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QUANTITATIVE STOCK REPORT | September 03, 2018 | NasdaqGM : VSTM

Verastem, Inc.
Recommendation [as of August 31, 2018]: HOLD
Risk Evaluation: HIGH Price: 9.960 (Aug 31, 2018 close) Trading Currency: USD Country: United States

GICS Sector: Health Care Sector Ranking: Marketweight SPGMI's Quality Ranking: NR
GICS Industry: Biotechnology
Business Summary: Verastem, Inc., a biopharmaceutical company, focuses on developing and commercializing drugs for the treatment of cancer. Its programs target
the focal adhesion kinase (FAK) and the phosphoinositide 3-kinase (PI3K) signaling pathways. The company's lead FAK inhibitor is defactinib, an orally available contd...

Quantitative Model Drivers [as of August 31, 2018] Price Performance


Recommendation: HOLD
Neut ral
Valuation

Negat ive
Quality

Posit ive
Growth

Financial Negat ive


Health

Street Negat ive


Sentiment

Price Posit ive


Momentum

Relative Strength vs As Reported Earnings vs Total Return[%CAGR] YTD 1Yr 3Yr 5Yr
Risk Evaluation : HIGH Index Previous Year
NasdaqGM:VSTM 469.2 154.1 18.0 -6.1
40-Week Mov. Avg. Up Down No Change
Asset/Market Size Risk High
Peer Average 114.3 145.1 -.9 1.2
Volume Quantitative Ranking
Financial Leverage Risk Moderate
Below Avg. Above Avg. S&P 500 15.1 19.4 16.5 14.4
Price Volatility Risk High
Liquidity Risk Moderate Quantitative Rankings: SB = Strong Buy, H = Hold, SS = Strong Sell
Past performance is not an indication of future performance and should not be relied upon as such.
Source: CFRA, S&P Global Market Intelligence (SPGMI)

Model Ranking Commentary

NasdaqGM: VSTM's HOLD recommendation is based on its score from CFRA's quantitative model for the United States.
Growth and Valuation model sub-categories are the largest positive and negative drivers, respectively, of the HOLD recommendation.
Growth includes factors that measure EPS growth and stability and cash flow growth and stability.
Valuation includes factors such as price to earnings, price to EBITDA, and price to cash flow.
NasdaqGM: VSTM's overall score ranked in the 70th percentile of all stocks in the model universe (1 = best and 100 = worst).

Key Statistics Dividend Data Currency: USD Payment Details


Market Cap (Mln of USD) 733.0 -No Dividend Data Available
5Yr Low 5Yr Hi
52-Wk Range (USD) 2.770 - 10.030
Indicated Rate/
Value of USD 10K Invested 5 Yrs ago 7,291 Share
Beta vs S&P 500 2.65 Yield [%] Nil
Common Shares Outstanding(Mln) 73.6 Payout Ratio
NM NM NM
Average Daily Volume (Mln) 2.846 [%]

Insider Ownership(%) 3.31

Compound Annual Growth Rates 5 year P/E Ratio Comparisons [forward 12-month Diluted EPS estimates]
Revenue - %CAGR Current
Company NasdaqGM:VSTM -9.8
Peer Average 181.9 14.9 1.4 Peer Average NA
S&P 500 8.9 4.0 3.1 S&P 500 17.3
Operating EPS - %CAGR 5-Year Average
Company 35.4 -3.9 -1.7 NasdaqGM:VSTM NA
Peer Average -29.2 -27.3 -5.6 Peer Average NA
S&P 500 18.0 8.6 6.1 S&P 500 17

This document is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the 1
particular needs of any specific person who may receive this report. Refer to important disclosures at the end of this report. Source: CFRA, S&P Global Market Intelligence (SPGMI)
QUANTITATIVE STOCK REPORT | September 03, 2018 | NasdaqGM : VSTM
Verastem, Inc.
Recommendation [as of August 31, 2018]: HOLD
Risk Evaluation: HIGH Price: 9.960 (Aug 31, 2018 close) Trading Currency: USD Country: United States

