Arca Biopharma Stock Valuation

ABIO
 Stock
  

USD 2.05  0.03  1.44%   

What is the current enterprise value of Arca Biopharma? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Arca Biopharma, is its stock price multiplied by the total number of shares outstanding, calculating Arca Biopharma's enterprise value requires a different approach. It uses Arca Biopharma's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Arca Biopharma shows a prevailing Real Value of $5.67 per share. The current price of the firm is $2.05. Based on Macroaxis valuation methodology, the firm appears to be undervalued. Our model approximates the value of Arca Biopharma from analyzing the firm fundamentals such as current valuation of (15.88 M), and Return On Equity of (31.66) % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Arca Biopharma Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Arca Biopharma's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Arca Biopharma Most Recent Valuation Data

Price Book
0.7
Enterprise Value
-13.7 M
Enterprise Value Ebitda
0.94
Undervalued
Today 2.05
Please note that Arca Biopharma's price fluctuation is somewhat reliable at this time. Calculation of the real value of Arca Biopharma is based on 3 months time horizon. Increasing Arca Biopharma's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Arca Biopharma is useful when determining the fair value of the Arca Biopharma stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Arca Biopharma. Since Arca Biopharma is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Arca Biopharma Stock. However, Arca Biopharma'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.
5.67
Real Value
7.91
Upside
Estimating the potential upside or downside of Arca Biopharma helps investors to forecast how Arca Biopharma 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 Arca Biopharma more accurately as focusing exclusively on Arca Biopharma's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
1.952.052.15
Details
Hype
Prediction
LowEstimated ValueHigh
0.102.054.29
Details
Naive
Forecast
LowNext ValueHigh
0.0432442.164.40
Details
1 Analysts
Consensus
LowTarget PriceHigh
16.5016.5016.50
Details

Arca Biopharma Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Arca Biopharma's current stock value. Our valuation model uses many indicators to compare Arca Biopharma value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Arca Biopharma competition to find correlations between indicators driving Arca Biopharma's intrinsic value. More Info.
Arca Biopharma is rated third in price to sales category among related companies. It is rated third in price to book category among related companies fabricating about  0.21  of Price to Book per Price to Sales. The ratio of Price to Sales to Price to Book for Arca Biopharma is roughly  4.84 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Arca Biopharma by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Arca Biopharma's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Arca Biopharma's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Arca Biopharma's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Arca Biopharma and how it compares across the competition.

About Arca Biopharma Valuation

The stock valuation mechanism determines the current worth of Arca Biopharma on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Arca Biopharma. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Arca Biopharma based exclusively on its fundamental and basic technical indicators. By analyzing Arca Biopharma's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Arca Biopharma's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Arca Biopharma. We calculate exposure to Arca Biopharma's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Arca Biopharma's related companies.
Fiscal Year End
December
Industry
Biotechnology
Concentration
Biotechnology
Full Time Employees
17.0
Service Category
Biotechnology
Employer Id Number
36-3855489
ARCA biopharma, Inc., a clinical-stage biopharmaceutical company, develops and commercializes genetically targeted therapies for cardiovascular diseases. The company was incorporated in 2004 and is headquartered in Westminster, Colorado. Arca Biopharma operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 17 people.

Arca Biopharma Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Arca Biopharma does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio16.53
Enterprise Value To Ebitda0.94
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Is Arca Biopharma's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Arca Biopharma. If investors know Arca Biopharma will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Arca Biopharma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
29.5 M
Return On Assets
(0.17) 
Return On Equity
(0.29) 
The market value of Arca Biopharma is measured differently than its book value, which is the value of Arca Biopharma that is recorded on the company's balance sheet. Investors also form their own opinion of Arca Biopharma's value that differs from its market value or its book value, called intrinsic value, which is Arca Biopharma's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arca Biopharma's market value can be influenced by many factors that don't directly affect Arca Biopharma's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Arca Biopharma's value and its price as these two are different measures arrived at by different means. Investors typically determine Arca Biopharma value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arca Biopharma's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.