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Arcus Biosciences (Arcus Biosciences) Intrinsic Value: Projected FCF : $0.88 (As of May. 24, 2024)


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What is Arcus Biosciences Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-05-24), Arcus Biosciences's Intrinsic Value: Projected FCF is $0.88. The stock price of Arcus Biosciences is $16.47. Therefore, Arcus Biosciences's Price-to-Intrinsic-Value-Projected-FCF of today is 18.7.

The historical rank and industry rank for Arcus Biosciences's Intrinsic Value: Projected FCF or its related term are showing as below:

RCUS' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 2.22   Med: 3.98   Max: 21.45
Current: 18.72

During the past 8 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Arcus Biosciences was 21.45. The lowest was 2.22. And the median was 3.98.

RCUS's Price-to-Projected-FCF is ranked worse than
94.31% of 211 companies
in the Biotechnology industry
Industry Median: 2.3 vs RCUS: 18.72

Arcus Biosciences Intrinsic Value: Projected FCF Historical Data

The historical data trend for Arcus Biosciences's Intrinsic Value: Projected FCF can be seen below:

* 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.

* Premium members only.

Arcus Biosciences Intrinsic Value: Projected FCF Chart

Arcus Biosciences Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial - - - 9.32 -0.93

Arcus Biosciences Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.54 5.10 1.88 -0.93 0.88

Competitive Comparison of Arcus Biosciences's Intrinsic Value: Projected FCF

For the Biotechnology subindustry, Arcus Biosciences's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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.


Arcus Biosciences's Price-to-Projected-FCF Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Arcus Biosciences's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Arcus Biosciences's Price-to-Projected-FCF falls into.



Arcus Biosciences Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Arcus Biosciences's Free Cash Flow(6 year avg) = $-32.98.

Arcus Biosciences's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Mar24)*0.8)/Shares Outstanding (Diluted Average)
=(14.862653310476*-32.98016+707*0.8)/86.200
=0.88

* 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.


Arcus Biosciences  (NYSE:RCUS) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Arcus Biosciences's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=16.47/0.87502686538255
=18.82

* 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.


Arcus Biosciences Intrinsic Value: Projected FCF Related Terms

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Arcus Biosciences (Arcus Biosciences) Business Description

Traded in Other Exchanges
N/A
Address
3928 Point Eden Way, Hayward, CA, USA, 94545
Arcus Biosciences Inc is a clinical-stage biopharmaceutical company. It develops immunotherapies for the treatment of cancer. The company focuses on an ATP-adenosine pathway, which is a key driver of immunosuppression in the tumor microenvironment to create and optimize differentiated small-molecule immuno-oncology product candidates. Its product pipeline includes Domvanalimab, Etrumadenant, AB680, and Zimberelimab. Arcus conducts clinical trials for different types of cancers such as Prostate, Lung, Colorectal, Pancreatic, and others. The company operates through the single segment being the business of developing and commercializing immunotherapies.
Executives
Goeltz Ii Robert C. officer: Chief Financial Officer 343 OYSTER POINT BLVD, SUITE 100, SOUTH SAN FRANCISCO CA 94080
Juan C. Jaen director, 10 percent owner, officer: President 850 MAUDE AVENUE, MOUNTAIN VIEW CA 94043
Jennifer Jarrett officer: See Remarks C/O MEDIVATION, INC., 525 MARKET ST., 36TH FLOOR, SAN FRANCISCO CA 94105
Alexander Azoy officer: Chief Accounting Officer 30699 RUSSELL RANCH ROAD, SUITE 140, WESTLAKE VILLAGE CA 91362
Gilead Sciences Inc 10 percent owner 333 LAKESIDE DR, FOSTER CITY CA 94404
Terry J Rosen director, 10 percent owner, officer: Chief Executive Officer C/O TULARK INC, TWO CORP DRIVE S, SAN FRANCISCO CA 94080
Carolyn C. Tang officer: General Counsel 3928 POINT EDEN WAY, HAYWARD CA 94545
Dimitry Sa Nuyten officer: Chief Medical Officer 740 HEINZ AVENUE, C/O ADURO BIOTECH, INC., BERKELEY CA 94710
Linda Slanec Higgins director 3610 LOUIS RD., PALO ALTO CA 94303
Nicole Lambert director 322 NORTH 2200 WEST, SALT LAKE CITY UT 84116
William Grossman officer: Chief Medical Officer C/O BELLICUM PHARMACEUTICALS, INC., 2130 W. HOLCOMBE BLVD., STE. 800, HOUSTON TX 77030
Yasunori Kaneko director, 10 percent owner 509 ROEHAMPTON, HILLS BOROUGH CA 94010
Kathryn E Falberg director C/O AXOVANT SCIENCES, INC., 320 WEST 37TH STREET, 5TH FLOOR, NEW YORK NY 10018
Michael Quigley director 333 LAKESIDE DRIVE, FOSTER CITY CA 94404
Andrew J Perlman director 618 MIRADA AVE, STANFORD CA 94305