EPS Per Share and Revenues [Millions USD, except per share] Key Profitability Ratios
Fiscal year ends Dec 31 2013 2014 2015 2016 2017 LTM
EPS Quarterly - Actual & Estimated Q3'17 Q4'17 Q1'18 Q2'18 Q3'18E %
%Yr.-Yr. Operating NA NA NA NA NA -801.4
-190.5 -30.3 -17.1 -28.6 43.4
Chg. Margin
%
-84.8 -1.2 -3.8 -29.2 - Peer
Surprise -1781.6 -749.1 -2654.6 -3022.1 -1566.3 -1561.5
Average
No. of
4 6 6 6 4 % Net
Analysts NA NA NA NA NA -807.8
Margin
EPS Annual - Actual & Estimated 2015 2016 2017 2018E 2019E
Peer
%Yr.-Yr. -1845.0 -584.6 -2704.9 -3023.5 -1589.5 -1531.5
22.2 38.5 -77.8 -1.7 43.4 Average
Chg.
No. of % Return
7 3 6 1 4 on -24.9 -32.5 -38.0 -26.5 -58.5 -49.5
Analysts
Capital
Peer
-33.5 -41.7 64.5 426.0 -80.5 -49.4
Average
Revenues Quarterly - Actual & Estimated Q3'17 Q4'17 Q1'18 Q2'18 Q3'18E
%Yr.-Yr. % Cash
� � � â � Flow to NA NA NA NA NA NA
Chg.
No. of Sales
5 7 7 7 6 Key Valuation Ratios
Analysts Peer
-1948.1
2012-661.8
2013-1614.6
2014 -2406.4 -1482.0
2015 2016 Current NA
Average
Fwrd P/E -
NA NM NM NM NM NM
High
Revenues Annual - Actual & Estimated 2015 2016 2017 2018E 2019E
%Yr.-Yr. Fwrd P/E -
� � � â 267.6 NA NM NM NM NM
Chg. Low
No. of Peer Average NA 38.2 51.1 48.4 48.7 10.6
8 4 7 3 6
Analysts
Avg
NA NA NA 0.9 1.0 NM
EV/EBITDA
Peer Average NA 22.3 29.1 30.2 0.6 9.1
Avg Price to
Source: S&P Global Market Intelligence NA NA NA NA NA 47.8
Sales
Note: EPS & Revenues in graphs above may represent analyst-adjusted actuals and estimates and therefore may not match numbers in the
financial data presentation below. Peer Average NA 9.8 16.7 21.0 47.4 21.0
Avg Price to
NA 2.8 2.4 1.9 0.5 5.8
Book
Peer Average NA 9.5 7.0 8.2 3.5 6.8

Income Statement, Cash Flow and Balance Sheet Data (Millions USD, except per share) Fiscal Year Ending: Dec. 31 .
2010 2011 2012 2013 2014 2015 2016 2017
Revenue NA NA NA NA NA NA NA NA
Operating Income -1.9 -13.7 -32.2 -41.4 -53.6 -58.2 -37.0 -67.8
Net Income -1.9 -13.7 -32.0 -41.2 -53.4 -57.9 -36.4 -67.8
Operating Cash Flow -0.8 -9.4 -22.6 -26.3 -36.9 -45.6 -29.5 -57.3
Capital Expenditures 0.019 0.785 0.310 0.056 2.429 0.211 0.039 NA
Earnings Per Share -2.22 -10.59 -1.70 -1.82 -2.07 -1.61 -0.99 -1.76
Dividends Per Share NA NA NA NA NA NA NA NA
Dividend Payout Ratio Nil Nil Nil Nil Nil Nil Nil Nil
Free Cash Flow Per Share -0.95 -7.84 -1.22 -1.16 -1.52 -1.27 -0.80 NA
Cash and Short Term Investments 3.6 47.8 56.6 101.3 92.7 110.3 80.9 86.7
Long Term Debt NA NA NA NA NA NA NA 14.8
Total Debt Nil Nil Nil Nil Nil Nil Nil 14.8
Common Equity -0.7 -12.8 90.5 117.4 88.8 102.5 72.3 57.7
Note: Data may be restated; before results of discontinued operations/special items. Per share data adjusted for stock dividends as of ex-dividend date.
NA = Not Available. NM = Not Meaningful.
Source: S&P Global Market Intelligence (SPGMI)

