* Note: Prices are in Million (M) USD.
Description:
Esperion Therapeutics, Inc. is a biopharmaceutical company focused on delivering innovative therapies for patients with elevated low-density lipoprotein cholesterol (LDL-C). Headquartered in Ann Arbor, Michigan, Esperion is committed to transforming the treatment landscape for cardiovascular disease by developing and commercializing novel lipid-lowering agents. With a robust pipeline and a strong emphasis on patient-centered solutions, the company is well-positioned to play a significant role in the management of dyslipidemia.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $86 M
Debt : $298 M
EBITDA : $-25 M
Net Debt (Debt - Cash): $212 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Health care
Industry: Drug manufacturers - specialty & generic
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 180.89
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 18 overlapping fiscal years (max 20).Average Free Cash Flow: $-71 M
Average Revenue: $341 M
Revenue Converted To Free Cash Flow (%): -21.0%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $332 M
Revenue 5 Years Ago (2019-12-31): $148 M
Total Growth over 5 Years: 124.0%
5-Year Revenue CAGR (Historical): 17.5%
Forward 5-Year CAGR (Tapered): 12.3%
Since historical Revenue CAGR is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $187 M
Share Count 5 Years Ago (2020-12-31): $27 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.01
Trailing 12-Month Earnings Per Share (EPS): $0.02
Average Earnings Per Share (EPS): $0.02
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.01
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 9 valid ROE years (max 20).Average ROE: -79.1%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $2.84
52-Week Low: $0.69
Threshold Price (15% Above 52-Week Low): $0.80
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $665 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on high P/E, we recommend do not exceed 0.20% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 8 points to above Esperion Therapeutics Inc (ESPR) stock.
Fair Value PE
9, Industry Based PE
15, Growth Based PE
15, Risk-Free Anchored PE (25% MoS)
18.2. Based on these 4 values, average assigned is
14.30. Value-Trades has assined P/E value
14.01. An average (Current Year EPS + Next Year EPS) earning per share is
$0.0157.
Fair value using multiple P/Es (blended): $0.22 (PE 14.30 × EPS $0.02)
So the Final Fair Value is: $0.22
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $0.02
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 14.01 | $0.22 |
