e-Therapeutics - FY 2018 Results Show Good Progress
e-therapeutics reported results for the full year to Jan 31st 2018; business updates reflect good progress on the main research programs. Cash balance of £9.6mn was slightly higher than we expected, thanks to careful cost management.
As discussed in our initiation note of October 2017, we value e-therapeutics using a SOTP approach.
We value their leading programs about £60mn and attribute a value of £50mn to e-therapeutics' NDD platform.
Taking into consideration the cash balance at the end of January 2018 and the £1.4mn tax credit due in 1H19 (Feb-Jul of calendar year 2018), we get to a valuation of about £120mn.
Applying a 30% discount to account for potential future dilution, we reach our intrinsic value of £83mn, about 4x current market cap.
Quick facts: e-Therapeutics PLC
Price: 16.25 GBX
Market Cap: £68.1 m
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...
In exchange for publishing services rendered by the Company on behalf of e-Therapeutics PLC named herein, including the promotion by the Company of e-Therapeutics PLC in any Content on the Site, the Company receives...FOR OUR FULL DISCLAIMER CLICK HERE
LEGAL NOTICE – IMPORTANT – PLEASE READ:
Proactive Research is a trading name of Proactive Investors Limited which is regulated and authorised by the Financial Conduct Authority (FCA) under firm registration...FOR OUR FULL DISCLAIMER CLICK HERE