Investment Thesis for Galectin Therapeutics, Inc. (NASDAQ: GALT)
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Date
2016-06
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Publisher
Institute for Applied Economics, Global Health, and the Study of Business Enterprise
Abstract
This working paper is an in-depth analysis of Galectin Therapeutics, Inc. Our analysis examines the economic factors that impact GALT’s underlying business and how GALT has adapted to these everchanging factors. This economic analysis is then combined with our proprietary Net present value (NPV) model to determine GALT’s financial position. The NPV model will be presented along-side Monte-Carlo simulations to reveal the distribution of probable free cash flows and the likelihood of future earnings. In addition to these quantitative factors, we also examine the compensation plans of GALT’s executives to assess alignment with shareholders. At the conclusion of this analysis, it is our intention for readers to understand GALT’s business plan and the company’s financial standing to arrive at a sound investment decision.
Description
The Studies in Applied Finance series is under the general direction of Prof. Steve H. Hanke, Co-Director of the Johns Hopkins Institute for Applied Economics, Global Health, and Study of Business Enterprise (hanke@jhu.edu) and Dr. Hesam Motlagh (hesamnmotlagh@gmail.com), a Fellow at the Johns Hopkins Institute for Applied Economics, Global Health, and Study of Business Enterprise.
This working paper is one in a series on applied financial economics, which focuses on company valuations. The authors are mainly students at the Johns Hopkins University in Baltimore who have conducted their work at the Institute as undergraduate researchers.
Keywords
investment thesis, finance, Galectin Therapeutics, financial modeling, discounted cash flow, net present value, Monte-Carlo simulation, management compensation