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Analyzing Audentes Therapeutics’ Valuation Metrics

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Bottom line

Audentes Therapeutics (BOLD) incurred a net loss of $31.37 million in the second quarter compared with a net loss of $22.74 million in the second quarter of 2017. That translates to a net loss per share of $0.85 in the second quarter of 2018. Its net loss per share was $0.87 in the second quarter of 2017.

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Analyst recommendations

In September, there are 14 analysts covering Audentes Therapeutics. Nine of them have given the stock a “buy” or higher rating, and four have given it a “hold.” One analyst has given the stock a “sell” rating. The mean rating for Audentes stock is 2.14 with a target price of $39.25, implying an upside potential of 9.9% over Audentes’s trading price of $35.73 on September 11.

Peer ratings

Peers Amicus Therapeutics (FOLD), Nightstar Therapeutics (NITE), and Voyager Therapeutics (VYGR) have mean ratings of 1.86, 1.43, and 1.83, respectively, and target prices of $20, $30.57, and $31.27, respectively.

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Valuation metrics

Audentes stock fell from $40.81 on January 4 to $28.11 on April 6, which was also its lowest point in 2018. Subsequently, it climbed to $42.81 on June 20 and then sharply corrected to its current $35 level in September.

The enterprise value of Audentes is $992.27 million. Its price-to-book ratio is 4.03x.

Audentes’s cash per share is $7.95. In comparison, cash per share levels for peers Amicus Therapeutics (FOLD), Nightstar Therapeutics (NITE), and Voyager Therapeutics (VYGR) are $2.86, $3.97, and $5.97, respectively.

Its current ratio, a metric of how effectively a company can meet its short-term obligations, is 19.10x. In comparison, the current ratios of peers Amicus Therapeutics (FOLD), Nightstar Therapeutics (NITE), and Voyager Therapeutics (VYGR) are 10.9x, 9.9x, and 6.9x, respectively, indicating that Audentes is in a better position to satisfy its short-term obligations than its peers.

In the next part, we’ll take a look at Axovant Sciences.

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