As of May 22, 2025, Antares Pharma Inc's estimated intrinsic value ranges from $0.65 to $10.04 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $10.04 | +79.7% |
| Discounted Cash Flow (5Y) | $6.80 | +21.6% |
| Dividend Discount Model (Multi-Stage) | $5.83 | +4.3% |
| Dividend Discount Model (Stable) | $4.10 | -26.7% |
| Earnings Power Value | $0.65 | -88.4% |
Is Antares Pharma Inc (ATRS) undervalued or overvalued?
With the current market price at $5.59, the stock appears to be moderately undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Antares Pharma Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 0.92 | 1.03 |
| Cost of equity | 7.1% | 9.6% |
| Cost of debt | 4.0% | 6.9% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 0.02 | 0.02 |
| After-tax WACC | 7.0% | 9.5% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $7 | $1,116M | 76.3% |
| 10-Year Growth | $10 | $1,670M | 62.9% |
| 5-Year EBITDA | $8 | $1,318M | 79.9% |
| 10-Year EBITDA | $10 | $1,770M | 65.0% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $5M |
| Discount Rate (WACC) | 9.5% - 7.0% |
| Enterprise Value | $55M - $75M |
| Net Debt | $(46)M |
| Equity Value | $101M - $121M |
| Outstanding Shares | 171M |
| Fair Value | $1 - $1 |
| Selected Fair Value | $0.65 |
| Metric | Value |
|---|---|
| Market Capitalization | $955M |
| Enterprise Value | $955M |
| Trailing P/E | 0.00 |
| Forward P/E | 16.77 |
| Trailing EV/EBITDA | 10.50 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.02 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $3.01 |
| Discounted Cash Flow (5Y) | 25% | $1.70 |
| Dividend Discount Model (Multi-Stage) | 20% | $1.17 |
| Dividend Discount Model (Stable) | 15% | $0.61 |
| Earnings Power Value | 10% | $0.06 |
| Weighted Average | 100% | $6.56 |
Based on our comprehensive valuation analysis, Antares Pharma Inc's weighted average intrinsic value is $6.56, which is approximately 17.3% above the current market price of $5.59.
Key investment considerations:
Given these factors, we believe Antares Pharma Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.