Discounted Cash Flow Calculation for NasdaqGM:ETON 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.
NasdaqGM:ETON 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.
Eton Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).
Eton Pharmaceuticals'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
Eton Pharmaceuticals's earnings available for a low price, and how does
this compare to other companies in the same industry?
Eton Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.
Eton Pharmaceuticals's revenue is expected to grow significantly at over 20% yearly.
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.
Eton Pharmaceuticals'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
Eton Pharmaceuticals's finances.
The net worth of a company is the difference between its assets and liabilities.
Eton Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Eton Pharmaceuticals's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Eton Pharmaceuticals'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 covered by short term assets, assets are 3.3x 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
Mr. Sean E. Brynjelsen has been the Chief Executive Officer at Eton Pharmaceuticals, Inc. since June 23, 2017 and serves as President and Director since June 2017. Mr. Brynjelsen served as Executive Vice President of Business Development at Sagent Pharmaceuticals, Inc. since April 04, 2016. Mr. Brynjelsen served as Senior Vice President of Global Business Development at Akorn, Inc. since June 2014. Mr. Brynjelsen served as Vice President of New Business Development at Akorn, Inc. until June 2014. Previously, Mr. Brynjelsen served as Vice President of New Business Development and R&D of Akorn Inc. Mr. Brynjelsen has extensive experience in pharmaceutical transactions, strategic planning and product licensing/development, which makes him a great addition to executive leadership team. Mr. Brynjelsen has over 20 years of transactional experience in the pharmaceutical industry with companies including Akorn, Hospira and Baxter. Mr. Brynjelsen’s background included pharmaceutical development, due diligence, project management and strategic planning. Mr. Brynjelsen joined Akorn in April 2007 as Director of New Business Development. In December, 2007 he took on the additional responsibility as head of Contract Manufacturing. Prior to joining Akorn, Mr. Brynjelsen held progressively responsible positions within R & D and Program Management at Hospira International and Baxter Healthcare Corporation. Mr. Brynjelsen holds a BS in Biochemistry and MS in Chemistry from the University of Illinois and an MBA from the University of Notre Dame.
Sean's compensation has been consistent with company performance over the past year, both up more than 20%.
Sean's remuneration is about average for companies of similar size in United States of America.
CFO, Treasurer & Secretary
Vice President of Sales & Marketing
Senior Vice President of Regulatory Affairs & Product Development
Vice President of Business Development
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Eton Pharmaceuticals board of directors is less than 3 years, this suggests a new board.
Board of Directors
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
What Kind Of Shareholder Appears On The Eton Pharmaceuticals, Inc.'s (NASDAQ:ETON) Shareholder Register?
With a market capitalization of US$123m, Eton Pharmaceuticals is a small cap stock, so it might not be well known by many institutional investors. … General Public Ownership The general public, who are mostly retail investors, collectively hold 53% of Eton Pharmaceuticals shares. … Public Company Ownership Public companies currently own 20% of ETON stock.
Who Has Been Buying Eton Pharmaceuticals, Inc. (NASDAQ:ETON) Shares?
So shareholders might well want to know whether insiders have been buying or selling shares in Eton Pharmaceuticals, Inc. … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' Check out our latest analysis for Eton Pharmaceuticals Eton Pharmaceuticals Insider Transactions Over The Last Year Director Mark Baum made the biggest insider purchase in the last 12 months. … In the last twelve months Eton Pharmaceuticals insiders were buying shares, but not selling.
Eton Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing and commercializing pharmaceutical products. The company offers Biorphen, a phenylephrine hydrochloride injection for the treatment of clinically important hypotension resulting primarily from vasodilation in the setting of anesthesia. It also develops EM-100, an ophthalmic product for the treatment of allergic conjunctivitis; ET-203, which is injectable product candidates for use in the hospital setting; ET-103, an oral liquid product candidate for hypothyroidism; ET-101 and ET-104, which are oral liquid product candidates for neurological indications; DS-300 and DS-100, which are injectable product candidates; and ET-105, a lamotrigine for oral suspension. Eton Pharmaceuticals, Inc. was founded in 2017 and is based in Deer Park, Illinois.
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