bone marrow transplant, chemotherapy, or by other conditions. It is also developing CAR T Cell Therapy that identifies and destroys cancer cells; a foot and mouth disease vaccine; a hair growth production product; and a breast cancer detection kit. Biocure Technology Inc. is headquartered in Vancouver, Canada.
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