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Ironwood Pharmaceuticals (Ironwood Pharmaceuticals) Intrinsic Value: Projected FCF : $5.20 (As of May. 02, 2024)


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What is Ironwood Pharmaceuticals 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 (2024-05-02), Ironwood Pharmaceuticals's Intrinsic Value: Projected FCF is $5.20. The stock price of Ironwood Pharmaceuticals is $8.23. Therefore, Ironwood Pharmaceuticals's Price-to-Intrinsic-Value-Projected-FCF of today is 1.6.

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

IRWD' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.49   Med: 2.2   Max: 2.83
Current: 1.58

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Ironwood Pharmaceuticals was 2.83. The lowest was 1.49. And the median was 2.20.

IRWD's Price-to-Projected-FCF is ranked worse than
50.59% of 597 companies
in the Drug Manufacturers industry
Industry Median: 1.56 vs IRWD: 1.58

Ironwood Pharmaceuticals Intrinsic Value: Projected FCF Historical Data

The historical data trend for Ironwood Pharmaceuticals'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.

Ironwood Pharmaceuticals Intrinsic Value: Projected FCF Chart

Ironwood Pharmaceuticals Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only -9.99 -3.54 4.12 7.06 5.20

Ironwood Pharmaceuticals Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 7.06 8.08 3.91 3.93 5.20

Competitive Comparison of Ironwood Pharmaceuticals's Intrinsic Value: Projected FCF

For the Drug Manufacturers - Specialty & Generic subindustry, Ironwood Pharmaceuticals'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.


Ironwood Pharmaceuticals's Price-to-Projected-FCF Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Ironwood Pharmaceuticals's Price-to-Projected-FCF distribution charts can be found below:

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



Ironwood Pharmaceuticals 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 Ironwood Pharmaceuticals's Free Cash Flow(6 year avg) = $130.62.

Ironwood Pharmaceuticals'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 (Dec23)/0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*130.61664+-346.295/0.8)/156.020
=5.20

* 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.


Ironwood Pharmaceuticals  (NAS:IRWD) 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.

Ironwood Pharmaceuticals's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=8.23/5.1957927642838
=1.58

* 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.


Ironwood Pharmaceuticals Intrinsic Value: Projected FCF Related Terms

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Ironwood Pharmaceuticals (Ironwood Pharmaceuticals) Business Description

Traded in Other Exchanges
Address
100 Summer Street, Suite 2300, Boston, MA, USA, 02110
Ironwood Pharmaceuticals is a specialty and generic drug manufacturing company that operates a human therapeutics segment. The company is focused on advancing innovative product opportunities in areas of large unmet need, including irritable bowel syndrome with constipation, chronic idiopathic constipation, hyperuricemia associated with uncontrolled gout, uncontrolled gastroesophageal reflux disease, and vascular and fibrotic diseases. The company considers collaborative licenses, commercial agreements, and acquisition investment to be potential components of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.
Executives
Marla L Kessler director C/O IRONWOOD PHARMACEUTICALS, INC., 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Andrew Davis officer: SVP, Chief Business Officer 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Sravan Kumar Emany officer: SVP, Chief Financial Officer 100 SUMMER ST, SUITE 2300, BOSTON MA 02109
Ronald Silver officer: Principal Accounting Officer 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Minardo John officer: Chief Legal Officer 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Thomas A Mccourt officer: Chief Commercial Officer C/O IRONWOOD PHARMACEUTICALS, INC., 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Michael Shetzline officer: CMO,SVP,Head-Res&Drug 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Jason Rickard officer: SVP, Chief Operating Officer 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Mark G Currie officer: Chief Scientific Officer C/O CYCLERION THERAPEUTICS, INC., 301 BINNEY STREET, CAMBRIDGE MA 02142
Julie Mchugh director C/O IRONWOOD PHARMACEUTICALS, INC., 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Sarissa Capital Management Lp 10 percent owner 660 STEAMBOAT ROAD, GREENWICH CT 06830
Alexander J Denner director C/O SARISSA CAPITAL MANAGEMENT LP, 660 STEAMBOAT ROAD, 3RD FLOOR, GREENWICH CT 06830
Edward P Owens director C/O IRONWOOD PHARMACEUTICALS, INC., 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Gina Consylman officer: Chief Accounting Officer C/O IRONWOOD PHARMACEUTICALS, INC., 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Kilroy Conor officer: SVP, GC & Secretary 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110