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AVXL
Anavex Life Sciences Corp
Price:  
8.46 
USD
Volume:  
1,238,349
United States | Biotechnology

Anavex Fair Value

-128.9 %
Upside

As of 2024-12-15, the Fair Value of Anavex Life Sciences Corp (AVXL) is -2.45 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 8.46 USD, the upside of Anavex Life Sciences Corp is -128.9%.

Note: valuation result may not be accurate due to the company's negative EPS.

8.46 USD
Stock Price
-2.45 USD
Fair Price
FAIR VALUE CALCULATION

Anavex Fair Value

Peter Lynch's formula is:

Anavex Fair Value
= Earnings Growth Rate x TTM EPS
Anavex Fair Value
= 5 x -0.49
Anavex Fair Value
= -2.45

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
09-201909-202009-202109-202209-20235Y Avg
Net income-26.29-26.28-37.91-47.98-47.51-37
YoY growth-52.4%0%-44.3%-26.6%1%-24.4%

Anavex Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Abbvie Inc306,3692.952.66-69.6%
Amgen Inc145,4667.939.35-85.5%
Regeneron Pharmaceuticals Inc80,36342.41,058.944.8%
Inhibrx Inc212113.4566.933777.8%

Anavex Fair Value - Key Data

Market Cap (mil)717
P/E-
Forward P/E-
EPS-0.49
Avg earnings growth rate-24.4%
TTM earnings-42

Anavex Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.