eResearch is pleased to publish a Valuation Research Report on StageZero Life Sciences Ltd. (TSX:SZLS | OTC:GNWSF | FSE:61N1 ) that pegged the Company’s stock price valuation between $0.67 and $14.14.
You can download our 27-page Valuation Research Report by clicking on the following link: StageZero (TSX:SZLS) Valuation Report 2021-06-26
COMPANY DESCRIPTION:
StageZero Life Sciences develops and commercializes proprietary molecular diagnostic tests for the early detection of diseases and personalized health management with a primary focus on cancer-related indications.
The Company’s first product was ColonSentry®, a blood test to determine an individual’s current risk for having colorectal cancer.
In April, StageZero commercially launched Aristotle®, the first-ever multi-cancer panel that simultaneously screens for 10 cancers from a single sample of blood with high sensitivity and specificity for each cancer.
At the same time, StageZero announced the acquisition of Health Clinics and Care Oncology to launch an early cancer diagnostic program under the trade name AVRT that is based on Aristotle®.
In the midst of last year’s pandemic, StageZero expanded its offerings by launching a new COVID-19 testing service, offering both the serology and lab-based polymerase chain reaction (PCR) tests, and a saliva-based PCR test.
StageZero’s full service, telehealth platform includes access to physicians and phlebotomists who can prescribe and draw samples for individuals and groups.
VALUATION SUMMARY:
The Valuation Report use three valuation methodologies to calculate the price per share for StageZero: (1) Comparative Company Analysis using Revenue, (2) Prior Mergers and Acquisitions Analysis, and (3) Discounted Cash Flow.
VALUATION ASSUMPTIONS:
The methodologies used the following assumptions:
- 2021 Revenue Estimate:
- US$16.7 million
- StageZero Aristotle® testing revenue commences in Q3/2021
- StageZero closes the acquisition of the Health Clinics Companies in 2021
- 1-Year Forward Revenue Estimate: US$23.0 million
- Revenue Growth
- 2022E: 100%
- 2023E: 50%
- 2024E: 40%
- 2025E: 25%
- EBITDA Margins
- 2021E: 5%
- 2022E: 17%
- 2023E: 21%
- 2024E: 22%
- 2025E: 24%
STOCK PRICE VALUATION SUMMARY:
Using a 1-Year Forward Revenue Estimate of US$23.0 million as a baseline, and
- Revenue Multiples: We estimate that StageZero’s stock price should be in the range of $1.24 to $3.99;
- Prior Mergers & Acquisitions (M&A): We estimate that StageZero’s stock price should be in the range of $0.67 to $14.14;
- The Discounted Cash Flow (DCF) Method: We estimate that StageZero’s stock price should be $3.18 in one year.
The estimates are well above StageZero’s current stock price of $0.48 and illustrate the potential for upside movement.
These results are summarized in Figure 1 below.
You can download the full 27-page Valuation Research Report by clicking on the following link: StageZero (TSX:SZLS) Valuation Report 2021-06-26
FIGURE 1: Summary of Stock Price Valuations
Notes: All numbers in USD unless otherwise stated. The author of this report, and employees, consultants, and family of eResearch may own stock positions in companies mentioned in this article and may have been paid by a company mentioned in the article or research report. eResearch offers no representations or warranties that any of the information contained in this article is accurate or complete. Articles on eresearch.com are provided for general informational purposes only and do not constitute financial, investment, tax, legal, or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this information should consult with a financial advisor. The article may contain “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements are based on the opinions and assumptions of the Company’s management as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein. Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Please read eResearch’s full disclaimer.
