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Neuren Pharmaceuticals Ltd
ASX:NEU

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Neuren Pharmaceuticals Ltd
ASX:NEU
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Price: 12.17 AUD -2.25% Market Closed
Market Cap: AU$1.5B

EV/OCF

9.9
Current
33%
Cheaper
vs 3-y average of 14.9

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
9.9
=
Enterprise Value
AU$1.2B
/
Operating Cash Flow
AU$125.4m

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
9.9
=
Enterprise Value
AU$1.2B
/
Operating Cash Flow
AU$125.4m

Valuation Scenarios

Neuren Pharmaceuticals Ltd is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (14.9), the stock would be worth AU$18.28 (50% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+50%
Average Upside
37%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 9.9 AU$12.17
0%
3-Year Average 14.9 AU$18.28
+50%
5-Year Average 11.3 AU$13.88
+14%
Industry Average 14 AU$17.2
+41%
Country Average 14.1 AU$17.3
+42%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
AU
Neuren Pharmaceuticals Ltd
ASX:NEU
1.6B AUD 9.9 50.6
US
Eli Lilly and Co
NYSE:LLY
853.2B USD 52.7 41.3
US
Johnson & Johnson
NYSE:JNJ
544.6B USD 23.3 25.9
CH
Roche Holding AG
SIX:ROG
248.4B CHF 14.9 19.6
UK
AstraZeneca PLC
LSE:AZN
225.8B GBP 21.9 29.2
CH
Novartis AG
SIX:NOVN
226.8B CHF 15.5 20
US
Merck & Co Inc
NYSE:MRK
278.5B USD 18.9 15.3
IE
Endo International PLC
LSE:0Y5F
244.4B USD 936 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.1T DKK 10.2 11
US
Pfizer Inc
NYSE:PFE
155.3B USD 17.4 20
US
Bristol-Myers Squibb Co
NYSE:BMY
119.6B USD 10.8 17
P/E Multiple
Earnings Growth PEG
AU
Neuren Pharmaceuticals Ltd
ASX:NEU
Average P/E: 25
50.6
77%
0.7
US
Eli Lilly and Co
NYSE:LLY
41.3
32%
1.3
US
Johnson & Johnson
NYSE:JNJ
25.9
8%
3.2
CH
Roche Holding AG
SIX:ROG
19.6
14%
1.4
UK
AstraZeneca PLC
LSE:AZN
29.2
25%
1.2
CH
Novartis AG
SIX:NOVN
20
14%
1.4
US
Merck & Co Inc
NYSE:MRK
15.3
14%
1.1
IE
E
Endo International PLC
LSE:0Y5F
Negative Multiple: -83.6 N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
11
0%
N/A
US
Pfizer Inc
NYSE:PFE
20
22%
0.9
US
Bristol-Myers Squibb Co
NYSE:BMY
17
16%
1.1

Market Distribution

In line with most companies in Australia
Percentile
33rd
Based on 1 376 companies
33rd percentile
9.9
Low
0 — 9.3
Typical Range
9.3 — 24.1
High
24.1 —
Distribution Statistics
Australia
Min 0
30th Percentile 9.3
Median 14.1
70th Percentile 24.1
Max 9 251.5

Neuren Pharmaceuticals Ltd
Glance View

Market Cap
1.5B AUD
Industry
Pharmaceuticals

Founded in 1993, Neuren Pharmaceuticals Ltd has carved a niche for itself within the biotech industry, focusing primarily on neurological and neurodevelopmental disorders. The company operates at the intriguing intersection of innovation and medicine, where the stakes are high, but so are the potential rewards. Neuren has its headquarters in Australia and has oriented its research towards developing therapies that could change the lives of those affected by conditions like Rett syndrome and Fragile X syndrome. By adopting a strategic approach that combines cutting-edge science with a relentless focus on unmet needs, Neuren positions itself uniquely through its proprietary compounds such as trofinetide and NNZ-2591, which are at the core of its research endeavors. The company's business model hinges on a dual approach: developing its own drugs while simultaneously fostering partnerships with larger pharmaceutical companies to bring these therapies to market. This model allows Neuren to share the substantial costs and risks inherent in drug development while benefiting from the expanse of its partners' distribution networks and market insights. Revenue generation kicks in primarily through milestone payments, royalties, and licensing agreements as these partners help navigate the rigorous phases of clinical trials and regulatory approvals. Financial stability is thus intricately tied to clinical successes and strategic alliances, allowing Neuren to balance the speculative nature of biotech investments with the promise of transformative medical breakthroughs.

NEU Intrinsic Value
11.52 AUD
Overvaluation 5%
Intrinsic Value
Price AU$12.17
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