Taking a Close Look at the Financial Metrics of the Nasdaq's most undervalued stock, Sunshine BioPharma (SBFM):
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Evaluations:
Stock Metrics
The way to judge whether a stock is undervalued or not,
can be "amateurly" attained in many ways.
Sure, media coverage certainly propels stocks to lofty, yet unearned heights. Just see NVDA, Tesla, Eli Lilly, Boeing, ETC.
(We'll show you proof shortly.)
Some firms solely use EPS (Earnings per share).
While reasonable, it does not take into account other things, such as debt, cash on hand and assets on hand, per share, etc. That is the BV (Book Value).
We've found the truth of Evaluation, (and we offer Professional Evaluations for a living btw) lies in the
Stock Metrics.
One finds the stock metrics in relation to another stock
in the same industry, such as Tesla vs GM.
You take the Market Cap(MC), divide by the BV,
and you have your "met": The number needed to compare companies' relative values compared to their stocks,
on an equal footing.
For example: GM has a $55.95 billion MC, $62.39 BV,
giving it a "Met" of 896,778,329 "X". It's market cap (MC) is 896,778,329x its BV. (Remember that, we'll use it later.)
Current stock price is $49.78, even at that HUGE "Met",
GM is undervalued, at only 79.78% of BV.
We can use this formula to compare to its rivals.
Tesla, for example: TSLA has a $684 billion MC, with just a $20.81BV, and $214 sp. Tesla's MET=$32,868,813,000X.
By stock price, it's QUITE overvalued, worth only 10.28% of its SP (share price). Using the met, we can squarely say that Tesla is 36.65x overvalued when compared to GM.
It is most appropriate to compare companies in their own industry. People love their cars. Autos will always be
the 2nd largest cost for most folks, next to a home.
So to show how undervalued SBFM is, let's use competitors in the pharma/drug space.
Eli Lilly & Co (LLY) has an MC of $912.43 billion,
a BV of $14.26/share, and an SP of $960.
LLY's met is 63,985,273,492x.
Compare it to smaller Pharma giant J&J (JNJ) with a MC
of $399.26 billion, BV of $29.72, SP of $165. JNJ's met=
1,343,405,114X. Meaning: LLY is 47.63X overvalued when compared to its rival JNJ. That LLY "met" would make JNJ's SP = $7,858.
Now, let's compare TEVA, a generic drug vendor, similar to SBFM. MC=$21.38 billion. BV is $5.61. SP=$18.87.
Teva's met =3,811,051,693X. 2.836x more overvalued than JNJ is, but LLY is 16.789x more overvalued than Teva.
So far, JNJ is valued the most reasonably of the 3, and GM is of all 5. These are the share prices JNJ would be if using the "mets" of the other 4:
LLY> $7,858.
TEVA>$468
TSLA>$4,038
GM> $110
​
As we all know, GM is not an overvalued company by BV,
so clearly we can assume, so far, that a "met" of 896.778 million is a reasonable number, as compared, so far.
​
Now, let's examine the other end of the spectrum,
to test our theory before showing you SBFM financials.
It's a company on paper near bankruptcy, if not in real life, as they continually dilute their shareholders, just to stay afloat.
StockAnalysis.com post this warning about MULN:​​
Finviz's financial stats for MULN:
OK, time to apply what you've learned, here, in this more
unique, precarious stock situation: MULN's met is only 6,688,073. SP is .215 So using the lowest of our 5 from above, MULN's SP should be $28.82.
Using the highest, LLY, it would be $2,056.92!!
Now, does this illustrate how insanely LLY is overvalued?
Perhaps quite clearly, but that's not the intent, here.
We're talking strictly math here, folks.
To recap: Mullen, with .10/sh cash left, one foot in Bankruptcy Court on paper, has a $.215 SP, $14.58m MC and a tiny 6,688,073X met.
After this next paragraph, we'll investigate SBFM to see where it stands, but read the back story, too:​
You know from above that A1 Financial offers Professional Evaluations--we also offer Loans, etc, but pertinent to the story, we offer Stock Portfolio Reviews, to "tweak" folks' retirement plans, and to eliminate their high fees those
fancy Brokerages charge.
In doing so, with one client, we came across a stock so INSANELY undervalued, we were SHOCKED.
Mortified is a better word.
We couldn't believe what we were seeing--So we dug deeper.
What we found was, in math terms, EARTH SHATTERING.
Usually stocks are over valued horribly, such as INTEL, you may have heard how it recently crashed hard.
We warn folks about these possibilities, as part of our service.
