PepGen 404280DR7 Bond
| PEPG Stock | USD 5.05 0.05 0.98% |
At this time, PepGen's Interest Debt Per Share is most likely to slightly decrease in the upcoming years. The PepGen's current Debt To Assets is estimated to increase to 0.03, while Short and Long Term Debt Total is projected to decrease to roughly 17.9 M. . PepGen's financial risk is the risk to PepGen stockholders that is caused by an increase in debt.
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.02099936 | Current Value 0.0256 | Quarterly Volatility 0.00117314 |
PepGen |
Given the importance of PepGen's capital structure, the first step in the capital decision process is for the management of PepGen to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of PepGen to issue bonds at a reasonable cost.
| Popular Name | PepGen HSBC Holdings PLC |
| Specialization | Pharmaceuticals, Biotechnology & Life Sciences |
| Equity ISIN Code | US7133171055 |
| Bond Issue ISIN Code | US404280DR76 |
| S&P Rating | Others |
| Maturity Date | 3rd of November 2028 |
| Issuance Date | 3rd of November 2022 |
| Coupon | 7.39 % |
PepGen Outstanding Bond Obligations
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Understaning PepGen Use of Financial Leverage
PepGen's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures PepGen's total debt position, including all outstanding debt obligations, and compares it with PepGen's equity. Financial leverage can amplify the potential profits to PepGen's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if PepGen is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | -60.7 M | -63.7 M | |
| Short and Long Term Debt Total | 20.1 M | 17.9 M | |
| Short Term Debt | 6 M | 6.8 M | |
| Net Debt To EBITDA | 0.73 | 0.69 | |
| Debt To Equity | 0.03 | 0.03 | |
| Interest Debt Per Share | 0.13 | 0.20 | |
| Debt To Assets | 0.02 | 0.03 | |
| Total Debt To Capitalization | 0.03 | 0.03 | |
| Debt Equity Ratio | 0.03 | 0.03 | |
| Debt Ratio | 0.02 | 0.03 | |
| Cash Flow To Debt Ratio | (22.97) | (24.12) |
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When determining whether PepGen is a strong investment it is important to analyze PepGen's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact PepGen's future performance. For an informed investment choice regarding PepGen Stock, refer to the following important reports:Check out the analysis of PepGen Fundamentals Over Time. For more detail on how to invest in PepGen Stock please use our How to Invest in PepGen guide.You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PepGen. If investors know PepGen will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PepGen listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (2.98) | Return On Assets (0.35) | Return On Equity (0.66) |
The market value of PepGen is measured differently than its book value, which is the value of PepGen that is recorded on the company's balance sheet. Investors also form their own opinion of PepGen's value that differs from its market value or its book value, called intrinsic value, which is PepGen's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PepGen's market value can be influenced by many factors that don't directly affect PepGen's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PepGen's value and its price as these two are different measures arrived at by different means. Investors typically determine if PepGen is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PepGen's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.