GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » PMV Pharmaceuticals Inc (NAS:PMVP) » Definitions » ROIC %

PMV Pharmaceuticals (PMV Pharmaceuticals) ROIC % : -137.96% (As of Dec. 2023)


View and export this data going back to 2020. Start your Free Trial

What is PMV Pharmaceuticals ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. PMV Pharmaceuticals's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -137.96%.

As of today (2024-05-12), PMV Pharmaceuticals's WACC % is 11.77%. PMV Pharmaceuticals's ROIC % is -187.52% (calculated using TTM income statement data). PMV Pharmaceuticals earns returns that do not match up to its cost of capital. It will destroy value as it grows.


PMV Pharmaceuticals ROIC % Historical Data

The historical data trend for PMV Pharmaceuticals's ROIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PMV Pharmaceuticals ROIC % Chart

PMV Pharmaceuticals Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial -1,134.07 -1,081.01 -304.04 -251.70 -208.62

PMV Pharmaceuticals Quarterly Data
Dec18 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -339.35 -346.90 -208.16 -137.69 -137.96

Competitive Comparison of PMV Pharmaceuticals's ROIC %

For the Biotechnology subindustry, PMV Pharmaceuticals's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


PMV Pharmaceuticals's ROIC % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, PMV Pharmaceuticals's ROIC % distribution charts can be found below:

* The bar in red indicates where PMV Pharmaceuticals's ROIC % falls into.



PMV Pharmaceuticals ROIC % Calculation

PMV Pharmaceuticals's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-80.132 * ( 1 - -0% )/( (26.727 + 50.093)/ 2 )
=-80.132/38.41
=-208.62 %

where

PMV Pharmaceuticals's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-75.608 * ( 1 - 0.01% )/( (59.501 + 50.093)/ 2 )
=-75.6004392/54.797
=-137.96 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


PMV Pharmaceuticals  (NAS:PMVP) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, PMV Pharmaceuticals's WACC % is 11.77%. PMV Pharmaceuticals's ROIC % is -187.52% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


PMV Pharmaceuticals ROIC % Related Terms

Thank you for viewing the detailed overview of PMV Pharmaceuticals's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


PMV Pharmaceuticals (PMV Pharmaceuticals) Business Description

Traded in Other Exchanges
N/A
Address
1 Research Way, Princeton, NJ, USA, 08536
PMV Pharmaceuticals Inc is a precision oncology company. The company is engaged in the research and development of small molecule, tumor-agnostic therapies targeting p53 mutations, which has the ability to eliminate cancer cells.
Executives
Orbimed Advisors Llc 10 percent owner 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
Leila Alland officer: Chief Medical Officer C/O PMV PHARMACEUTICALS, INC., 8 CLARKE DRIVE, SUITE 3, CRANBURY NJ 08512
Deepika Jalota officer: SVP, Regulatory Affairs and QA C/O PMV PHARMACEUTICALS, INC., 8 CLARKE DRIVE, SUITE 3, CRANBURY NJ 08512
Carol Giltner Gallagher director C/O ATARA BIOTHERAPEUTICS, INC., 3260 BAYSHORE BOULEVARD, BRISBANE CA 94005
Orbimed Capital Gp V Llc 10 percent owner 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
Orbimed Genesis Gp Llc 10 percent owner 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
Orbimed Capital Llc 10 percent owner 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
Kirsten Flowers director C/O KURA ONCOLOGY, INC., 12730 HIGH BLUFF DRIVE, SUITE 400, SAN DIEGO CA 92130
Thilo Schroeder director, 10 percent owner C/O NEXTECH INVEST LTD., BAHNHOFSTRASSE 18, ZURICH V8 8001
Arnold J Levine director C/O JAN STERN REED BAXTER INTERNATIONAL, ONE BAXTER PARKWAY DF2 2W, DEERFIELD IL 60015
Winston Kung officer: COO, CFO C/O PMV PHARMACEUTICALS, INC., 8 CLARKE DRIVE, SUITE 3, CRANBURY NJ 08512
David Henry Mack director, officer: President and CEO ONE EMBARCADERO CENTER, SUITE 3700, SAN FRANCISCO CA 94111
Euclidean Capital Llc 10 percent owner 160 FIFTH AVE, 9TH FL, NEW YORK NY 10010
James H Simons 10 percent owner RENAISSANCE TECHNOLOGIES LLC, 800 THIRD AVE, NEW YORK NY 10022
Greenland A Llc 10 percent owner C/O EUCLIDEAN CAPITAL LLC, 160 FIFTH AVE, 9TH FL, NEW YORK NY 10010

PMV Pharmaceuticals (PMV Pharmaceuticals) Headlines

From GuruFocus