Spero Therapeutics Valuation
| SPRO Stock | USD 0.82 0.04 5.13% |
Today, the company appears to be undervalued. Spero Therapeutics has a current Real Value of $1.84 per share. The regular price of the company is $0.82. Our model measures the value of Spero Therapeutics from inspecting the company fundamentals such as Shares Outstanding of 54.52 M, operating margin of (1.38) %, and Return On Equity of 0.0589 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Spero Therapeutics' valuation include:
Price Book 0.6472 | Enterprise Value | Enterprise Value Ebitda 0.7464 | Price Sales 0.3982 | Trailing PE 9.72 |
Undervalued
Today
Please note that Spero Therapeutics' price fluctuation is very risky at this time. Calculation of the real value of Spero Therapeutics is based on 3 months time horizon. Increasing Spero Therapeutics' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Spero Therapeutics is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Spero Stock. However, Spero Therapeutics' 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 0.82 | Real 1.84 | Target 5.0 | Hype 0.82 | Naive 0.88 |
The intrinsic value of Spero Therapeutics' 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 Spero Therapeutics' 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 Spero Therapeutics helps investors to forecast how Spero 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 Spero Therapeutics more accurately as focusing exclusively on Spero Therapeutics' 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 Spero Therapeutics' intrinsic value based on its ongoing forecasts of Spero Therapeutics' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Spero Therapeutics' closest peers.
Spero Therapeutics Cash |
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Spero Valuation Trend
Knowing Spero Therapeutics' actual value is paramount for traders when making sound investment determinations. Using both Spero Therapeutics' 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.
Spero Therapeutics Total Value Analysis
Spero Therapeutics is at this time projected to have valuation of (29.27 M) with market capitalization of 42.39 M, debt of 5.54 M, and cash on hands of 45.4 M. The negative valuation of Spero Therapeutics may imply that the market is not capable to price the future growth of the company or it is pricing it at zero value. It may also suggest that takeover valuation may not have captured all of the outstanding financial obligations of the company both on and off balance sheet. Investors should vigilantly validate all of the Spero Therapeutics fundamentals.| Takeover Price | Market Cap | Debt Obligations | Cash |
(29.27 M) | 42.39 M | 5.54 M | 45.4 M |
Spero Therapeutics Investor Information
About 24.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 0.65. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Based on the key indicators related to Spero Therapeutics' liquidity, profitability, solvency, and operating efficiency, Spero Therapeutics is performing exceptionally good at this time. It has a great odds to report excellent financial results in April.Spero Therapeutics Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of Spero suggests not a very effective usage of assets in March.Spero Therapeutics Ownership Allocation
Spero Therapeutics shows a total of 54.52 Million outstanding shares. Spero Therapeutics maintains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Spero Therapeutics Profitability Analysis
The company reported the previous year's revenue of 96.73 M. Net Income was 22.81 M with profit before overhead, payroll, taxes, and interest of 54.9 M.About Spero Therapeutics Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Spero Therapeutics. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Spero Therapeutics based exclusively on its fundamental and basic technical indicators. By analyzing Spero Therapeutics's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Spero Therapeutics's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Spero Therapeutics. We calculate exposure to Spero Therapeutics's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Spero Therapeutics's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 110.8 M | 116.4 M | |
| Pretax Profit Margin | 0.24 | 0.25 | |
| Operating Profit Margin | 0.20 | 0.21 | |
| Net Profit Margin | 0.21 | 0.22 | |
| Gross Profit Margin | 0.90 | 0.94 |
Spero Therapeutics 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 | 53 M | |
| Quarterly Earnings Growth Y O Y | 0.753 |
Spero Therapeutics Current Valuation Indicators
Spero Therapeutics' 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 Spero Therapeutics' 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 Spero Therapeutics, 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 Spero Therapeutics' 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 Spero Therapeutics' worth.When determining whether Spero Therapeutics offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Spero Therapeutics' 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 Spero Therapeutics Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Spero Therapeutics Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Spero Therapeutics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Spero Stock, please use our How to Invest in Spero Therapeutics guide.You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Is Biotechnology 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 Spero Therapeutics. If investors know Spero 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 Spero Therapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.753 | Earnings Share 0.08 | Revenue Per Share | Quarterly Revenue Growth (0.47) | Return On Assets |
The market value of Spero Therapeutics is measured differently than its book value, which is the value of Spero that is recorded on the company's balance sheet. Investors also form their own opinion of Spero Therapeutics' value that differs from its market value or its book value, called intrinsic value, which is Spero Therapeutics' 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 Spero Therapeutics' market value can be influenced by many factors that don't directly affect Spero Therapeutics' 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 Spero Therapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Spero Therapeutics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Spero Therapeutics' 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.