Precision BioSciences Valuation
| DTIL Stock | USD 6.50 0.68 9.47% |
At this time, the company appears to be overvalued. Precision BioSciences holds a recent Real Value of $5.34 per share. The prevailing price of the company is $6.5. Our model determines the value of Precision BioSciences from analyzing the company fundamentals such as Shares Outstanding of 7.67 M, return on equity of 0.24, and Operating Margin of (36.94) % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Precision BioSciences' valuation include:
Price Book 0.8491 | Enterprise Value -15.8 M | Enterprise Value Ebitda (0.27) | Price Sales 0.7334 | Forward PE 2.1106 |
Overvalued
Today
Please note that Precision BioSciences' price fluctuation is slightly risky at this time. Calculation of the real value of Precision BioSciences is based on 3 months time horizon. Increasing Precision BioSciences' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Precision stock is determined by what a typical buyer is willing to pay for full or partial control of Precision BioSciences. Since Precision BioSciences is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Precision Stock. However, Precision BioSciences' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 6.5 | Real 5.34 | Target 3.07 | Hype 6.52 | Naive 6.41 |
The intrinsic value of Precision BioSciences' stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Precision BioSciences' stock price.
Estimating the potential upside or downside of Precision BioSciences helps investors to forecast how Precision stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Precision BioSciences more accurately as focusing exclusively on Precision BioSciences' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Precision BioSciences' intrinsic value based on its ongoing forecasts of Precision BioSciences' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Precision BioSciences' closest peers.
Precision BioSciences Cash |
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Precision Valuation Trend
Knowing Precision BioSciences' actual value is paramount for traders when making sound investment determinations. Using both Precision BioSciences' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Precision Revenue by Product
Precision BioSciences Total Value Analysis
Precision BioSciences is currently forecasted to have valuation of (15.82 M) with market capitalization of 55.08 M, debt of 31.27 M, and cash on hands of 184.14 M. The negative valuation of Precision BioSciences may imply that the market is not capable to price the future growth of the company or it is pricing it at zero value. It may also suggest that takeover valuation may not have captured all of the outstanding financial obligations of the company both on and off balance sheet. Investors should vigilantly validate all of the Precision BioSciences fundamentals.| Takeover Price | Market Cap | Debt Obligations | Cash |
(15.82 M) | 55.08 M | 31.27 M | 184.14 M |
Precision BioSciences Investor Information
About 45.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.85. Some equities with similar Price to Book (P/B) outperform the market in the long run. Precision BioSciences had not issued any dividends in recent years. The entity had 1:30 split on the 14th of February 2024. Based on the key indicators related to Precision BioSciences' liquidity, profitability, solvency, and operating efficiency, Precision BioSciences is not in a good financial situation at this time. It has a very high odds of going through financial crisis in December.Precision BioSciences Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Precision BioSciences has an asset utilization ratio of 30.5 percent. This suggests that the Company is making $0.3 for each dollar of assets. An increasing asset utilization means that Precision BioSciences is more efficient with each dollar of assets it utilizes for everyday operations.Precision BioSciences Ownership Allocation
The market capitalization of Precision BioSciences is $55.08 Million. 30% of Precision BioSciences outstanding shares are owned by third-party entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. Note, that even with negative profits, if the true value of the company is larger than the current market value, you may still be able to generate positive returns on investment in this company.Precision BioSciences Profitability Analysis
The company reported the previous year's revenue of 48.73 M. Net Loss for the year was (61.32 M) with profit before overhead, payroll, taxes, and interest of 25.1 M.About Precision BioSciences Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Precision BioSciences. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Precision BioSciences based exclusively on its fundamental and basic technical indicators. By analyzing Precision BioSciences's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Precision BioSciences's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Precision BioSciences. We calculate exposure to Precision BioSciences's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Precision BioSciences's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 40.5 M | 33.4 M | |
| Pretax Profit Margin | (0.87) | (0.92) | |
| Operating Profit Margin | (0.90) | (0.94) | |
| Net Loss | (1.26) | (1.32) | |
| Gross Profit Margin | 0.83 | 0.59 |
Precision BioSciences Growth Indicators
Investing in growth stocks can be very risky. If the company such as Precision BioSciences does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 3.8 M | |
| Forward Price Earnings | 2.1106 |
Precision BioSciences Current Valuation Indicators
Precision BioSciences' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Precision BioSciences' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Precision BioSciences, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Precision BioSciences' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Precision BioSciences' worth.When determining whether Precision BioSciences is a strong investment it is important to analyze Precision BioSciences' 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 Precision BioSciences' future performance. For an informed investment choice regarding Precision Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Precision BioSciences. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. For more information on how to buy Precision Stock please use our How to buy in Precision Stock guide.You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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 Precision BioSciences. If investors know Precision 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 Precision BioSciences listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 0.4 | Revenue Per Share 12.872 | Quarterly Revenue Growth (0.96) | Return On Assets (0.06) | Return On Equity 0.2444 |
The market value of Precision BioSciences is measured differently than its book value, which is the value of Precision that is recorded on the company's balance sheet. Investors also form their own opinion of Precision BioSciences' value that differs from its market value or its book value, called intrinsic value, which is Precision BioSciences' 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 Precision BioSciences' market value can be influenced by many factors that don't directly affect Precision BioSciences' 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 Precision BioSciences' value and its price as these two are different measures arrived at by different means. Investors typically determine if Precision BioSciences is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Precision BioSciences' 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.