Is Supernus Pharmaceuticals stock currently undervalued?

Yes, a Discounted Cash Flow analysis suggests Supernus Pharmaceuticals stock is undervalued by 82.0%, with a fair value estimate of $252.45 per share.

What are the recent performance indicators for Supernus Pharmaceuticals stock?

Supernus Pharmaceuticals stock has gained 24.4% year-to-date and 25.5% over the last twelve months, despite recent volatility.

What are the future cash flow projections for Supernus Pharmaceuticals?

Analysts project Supernus Pharmaceuticals' free cash flow to rise sharply to $446.8 million by the end of 2029.

Home / Business and Economy / Supernus Pharma: 82% Undervalued by DCF Analysis?

Supernus Pharma: 82% Undervalued by DCF Analysis?

25 Nov

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Summary

Supernus Pharmaceuticals stock gained 24.4% this year.
DCF analysis indicates an 82.0% undervaluation.
Analysts project free cash flow to reach $446.8 million by 2029.

Supernus Pharma: 82% Undervalued by DCF Analysis?

Supernus Pharmaceuticals has delivered impressive returns, gaining 24.4% year-to-date and 25.5% over the past year. This performance is partly driven by positive developments in its pipeline and the FDA's favorable outlook on a key product candidate. These factors have amplified existing growth projections, attracting significant investor attention.

A rigorous Discounted Cash Flow (DCF) analysis, employing a two-stage Free Cash Flow to Equity method, estimates Supernus Pharmaceuticals' intrinsic value at $252.45 per share. This valuation model indicates the stock is currently trading at a substantial 82.0% discount, suggesting it may be significantly undervalued.

Projections show a sharp increase in free cash flow from $71.1 million to an estimated $446.8 million by the end of 2029. Further long-term forecasts extend to 2035, reflecting anticipated steady expansion. Based on this financial outlook and valuation metrics, Supernus Pharmaceuticals appears to be an attractive prospect for investors seeking undervalued opportunities.