* Note: Prices are in Million (M) USD.
Description:
Tempus AI, Inc. (Ticker: TEM) is a pioneering healthcare technology firm headquartered in Chicago, Illinois, committed to enhancing medical decision-making through the integration of artificial intelligence and advanced data analytics. By combining genomic sequencing with extensive clinical data, Tempus is at the forefront of precision medicine, particularly in oncology, ultimately aiming to improve patient outcomes significantly. With the healthcare industry increasingly embracing technology-driven solutions, Tempus's innovative platform and strategic focus on transforming healthcare practices make it an attractive investment opportunity for institutional investors seeking to leverage growth in this dynamic sector.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $656 M
Debt : $1,258 M
EBITDA : $-90 M
Net Debt (Debt - Cash): $602 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Services-computer programming, data processing, etc.
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 6 overlapping fiscal years (max 20).Average Free Cash Flow: $-204 M
Average Revenue: $342 M
Revenue Converted To Free Cash Flow (%): -59.6%
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): $693 M
Revenue 5 Years Ago (2019-12-31): $62 M
Total Growth over 5 Years: 1,017.4%
5-Year Revenue CAGR (Historical): 62.0%
Forward 5-Year CAGR (Tapered): 31.0%
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): $162 M
Share Count 5 Years Ago (2020-12-31): $170 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.47
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.47
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:
Insufficient valid ROE years (found 1; need ≥ 3). Dropping ROE-based PE.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $64.37
52-Week Low: $31.36
Threshold Price (15% Above 52-Week Low): $36.06
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: $11,068 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% 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 17 points to above Tempus AI, Inc. Class A Common Stock (TEM) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE 50.00 (>2× median)
Further research is recommended; please use your own due diligence.
In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Fair Value PE 20, Industry Based PE 20, Growth Based PE 50, Risk-Free Anchored PE (25% MoS) 18.34. Based on these 4 values, average assigned is 27.08. The fair value of Tempus AI, Inc. Class A Common Stock (TEM) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
