HALO
Halozyme Therapeutics, Inc.
$68.32
Platform & Compounding FCF
85%
Two-stage FCF DCF
Mild
·
Conviction
Fair Value
Trading 12.5% below fair value
You pay
$68.32
Bear
$57.84
Fair
$78.07
Bull
$96.99
Bear
$57.84
-15.3%
5% stage 1 growth, 11% discount
Fair
$78.07
+14.3%
8% stage 1 growth, 11% discount
Bull
$96.99
+42.0%
11% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (8% base case)
Terminal Value % of EV
37%
Implied Market Multiple
16.7x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $75.00 from 27 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $78.07 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