Tarsus Pharmaceuticals (Tarsus Pharmaceuticals) Intrinsic Value: DCF (Dividends Based) : $ (As of Jun. 06, 2024)

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Tarsus Pharmaceuticals Intrinsic Value: DCF (Dividends Based) Chart

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Competitive Comparison of Tarsus Pharmaceuticals's Intrinsic Value: DCF (Dividends Based)

For the Biotechnology subindustry, Tarsus Pharmaceuticals's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

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Tarsus Pharmaceuticals's Price-to-DCF (Dividends Based) Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Tarsus Pharmaceuticals's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Tarsus Pharmaceuticals's Price-to-DCF (Dividends Based) falls into.

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Tarsus Pharmaceuticals Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.29%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = %
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
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3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Tarsus Pharmaceuticals's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

set x = (1+g1)/(1+d) = (1+)/(1+0.11) =
and y = (1+g2)/(1+d) = (1+)/(1+0.11) =

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Tarsus Pharmaceuticals  (NAS:TARS) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.

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Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

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Tarsus Pharmaceuticals Intrinsic Value: DCF (Dividends Based) Related Terms

Thank you for viewing the detailed overview of Tarsus Pharmaceuticals's Intrinsic Value: DCF (Dividends Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

Predictability Rank Intrinsic Value: Projected FCF Intrinsic Value: DCF (FCF Based) Intrinsic Value: DCF (Earnings Based) Margin of Safety % (DCF Dividends Based) Margin of Safety % (DCF FCF Based) Margin of Safety % (DCF Earnings Based) 5-Year Dividend Growth Rate Dividends per Share

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Tarsus Pharmaceuticals (Tarsus Pharmaceuticals) Business Description

Executives

Bobak R. Azamian	director, 10 percent owner, officer: President and CEO	15440 LAGUNA CANYON ROAD, SUITE 160, IRVINE CA 92618
Jose M. Trevejo	officer: Chief Medical Officer	C/O TARSUS PHARMACEUTICALS, INC., 15440 LAGUNA CANYON ROAD, SUITE 160, IRVINE CA 92618
Andrew D. Goldberg	director	15440 LAGUNA CANYON ROAD, SUITE 160, IRVINE CA 92618
Dianne C. Whitfield	officer: Chief Human Resources Officer	15440 LAGUNA CANYON ROAD, SUITE 160, IRVINE CA 92618
Bryan Wahl	officer: General Counsel	15440 LAGUNA CANYON ROAD, SUITE 160, IRVINE CA 92618
Elizabeth Yeu Lin	director	25651 ATLANTIC OCEAN DRIVE, LAKE FOREST CA 92630
Aziz Mottiwala	officer: Chief Commercial Officer	233 WILSHIRE BOULEVARD, SUITE 280, SANTA MONICA CA 90401
Jeffrey S Farrow	officer: See Remarks	TWO CORPORATE DRIVE, SOUTH SAN FRANCISCO CA 94080
Leonard M. Greenstein	officer: Chief Financial Officer	24562 BELGREEN PLACE, LAKE FOREST CA 92630
Seshadri Neervannan	officer: Chief Operating Officer	15440 LAGUNA CANYON ROAD, SUITE 160, IRVINE CA 92618
Mark J. Holdbrook	officer: V.P., Clinical Affairs	15440 LAGUNA CANYON ROAD, SUITE 160, IRVINE CA 92618
Scott W Morrison	director	C/O GLOBAL BLOOD THERAPEUTICS, INC., 400 EAST JAMIE COURT SUITE 101, SOUTH SAN FRANCISCO CA 94080
Vivo Capital Fund Ix, L.p.	10 percent owner	192 LYTTON AVENUE, PALO ALTO CA 94301
Michael Ackermann	director, 10 percent owner	202 CARNEGIE CENTER, SUITE 109, PRINCETON NJ 08540
Rosemary A Crane	director	C/O CATALENT, INC., 14 SCHOOLHOUSE ROAD, SOMERSET NJ 08873