HALO
Halozyme Therapeutics, Inc.
$108.31
Platform & Compounding FCF
85%
Two-stage FCF DCF
Mild
·
Conviction
Overvalued
Trading 8.7% above fair value
You pay
$108.31
Bear
$68.46
Fair
$99.61
Bull
$130.58
Bear
$68.46
-36.8%
6% stage 1 growth, 11% discount
Fair
$99.61
-8.0%
10% stage 1 growth, 11% discount
Bull
$130.58
+20.6%
14% stage 1 growth, 11% discount
Adjust Assumptions
10.5%
11.0%
3.0%
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
24.0x
Market is pricing in (growth)
11.4%
vs 10.5% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (27 analysts)
$103.00
Divergence from AlphaVal
3%
Summary
Using a two-stage FCF DCF with 10% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $99.61 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions