What is NKTR's Intrinsic value?

Nektar Therapeutics (NKTR) Intrinsic Value Analysis

Executive Summary

As of June 17, 2025, Nektar Therapeutics's estimated intrinsic value ranges from $0.00 to $0.00 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside

Is Nektar Therapeutics (NKTR) undervalued or overvalued?

With the current market price at $9.25, the stock appears to be significantly overvalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Nektar Therapeutics's intrinsic value, including:

Weighted Average Cost of Capital (WACC)

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 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.48 1.26
Cost of equity 6.1% 11.9%
Cost of debt 5.0% 5.0%
Tax rate 0.1% 0.1%
Debt/Equity ratio 1 1
After-tax WACC 5.5% 8.5%

Valuation Methods

Key Financial Metrics

Metric Value
Market Capitalization $135M
Enterprise Value $96M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 10.40
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 1.05

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Weighted Average 100% $0.00

Investment Conclusion

Based on our comprehensive valuation analysis, Nektar Therapeutics's weighted average intrinsic value is $0.00, which is approximately 100.0% below the current market price of $9.25.

Key investment considerations:

  • Strong projected earnings growth (-121% to -113% margin)
  • Consistent cash flow generation

Given these factors, we believe Nektar Therapeutics is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.