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QUANTITATIVE STOCK REPORT | September 03, 2018 | NasdaqGM : VSTM
Verastem, Inc.
Recommendation [as of August 31, 2018]: HOLD
Risk Evaluation: HIGH Price: 9.960 (Aug 31, 2018 close) Trading Currency: USD Country: United States

Peer Group Comparison


Recent
Stk.Mkt.Cap Stock 52 Week Dividend Fwrd P/B Return On Return On LTD to
Peer Group Stock Symbol (Mln USD) Beta Price[USD] Low/High[USD] Yield[%] P/E Ratio Ranking 1 Revenue[%] Equity[%] Cap[%]
Verastem, Inc. NasdaqGM:VSTM 732.98 2.65 9.96 2.88/9.97 Nil NM 5.8 Hold NM -92.3 15.5
ArQule, Inc. NasdaqGM:ARQL 721.46 0.99 6.63 1.01/6.81 Nil NM 23.4 Hold -88.6 -84.7 34.9
Curis, Inc. NasdaqGM:CRIS 56.41 1.12 1.7 1.38/10.8 Nil NM 7.9 Hold NM NM 69.1
Epizyme, Inc. NasdaqGS:EPZM 820.14 1.8 11.8 9.5/20.1 Nil NM 4.0 Sell NM -77.0 NM
KalVista
Pharmaceuticals, NasdaqGM:KALV 215.10 NA 17.1 6.69/17.9 Nil NM 6.8 Strong Buy NM -54.0 0.2
Inc.
Leap Therapeutics,
NasdaqGM:LPTX 108.34 NA 7.37 4.99/10.01 Nil NA 8.9 NA - NM -
Inc.
Miragen
NasdaqCM:MGEN 190.95 NA 6.21 5.38/10.5 Nil NM 2.8 Sell NM -47.0 12.6
Therapeutics, Inc.
Mirati
NasdaqGS:MRTX 1,829.88 1.97 56.55 4.75/62.7 Nil NM 7.4 Sell NM -46.7 -
Therapeutics, Inc.
Syros
Pharmaceuticals, NasdaqGS:SYRS 413.61 -2.05 12.29 8.45/17.48 Nil NM 3.8 Hold NM -57.7 NM
Inc.
ZIOPHARM
NasdaqCM:ZIOP 412.25 1.37 2.92 2.26/6.54 Nil NM NM Sell NM 73.2 -
Oncology, Inc.
1 Quantitative Rankings : Strong Buy , Buy , Hold , Sell , Strong Sell ; Qualitative Rankings(STARS) : 5 = Strong Buy , 4 = Buy , 3 = Hold , 2 = Sell , 1 = Strong Sell

Rankings are not predictive of future performance. For full definitions of Rankings, see the glossary section of this report.
Note: Peer Group selection is performed using CFRA's proprietary peer ranking system. Peers are selected based on factors such as similarity of analyst coverage, industry, size, and region. The subject
company is ranked against a universe of companies ( the "Universe") which has been compiled by CFRA and consists of a list of companies with similar characteristics, but may not include all the companies
within the same industry and/or that engage in the same line of business. The subject company and some of the companies in the Peer Group may be ranked by two different ranking systems. For the purpose
of the overall ranking/recommendation, the subject company is ranked against all the companies in the Universe and not necessarily against the companies listed in the Peer Group.

