Complete HROW Stock Valuation Analysis
Comprehensive intrinsic value analysis using 2 different methodologies
HROW DCF Analysis
HROW (Harrow Health, Inc.) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2022 (Historical) | 2023 (Historical) | 2024 (Historical) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $88.6M | $130.2M | $199.6M | $249.5M | $311.9M | $389.9M | $487.3M | $609.2M |
| Revenue Growth % | - | 47.0% | 53.3% | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% |
| EBIT | $-1.7M | $431.0K | $8.8M | $12.5M | $15.6M | $19.5M | $24.4M | $30.5M |
| EBIT Margin % | -2.0% | 0.3% | 4.4% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% |
| Tax Rate % | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% |
| NOPAT | $-1.3M | $323.3K | $6.6M | $9.4M | $11.7M | $14.6M | $18.3M | $22.8M |
| NOPAT Margin % | -1.5% | 0.2% | 3.3% | 3.8% | 3.8% | 3.8% | 3.8% | 3.8% |
| Capex | $7.8M | $152.6M | $38.7M | $25.1M | $29.8M | $35.4M | $42.0M | $49.9M |
| Capex / Revenue % | 8.8% | 117.2% | 19.4% | 10.1% | 9.6% | 9.1% | 8.6% | 8.2% |
| Depreciation | $3.7M | $12.3M | $14.5M | $17.4M | $21.7M | $27.2M | $33.9M | $42.4M |
| D&A / Revenue % | 4.1% | 9.5% | 7.3% | 7.0% | 7.0% | 7.0% | 7.0% | 7.0% |
| Change in NWC | $48.7M | $-9.5M | $-91342.9B | $-9.1M | $-9.1M | $-9.1M | $-9.1M | $-9.1M |
| NWC Change / Revenue % | 55.0% | -7.3% | -45759766.6% | -3.6% | -2.9% | -2.3% | -1.9% | -1.5% |
| Unlevered FCF | $-54.1M | $-130.4M | $91342.9B | $10.7M | $12.7M | $15.5M | $19.3M | $24.5M |
| UFCF % Chg. | - | -141.0% | 70048457.4% | -100.0% | 18.4% | 21.8% | 24.6% | 26.8% |
| FCF / Revenue % | -61.1% | -100.2% | 45759757.8% | 4.3% | 4.1% | 4.0% | 4.0% | 4.0% |
| Discount Factor | - | - | - | 0.944 | 0.891 | 0.840 | 0.793 | 0.748 |
| Present Value of FCF | - | - | - | $10.1M | $11.3M | $13.0M | $15.3M | $18.3M |
| Sum of PV of UFCF | - | - | - | $10.1M | $21.4M | $34.4M | $49.7M | $68.0M |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 6.9% |
| Tax Rate | 25.0% |
| After Tax Cost of Debt | 5.2% |
| Risk Free Rate | 4.40% |
| Market Risk Premium | 4.3% |
| Beta | 0.40 |
| Cost of Equity | 6.1% |
| Total Debt | $228.8M |
| Market Cap | $1.1B |
| Total Capital | $1.3B |
| Debt Weighting | 17.4% |
| Equity Weighting | 82.6% |
| WACC | 6.0% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $24.5M |
| Terminal Value | $723.4M |
| PV of Terminal Value | $541.4M |
| Cumulative PV of UFCF | $68.0M |
| Net Debt | $181.6M |
| Equity Value | $427.9M |
| Shares Outstanding | 35.7M |
| Implied Share Price | $12 |
| Current Share Price | $30 |
| Implied Upside/(Downside) | -59.3% |
Valuation Summary
$12.00
Implied Price
$29.50
Current Price
-59.3%
Upside/Downside
6.0%
WACC
HROW Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 7 peer companies in Healthcare
P/E Ratio
$-33.48
-213.5%
Peer Median: 55.3x
EV/EBITDA
$5.63
-80.9%
Peer Median: 11.1x
P/S Ratio
$29.50
+0.0%
Peer Median: 5.1x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for HROW's business model and current situation.
Multiple Comparison
| Multiple | HROW Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | -48.7x | 55.3x | 42.8x | -188.1% | Undervalued |
| EV/EBITDA | 67.8x | 11.1x | 20.7x | 511.7% | Overvalued |
| P/S Ratio | 5.1x | 5.1x | 6.7x | 0.0% | Fair Value |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $1.42B | 0.0x | 0.0x | 23.8x | |
| $0.97B | 30.8x | 11.1x | 0.8x | |
| $1.08B | 0.0x | 67.8x | 5.1x | |
| $0.97B | 22.6x | 5.3x | 1.5x | |
| $0.93B | 55.3x | 50.3x | 11.3x | |
| $0.89B | 0.0x | 0.0x | 0.0x | |
| $729.91B | 62.5x | 45.6x | 14.9x |