Lipocine Valuation
| LPCN Stock | USD 4.45 0.03 0.68% |
At this time, the firm appears to be undervalued. Lipocine secures a last-minute Real Value of $12.29 per share. The latest price of the firm is $4.45. Our model forecasts the value of Lipocine from analyzing the firm fundamentals such as Return On Equity of -0.34, current valuation of 3.81 M, and Profit Margin of (1.77) % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Lipocine's valuation include:
Price Book 1.2365 | Enterprise Value 3.8 M | Enterprise Value Ebitda 0.651 | Price Sales 4.9236 | Enterprise Value Revenue 0.4814 |
Undervalued
Today
Please note that Lipocine's price fluctuation is somewhat reliable at this time. Calculation of the real value of Lipocine is based on 3 months time horizon. Increasing Lipocine's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Lipocine is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lipocine Stock. However, Lipocine'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. | Historical | Market 4.45 | Real 12.29 | Target 36.33 | Hype 4.49 | Naive 4.74 |
The intrinsic value of Lipocine's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Lipocine's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Lipocine helps investors to forecast how Lipocine 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 Lipocine more accurately as focusing exclusively on Lipocine's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Lipocine's intrinsic value based on its ongoing forecasts of Lipocine's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Lipocine's closest peers.
Lipocine Cash |
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Lipocine Valuation Trend
Knowing Lipocine's actual value is paramount for traders when making sound investment determinations. Using both Lipocine's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Lipocine Total Value Analysis
Lipocine is now forecasted to have valuation of 3.81 M with market capitalization of 23.64 M, debt of 17.17 K, and cash on hands of 37.4 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Lipocine fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
3.81 M | 23.64 M | 17.17 K | 37.4 M |
Lipocine Investor Information
The company has price-to-book ratio of 1.24. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Lipocine recorded a loss per share of 0.75. The entity had not issued any dividends in recent years. The firm had 1:17 split on the 12th of May 2023. Based on the measurements of operating efficiency obtained from Lipocine's historical financial statements, Lipocine may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.Lipocine Asset Utilization
One of the ways to look at asset utilization of Lipocine is to check how much profit was generated for every dollar of assets it reports. Lipocine secures a negative usage of assets of -0.23 %, losing $0.002267 for each dollar of assets held by the firm. Inadequate asset utilization conveys that the company is being less effective with each dollar of assets it secures. Strictly speaking, asset utilization of Lipocine shows how discouraging it operates for each dollar spent on its assets.Lipocine Ownership Allocation
The market capitalization of Lipocine is $23.64 Million. Roughly 87.14 % of Lipocine outstanding shares are held by general public with 2.91 pct. owned by insiders and only 9.95 % by institutional investors. Note, that even with negative profits, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company.Lipocine Profitability Analysis
Net Loss for the year was (16.35 M) with profit before overhead, payroll, taxes, and interest of 500 K.About Lipocine Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Lipocine. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lipocine based exclusively on its fundamental and basic technical indicators. By analyzing Lipocine's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Lipocine's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Lipocine. We calculate exposure to Lipocine's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Lipocine's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | -2.9 M | -3 M | |
| Pretax Profit Margin | 5.74 | 6.02 | |
| Operating Profit Margin | 6.29 | 6.60 | |
| Net Profit Margin | 5.74 | 6.02 | |
| Gross Profit Margin | 0.63 | 0.56 |
Lipocine Growth Indicators
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.
| Common Stock Shares Outstanding | 5.3 M |
Lipocine Current Valuation Indicators
Lipocine's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Lipocine's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Lipocine, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Lipocine's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Lipocine's worth.When determining whether Lipocine offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lipocine's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lipocine Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lipocine Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lipocine. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. To learn how to invest in Lipocine Stock, please use our How to Invest in Lipocine guide.You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Is Pharmaceuticals space 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 Lipocine. If investors know Lipocine 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 Lipocine listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.75) | Revenue Per Share 0.903 | Quarterly Revenue Growth 137.519 | Return On Assets (0.23) | Return On Equity (0.34) |
The market value of Lipocine is measured differently than its book value, which is the value of Lipocine that is recorded on the company's balance sheet. Investors also form their own opinion of Lipocine's value that differs from its market value or its book value, called intrinsic value, which is Lipocine'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 Lipocine's market value can be influenced by many factors that don't directly affect Lipocine'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 Lipocine's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lipocine is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lipocine'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.