Wall Street Consensus Estimates


Estimates 2017 2018 2019

Fiscal Years Avg Est. High Est Low Est. # of Est. Est. P/E
2019 -1.01 -0.64 -1.45 4 NM
2018 -1.79 -1.79 -1.79 1 NM
2019 vs. 2018 44% 64% 19% 300% NA

Source: S&P Global Market Intelligence (SPGMI)


Forecasts are not reliable indicator of future performance.
Note: A company's earnings outlook plays a major part in any investment decision. S&P Global Market Intelligence organizes the
earnings estimates of over 2,300 Wall Street analysts, and provides their consensus of earnings over the next two years, as well
as how those earnings estimates have changed over time. Note that the information provided in relation to consensus
estimates is not intended to predict actual results and should not be taken as a reliable indicator of future performance.

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QUANTITATIVE STOCK REPORT | September 03, 2018 | NasdaqGM : VSTM
Verastem, Inc.
Recommendation [as of August 31, 2018]: HOLD
Risk Evaluation: HIGH Price: 9.960 (Aug 31, 2018 close) Trading Currency: USD Country: United States

Business Summary Corporate Information


Verastem, Inc., a biopharmaceutical company, focuses on developing and commercializing drugs for the treatment Investor Contact
of cancer. Its programs target the focal adhesion kinase (FAK) and the phosphoinositide 3-kinase (PI3K) signaling J. Chiapponi ( 781-292-4200 )
pathways. The companyâs lead FAK inhibitor is defactinib, an orally available candidate for combination therapy with Office
immuno-oncology agents and other anti-cancer compounds. Its defactinib is in Phase 1b study for the treatment of 117 Kendrick Street
pancreatic cancer, as well as in Phase 1/2 clinical trial for the treatment of ovarian cancer, non-small cell lung Suite 500
cancer, mesothelioma, and pancreatic cancer. The company also engages in developing duvelisib, an investigational Needham
oral therapy that targets the PI3K signaling pathway, as well as attacks malignant B-cells and T-cells and disrupt Massachusetts
the tumor microenvironment to help thwart their growth and proliferation for patients with hematologic cancers
02494
through the dual inhibition of PI3K delta and gamma. Its duvelisib is in Phase 3 randomized and late-and mid-stage
clinical trials for the treatment of patients with relapsed or refractory chronic lymphocytic leukemia or small United States
lymphocytic lymphoma, as well as completed the Phase 2 study for the treatment of patients with double-refractory Needham , Massachusetts 02494
indolent non-Hodgkin lymphoma. The company has license agreements with Infinity Pharmaceuticals, Inc.; and United States
Pfizer, Inc. Verastem, Inc. was founded in 2010 and is headquartered in Needham, Massachusetts. Telephone
781-292-4200
Key Developments Web Site
Oct-02-2018 Company Conference Verastem, Inc. Presents at Cantor Fitzgerald Global Healthcare Conférence, www.verastem.com
Presentations Oct-02-2018 01:05 PM Key Officers
Aug-29-2018 Executive Changes - Verastem Oncology Appoints Robert E. Gagnon as Chief Financial Officer Chief Financial Officer
CFO R. E. Gagnon
Founder and Consultant
Aug-08-2018 Announcements of Verastem, Inc. Reports Unaudited Consolidated Earnings Results for Second
R. H. Aldrich
Earnings Quarter and Six Months Ended June 30, 2018
Co-Founder and Chair of Scientific Advisory Board
Jul-24-2018 Follow-on Equity Verastem, Inc. has filed a Follow-on Equity Offering in the amount of R. A. Weinberg
Offerings $26.589865 million. Co-Founder
Jul-10-2018 Company Conference Verastem, Inc. Presents at The Oppenheimer Boston Oncology Insight P. B. Gupta
Presentations Summit, Jul-10-2018 Co-Founder
M. Dipp
Jun-14-2018 Follow-on Equity Verastem, Inc. has completed a Follow-on Equity Offering in the amount of Chief Scientific Officer
