Galmed Pharmaceuticals Total Debt vs. Book Value Per Share

GLMD Stock  USD 2.68  0.02  0.74%   
Based on Galmed Pharmaceuticals' profitability indicators, Galmed Pharmaceuticals may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in March. Profitability indicators assess Galmed Pharmaceuticals' ability to earn profits and add value for shareholders. At present, Galmed Pharmaceuticals' EV To Sales is projected to decrease significantly based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 4.50, whereas Operating Cash Flow Sales Ratio is forecasted to decline to (4.18). At present, Galmed Pharmaceuticals' Interest Income is projected to increase significantly based on the last few years of reporting. The current year's Change To Netincome is expected to grow to about 2.2 M, whereas Income Before Tax is forecasted to decline to (6.5 M).
For Galmed Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Galmed Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Galmed Pharmaceuticals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Galmed Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Galmed Pharmaceuticals over time as well as its relative position and ranking within its peers.
  
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Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Galmed Pharmaceuticals. If investors know Galmed will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Galmed Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
69.72
Return On Assets
(0.29)
Return On Equity
(0.53)
The market value of Galmed Pharmaceuticals is measured differently than its book value, which is the value of Galmed that is recorded on the company's balance sheet. Investors also form their own opinion of Galmed Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Galmed Pharmaceuticals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Galmed Pharmaceuticals' market value can be influenced by many factors that don't directly affect Galmed Pharmaceuticals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Galmed Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Galmed Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Galmed Pharmaceuticals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Galmed Pharmaceuticals Book Value Per Share vs. Total Debt Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Galmed Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Galmed Pharmaceuticals value to that of its competitors to determine the firm's financial worth.
Galmed Pharmaceuticals is rated below average in total debt category among its peers. It is one of the top stocks in book value per share category among its peers . The ratio of Total Debt to Book Value Per Share for Galmed Pharmaceuticals is about  1,242 . At present, Galmed Pharmaceuticals' Book Value Per Share is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Galmed Pharmaceuticals by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Galmed Total Debt vs. Competition

Galmed Pharmaceuticals is rated below average in total debt category among its peers. Total debt of Health Care industry is currently estimated at about 496.15 Million. Galmed Pharmaceuticals adds roughly 41,000 in total debt claiming only tiny portion of equities under Health Care industry.
Total debt  Capitalization  Workforce  Valuation  Revenue

Galmed Book Value Per Share vs. Total Debt

Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.

Galmed Pharmaceuticals

Total Debt

 = 

Bonds

+

Notes

 = 
41 K
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.

Galmed Pharmaceuticals

Book Value per Share

 = 

Common Equity

Average Shares

 = 
33.01 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.

Galmed Book Value Per Share Comparison

Galmed Pharmaceuticals is currently under evaluation in book value per share category among its peers.

Galmed Pharmaceuticals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Galmed Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Galmed Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Galmed Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Galmed Pharmaceuticals, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-408.6 K-388.2 K
Operating Income6.7 M7.1 M
Income Before Tax-6.2 M-6.5 M
Total Other Income Expense Net-13 M-12.3 M
Net Loss-6.2 M-6.5 M
Income Tax Expense-13.5 M-12.8 M
Net Loss-6.8 M-7.1 M
Net Loss-25.9 M-24.6 M
Net Interest Income856.8 K775.1 K
Interest Income431.2 K747.7 K
Change To Netincome1.6 M2.2 M
Net Loss(34.56)(36.29)
Income Quality 0.80  0.67 
Net Income Per E B T 1.20  1.09 

Galmed Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Galmed Pharmaceuticals. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Galmed Pharmaceuticals position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Galmed Pharmaceuticals' important profitability drivers and their relationship over time.

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When determining whether Galmed Pharmaceuticals is a strong investment it is important to analyze Galmed Pharmaceuticals' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Galmed Pharmaceuticals' future performance. For an informed investment choice regarding Galmed Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
For information on how to trade Galmed Stock refer to our How to Trade Galmed Stock guide.
You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
To fully project Galmed Pharmaceuticals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Galmed Pharmaceuticals at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Galmed Pharmaceuticals' income statement, its balance sheet, and the statement of cash flows.
Potential Galmed Pharmaceuticals investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Galmed Pharmaceuticals investors may work on each financial statement separately, they are all related. The changes in Galmed Pharmaceuticals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Galmed Pharmaceuticals's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.