Velan Valuation
| VLN Stock | CAD 11.10 0.15 1.33% |
At this time, the company appears to be overvalued. Velan Inc has a current Real Value of C$10.29 per share. The regular price of the company is C$11.1. Our model measures the value of Velan Inc from inspecting the company fundamentals such as Operating Margin of 0.02 %, return on equity of -0.0557, 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 0.9433 | Enterprise Value 225.9 M | Enterprise Value Ebitda 10.454 | Price Sales 0.6436 | Enterprise Value Revenue 0.4273 |
Overvalued
Today
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 11.1 | Real 10.29 | Hype 11.51 |
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.
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: 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 |
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Velan Valuation Trend
Knowing Velan's actual value is paramount for traders when making sound investment determinations. Using both Velan's 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.
Velan Total Value Analysis
Velan Inc is at this time estimated to have takeover price of 225.92 M with market capitalization of 250.61 M, debt of 41.42 M, and cash on hands of 50.51 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Velan fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
225.92 M | 250.61 M | 41.42 M | 50.51 M |
Velan Investor Information
About 24.0% of the company outstanding shares are owned by insiders. The company has Price to Book (P/B) ratio of 0.94. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Velan Inc recorded a loss per share of 0.67. The entity last dividend was issued on the 15th of June 2023. Based on the analysis of Velan's profitability, liquidity, and operating efficiency, Velan Inc may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.Velan Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Velan has an asset utilization ratio of 72.34 percent. This suggests that the Company is making C$0.72 for each dollar of assets. An increasing asset utilization means that Velan Inc is more efficient with each dollar of assets it utilizes for everyday operations.Velan Ownership Allocation
The market capitalization of Velan is C$250.61 Million. Velan Inc maintains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. 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.Velan Profitability Analysis
The company reported the revenue of 346.82 M. Net Loss for the year was (19.74 M) with profit before overhead, payroll, taxes, and interest of 133.83 M.Velan Past Distributions to stockholders
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 Reported | Projected for Next Year | ||
| Gross Profit | 93.2 M | 99.7 M | |
| Pretax Profit Margin | (0.04) | 0.05 | |
| Operating Profit Margin | (0.02) | 0.07 | |
| Net Profit Margin | (0.06) | 0.03 | |
| Gross Profit Margin | 0.27 | 0.26 |
Velan Quarterly Retained Earnings |
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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.