* Note: Prices are in Million (M) USD.
Description:
Revolution Medicines, Inc. is a pioneering clinical-stage oncology company based in Redwood City, California, focused on developing transformative therapies for RAS-addicted cancers. By leveraging precision medicine, the company aims to target traditionally "undruggable" cancer drivers, thus addressing significant unmet medical needs in oncology. With a promising pipeline of innovative treatments and an emphasis on strategic partnerships, Revolution Medicines is well-positioned to enhance patient outcomes and offers a compelling investment opportunity for those interested in cutting-edge cancer therapeutics.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $217 M
Debt : $16 M
EBITDA : $-1,013 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Health care
Industry: Biotechnology
Biotechnology detected → treating as non-Technology. 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 8 overlapping fiscal years (max 20).Average Free Cash Flow: $-187 M
Average Revenue: $24 M
Revenue Converted To Free Cash Flow (%): -789.9%
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): $0 M
Revenue 5 Years Ago (2019-12-31): $50 M
Total Growth over 5 Years: -100.0%
5-Year Revenue CAGR (Historical): -100.0%
Forward 5-Year CAGR (Tapered): -90.0%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $168 M
Share Count 5 Years Ago (2020-12-31): $67 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): $-6.27
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-6.27
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 8 valid ROE years (max 20).Average ROE: -112.7%
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: $69.14
52-Week Low: $29.17
Threshold Price (15% Above 52-Week Low): $33.55
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: $13,097 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% 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 Revolution Medicines Inc (RVMD) stock.
Fair Value PE 9, Industry Based PE 15, Risk-Free Anchored PE (25% MoS) 18.47. Based on these 3 values, average assigned is 14.16. The fair value of Revolution Medicines Inc (RVMD) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