This one Nasdaq stock, is undervalued on paper by as much as 7 times, but by normal everyday SM evaluations,
THOUSANDS of times undervalued.
It's really quite unbelievable, yet--- there it is.
It has been shown by Finviz, the absolute best book value estimator of the Stock Market, which says normal book value is $20.06/sh, the share price is $2.80 right now.
We confirmed that BV, and even feel that is a low number, here's why:
We use a Stock's Book Value--Proper metrics to evaluate a Stock, and take into account catalysts, both positive and negative, on paper and in the media.
The company recently moved to Florida which just enacted a new generic drug law to help its Seniors save money, it means a many time multiple of earnings is at hand for SBFM.
The company has great financials, is flush with cash, and growing 54%-67% QoQ.
The SM is ignoring these facts for some unknown reason.
There are some warrants in existence, but they're being held back as collateral against a loan by Aegis, and the company hold tons of cash - 24 months worth, so no threat of dilution.
It's time to fix the Stock Market's ignorance, and benefit WILDLY from this oversight.
​
We're PUSHING to turn that "on paper" value into reality.
the drive begins to $50/sh by the end of Sept.
It deserves to reach $100/sh at least by the ER on Nov 11th.
Enter SBFM's financials, with a current $2.80/SP:
OK, back to work. SBFM's met =185,443. Yes, I can hear you from here, screaming at me "You MUST mean 185 million! a 1000x more!" No, Sir, Miss or Madam, it's correct. SBFM's "met" is the smallest in the entire Nasdaq, and it has relatively incredible financials, is almost profitable, has hardly any debt. It just gets little press. We thank InsiderMonkey for doing that nice article "Best Rated Penny Stock To Buy According to Analysts" to help us express our point here.
​
Again, as of this writing, SBFM's SP is $2.80.
Using the "mets" of the previous 5 stocks we've explored,
SBFM's SP would be:
MULN's> $100.98 per share (Remember, MULN is near bankruptcy, has .10 per share left...SBFM has 90x that.)
GM's> $4,835.87 per share
JNJ's> $7,53.80 per share
TEVA's> $20,574 per share
TSLA's>$177,520 per share
LLY's>$345,456 per share
​We promised you Boeing, (BA) but since they have a -$29 BV, we had to improvise, the closest we could come up with would be:
BA's>$4,719,958 per share. (Wow. Never buying Boeing, ever.)
--Lastly, Nvidia: $18,708,871. It's true. You have the formula,
you can now see by the math. Sure, NVDA is overvalued. Clearly. But SBFM is more undervalued per share than NVDA is overvalued, looking at the whole picture, of both companies.
-Let's do just one more. The most "hated" stock by Hedge Funds, most shorted Pharma stock, that has been for many months, is Arca BioPharma, (ABIO-$2.47/sh) without a doubt.
There's no close second. They have no sales at all, burning cash ferociously:
ABIO's met is a small 15,475,555. Even this quite distressed
pharma stock's met would give SBFM a SP of $233.66.
​
We hope these findings help you improve your portfolio,
if you do it yourself, or are looking to open a new account.
At this insanely low price, SBFM would be a very smart addition in to anyone's portfolio, in our educated opinion, based upon
what we've shown you, these multiple reasons and catalysts:
​
-Lowest "met" in the entire SM by far.
-Just added 9 more drugs for sale to increase their list to 61, with
Niopeg a soon 62nd.
-Niopeg is launching very soon to compete in Neulasta's $88 million market. Neulasta's list price is $6,417.99 per dose. Niopeg will be sold at a welcome discount to this, "stealing" much of their market.
-Nearing profitability
-Extremely low 1.22 m share float
-Florida's new law allowing generic drug sales from Canada (Nora Pharma is in Canada, owned by Florida company Sunshine BioPharma.)
-$9.35 in cash per share on hand, 24 months' worth, with profitability quite close.
-Cancer drugs, Covid drugs in the works.
-$20.06 book value
-$15 InsiderMonkey realistic short term price target
-Using fellow pharma company LLY's metric, SBFM would be $345,456 per share.
-Using chip maker NVDA's, it would be $18,708,871 per share.
-Using a similar generic drug company's, TEVA's metric, would make SBFM be $20,574 per share.
-On the lowest end, an auto company near bankruptcy
would make it $100.98 per share (MULN).
​
I hope we made our point clear to everyone:
The Stock Market is fickle and irrational.
Always invest at your own risk, you never know what can happen. As media has shown, getting the name out is important,
so please share this story with everyone you know,
post and repost everywhere you can.
​​
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