Discounted Cash Flow (DCF) Analysis Levered
Reata Pharmaceuticals, Inc. (RETA)
$93.02
+1.89 (+2.07%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 53.59 | 26.52 | 9.02 | 11.49 | 2.22 | 1.28 | 0.73 | 0.42 | 0.24 | 0.14 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -83.78 | -251.15 | -322.34 | -235.70 | -204.27 | -40.67 | -23.40 | -13.47 | -7.75 | -4.46 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -0.68 | -2.67 | -0.93 | -1.33 | -3.27 | -0.46 | -0.27 | -0.15 | -0.09 | -0.05 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -84.46 | -253.82 | -323.27 | -237.03 | -207.54 | -41.13 | -23.67 | -13.62 | -7.84 | -4.51 |
Weighted Average Cost Of Capital
| Share price | $ 93.02 |
|---|---|
| Beta | 1.529 |
| Diluted Shares Outstanding | 36.32 |
| Cost of Debt | |
| Tax Rate | 0.01 |
| After-tax Cost of Debt | 5.00% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.909 |
| Total Debt | 119.46 |
| Total Equity | 3,378.61 |
| Total Capital | 3,498.08 |
| Debt Weighting | 3.42 |
| Equity Weighting | 96.58 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 53.59 | 26.52 | 9.02 | 11.49 | 2.22 | 1.28 | 0.73 | 0.42 | 0.24 | 0.14 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -83.78 | -251.15 | -322.34 | -235.70 | -204.27 | -40.67 | -23.40 | -13.47 | -7.75 | -4.46 |
| Capital Expenditure | -0.68 | -2.67 | -0.93 | -1.33 | -3.27 | -0.46 | -0.27 | -0.15 | -0.09 | -0.05 |
| Free Cash Flow | -84.46 | -253.82 | -323.27 | -237.03 | -207.54 | -41.13 | -23.67 | -13.62 | -7.84 | -4.51 |
| WACC | ||||||||||
| PV LFCF | -37.15 | -19.31 | -10.04 | -5.22 | -2.71 | |||||
| SUM PV LFCF | -74.43 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 10.71 |
| Free cash flow (t + 1) | -4.60 |
| Terminal Value | -52.82 |
| Present Value of Terminal Value | -31.76 |
Intrinsic Value
| Enterprise Value | -106.19 |
|---|---|
| Net Debt | 77.15 |
| Equity Value | -183.34 |
| Shares Outstanding | 36.32 |
| Equity Value Per Share | -5.05 |