Velan Valuation

VLN Stock  CAD 15.00  0.25  1.69%   
At this time, the company appears to be overvalued. Velan Inc has a current Real Value of C$12.6 per share. The regular price of the company is C$15.0. Our model measures the value of Velan Inc from inspecting the company fundamentals such as Return On Equity of -0.27, operating margin of 0.02 %, and Shares Outstanding of 6.02 M as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Velan's valuation include:
Price Book
1.2529
Enterprise Value
319.1 M
Enterprise Value Ebitda
7.7213
Price Sales
1.0987
Enterprise Value Revenue
0.7997
Overvalued
Today
15.00
Please note that Velan's price fluctuation is somewhat reliable at this time. Calculation of the real value of Velan Inc is based on 3 months time horizon. Increasing Velan's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Velan is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Velan Stock. However, Velan's 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  15.0 Real  12.6 Hype  15.0 Naive  16.04
The intrinsic value of Velan's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Velan's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
12.60
Real Value
15.79
Upside
Estimating the potential upside or downside of Velan Inc helps investors to forecast how Velan 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 Velan more accurately as focusing exclusively on Velan's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
12.3816.3920.39
Details
Hype
Prediction
LowEstimatedHigh
11.8115.0018.19
Details
Potential
Annual Dividend
LowForecastedHigh
0.120.120.12
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Velan's intrinsic value based on its ongoing forecasts of Velan's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Velan's closest peers.

Velan Cash

60.64 Million

About Velan Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of Velan Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Velan Inc based exclusively on its fundamental and basic technical indicators. By analyzing Velan's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Velan's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Velan. We calculate exposure to Velan's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Velan's related companies.
Last ReportedProjected for Next Year
Gross Profit93.2 M99.5 M
Pretax Profit Margin 0.05  0.04 
Operating Profit Margin 0.07  0.06 
Net Profit Margin 0.03  0.02 
Gross Profit Margin 0.26  0.31 

Velan Quarterly Retained Earnings

135.42 Million

Other Information on Investing in Velan Stock

Velan financial ratios help investors to determine whether Velan Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Velan with respect to the benefits of owning Velan security.