* Note: Prices are in Million (M) USD.
Description:
Harrow Health, Inc. is an ophthalmology-focused healthcare company. The company is headquartered in San Diego, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $53 M
Debt : $223 M
EBITDA : $32 M
Net Debt (Debt - Cash): $170 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Health care
Industry: Drug manufacturers - specialty & generic
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 28.51
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $-15 M
Average Revenue: $35 M
Revenue Converted To Free Cash Flow (%): -44.7%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $200 M
Revenue 5 Years Ago (2019-12-31): $51 M
Total Growth over 5 Years: 290.1%
5-Year Revenue CAGR (Historical): 31.3%
Forward 5-Year CAGR (Tapered): 15.6%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $36 M
Share Count 5 Years Ago (2020-12-31): $26 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.47
Trailing 12-Month Earnings Per Share (EPS): $0.75
Average Earnings Per Share (EPS): $1.61
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 17 valid ROE years (max 20).Average ROE: -296.4%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $45.9
52-Week Low: $20.85
Threshold Price (15% Above 52-Week Low): $23.98
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,382 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 10 points to above Harrow Health Inc (HROW) stock.
Last 1 Years Avg PE
9.64, Fair Value PE
12, Industry Based PE
15, Growth Based PE
15.65, Risk-Free Anchored PE (25% MoS)
18.2. Based on these 5 values, average assigned is
14.10. Value-Trades has assined P/E value
14.10. An average (Current Year EPS + Next Year EPS) earning per share is
$1.61.
Fair value using multiple P/Es (blended): $22.70 (PE 14.10 × EPS $1.61)
So the Final Fair Value is: $22.70
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $1.61
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 51.87 | $83.51 |
| 1 Yrs Avg-PE | 9.64 | $15.52 |
| Value-Trades Assigned | 14.1 | $22.70 |
Note: Only 1 years of reliable P/E data available. Fair value is calculated using blended models to reduce bias.
