Akari Therapeutics, Plc, a clinical-stage biopharmaceutical company, focuses on the development and commercialization of treatments for a range of rare and orphan autoimmune and inflammatory diseases.
The last earnings update was 5 days ago.
Discounted Cash Flow Calculation for DB:CLAB 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.
DB:CLAB 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.
Akari Therapeutics's share price is below the future cash flow value, and at a moderate discount (> 20%).
Akari Therapeutics'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
Akari Therapeutics's earnings available for a low price, and how does
this compare to other companies in the same industry?
Akari Therapeutics's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Akari Therapeutics 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.
Akari Therapeutics'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
Akari Therapeutics's finances.
The net worth of a company is the difference between its assets and liabilities.
Akari Therapeutics's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Akari Therapeutics has no long term commitments.
This treemap shows a more detailed breakdown of
Akari Therapeutics'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.
Akari Therapeutics has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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
Mr. Clive Richardson serves as the Chief Executive Officer of Akari Therapeutics, Plc since 2019. Mr. Richardson has been the Chief Operations Officer and Director of Akari Therapeutics, Plc since September 16, 2015 and 2015 respectively and served as its Interim Chief Executive Officer since May 8, 2018 until 2019. Mr. Richardson serves as the Head of Operations for Volution. He served as Consultant to Varleigh Immuno Pharmaceuticals since inception in 2008. Prior to working for Volution and Varleigh, he served as a Member of the Board of Directors for a range of international healthcare companies, including CIS Healthcare Ltd. and Clinisys Ltd. He served as the Head of Equities Research for Investec Bank and worked as a Strategy Consultant for L.E.K. Consulting. Mr. Richardson holds an M.A. in Zoology from Trinity College, Oxford University.
Clive's compensation has increased whilst company is loss making.
Clive's remuneration is higher than average for companies of similar size in Germany.
COO, CEO & Director
Chief Scientific Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Akari Therapeutics board of directors is about average.
Board of Directors
COO, CEO & Director
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by Akari Therapeutics individual insiders in the past 3 months.
Akari Therapeutics, Plc, a clinical-stage biopharmaceutical company, focuses on the development and commercialization of treatments for a range of rare and orphan autoimmune and inflammatory diseases. Its lead product candidate is Coversin, a second-generation complement inhibitor that is in Phase II clinical trial for the treatment of autoimmune and inflammatory diseases, including paroxysmal nocturnal hemoglobinuria, guillain barré syndrome, and atypical hemolytic uremic syndrome. Akari Therapeutics, Plc is based in London, the United Kingdom.
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