Axcella Stock Valuation

AXLA
 Stock
  

USD 1.71  0.22  11.40%   

Do you wonder what the value of Axcella Health is? 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 Axcella Health, is its stock price multiplied by the total number of shares outstanding, calculating Axcella Health's enterprise value requires a different approach. It uses Axcella Health's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Axcella Health shows a prevailing Real Value of $5.19 per share. The current price of the firm is $1.71. Based on Macroaxis valuation methodology, the firm appears to be undervalued. Our model approximates the value of Axcella Health from analyzing the firm fundamentals such as return on equity of (149.60) %, and Current Valuation of 64.5 M as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Axcella Health 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 Axcella Health's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 1.71
Please note that Axcella Health's price fluctuation is risky at this time. Calculation of the real value of Axcella Health is based on 3 months time horizon. Increasing Axcella Health's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Axcella Health is useful when determining the fair value of the Axcella stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Axcella Health. Since Axcella Health is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Axcella Stock. However, Axcella Health'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.
5.19
Real Value
12.49
Upside
Estimating the potential upside or downside of Axcella Health helps investors to forecast how Axcella 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 Axcella Health more accurately as focusing exclusively on Axcella Health's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
1.402.062.72
Details
Hype
Prediction
LowEstimated ValueHigh
0.091.729.02
Details
Naive
Forecast
LowNext ValueHigh
0.0382481.919.21
Details
8 Analysts
Consensus
LowTarget PriceHigh
10.0015.7128.00
Details

Axcella Health Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Axcella Health's current stock value. Our valuation model uses many indicators to compare Axcella Health value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Axcella Health competition to find correlations between indicators driving Axcella Health's intrinsic value. More Info.
Axcella Health is rated second in price to earning category among related companies. It is number one stock in beta category among related companies . . Comparative valuation analysis is a catch-all model that can be used if you cannot value Axcella Health by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Axcella Health'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 Axcella Health'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 Axcella Health'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 Axcella Health and how it compares across the competition.

About Axcella Health Valuation

The stock valuation mechanism determines the current worth of Axcella Health on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Axcella Health. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Axcella Health based exclusively on its fundamental and basic technical indicators. By analyzing Axcella Health'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 Axcella Health'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 Axcella Health. We calculate exposure to Axcella Health's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Axcella Health's related companies.
Axcella Health Inc. operates as a clinical stage biotechnology company in the United States. Axcella Health Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts. Axcella Health operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 59 people.

Axcella Health 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 Axcella Health 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 Ratio4.88
Enterprise Value To Ebitda-0.99
Please continue to Trending Equities. You can also try Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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Is Axcella Health'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 Axcella Health. If investors know Axcella 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 Axcella Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Axcella Health is measured differently than its book value, which is the value of Axcella that is recorded on the company's balance sheet. Investors also form their own opinion of Axcella Health's value that differs from its market value or its book value, called intrinsic value, which is Axcella Health'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 Axcella Health's market value can be influenced by many factors that don't directly affect Axcella Health'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 Axcella Health's value and its price as these two are different measures arrived at by different means. Investors typically determine Axcella Health value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Axcella Health'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.