Offerings $42.999996 million.
J. Pachter
Jun-14-2018 Company Conference Verastem Oncology Presents at 23rd Congress of the European Hematology Consultant
Presentations Association, Jun-14-2018 J. B. Green
Jun-01-2018 Executive Changes - Verastem, Inc. Announces Management Changes Consultant
CFO L. Vaickus
Vice President of Translational Medicine
May-24-2018 Company Conference Verastem, Inc. Presents at 3rd Annual Advances in Immuno-Oncology D. T. Weaver
Presentations Congress, May-24-2018
Head of Hematology and Oncology Development
May-18-2018 Follow-on Equity Verastem, Inc. has completed a Follow-on Equity Offering in the amount of H. Youssoufian
Offerings $35.000001 million. Vice President of Commercial Operations
May-16-2018 Annual General Verastem, Inc., Annual General Meeting, May 16, 2018 M. Ferraresso
Meeting Director of Corporate Development
B. Sullivan
May-03-2018 Announcements of Verastem, Inc. Reports Unaudited Consolidated Financial Results for the First COO, Principal Financial Officer & Principal Accounting
Earnings Quarter Ended March 31, 2018; Provides Earnings Guidance for 2019 Officer
May-02-2018 Analyst/Investor Day Verastem, Inc. - Analyst/Investor Day D. W. Paterson
Chief Medical Officer
Apr-09-2018 Company Conference Verastem, Inc. Presents at H. C. Wainwright Global Life Sciences Conference,
Presentations
N. T. Le
Apr-09-2018 11:05 AM
Chief Strategy Officer
Mar-27-2018 Company Conference Verastem, Inc. Presents at Needham and Company 17th Annual Healthcare S. H. Bloom
Presentations Conference, Mar-27-2018 05:00 PM Executive VP & Chief Commercial Officer
Mar-20-2018 Company Conference Verastem, Inc. Presents at Oppenheimer 28th Annual Healthcare Conference, J. M. Lobacki
Presentations Mar-20-2018 08:00 AM Vice President of Corporate Communications
M. M. Lambertson
Mar-16-2018 Company Conference Verastem, Inc. Presents at B Riley FBR Inaugural China Healthcare Vice President of Finance, Treasurer and Secretary
Presentations Investment & Partnering Symposium, Mar-16-2018 03:00 PM
J. Chiapponi
Senior Vice President of Corporate Medical Affairs
N. Mirza
Vice President of Human Resources
C. Carew
President, CEO & Director
R. Forrester
Board Members
A. Lawton, B. Stuglik, B. Wendel, C. L. Cohen, E. J. Pezalla,
E. K. Rowinsky, G. I. Berk, L. A. Kunkel, M. G. Kauffman, M.
Wicha, P. A. Friedman, R. A. Weinberg, R. Forrester, S. A.
Sherwin, S. L. Phanstiel, T. J. Barberich
State of Incorporation
Delaware
Employees
4
69
Glossary
Quantitative Model Overall Recommendation and
drivers of the recommendation high risk. The overall risk evaluation represents the S&P Global Market Intelligence's Quality Ranking
CFRAs global quantitative stock reports provide a combined scores on these Risk categories, calculated (also known as S&P Global Market Intelligence's
5-tier recommendation assigning a Strong Buy, Buy, as an equal-weighted average of percentile ranks of Earnings & Dividend Rankings)- Growth and stability of
Hold, Sell, or Strong Sell recommendation based on a the 4 risk categories. The highest 40% of companies in earnings and dividends are deemed key elements in
series of quantitative inputs from four separate each universe receive a high risk ranking, the next 35% establishing S&P Global Market Intelligence's earnings
regional models: receive a moderate risk ranking and, the lowest 25% and dividend rankings for common stocks, which are
receive a low risk ranking. designed to capsulize the nature of this record in a
United States single symbol. It should be noted, however, that the
All investments carry some sort of risk and a low risk process also takes into consideration certain
Canada ranking represents a relative ranking of CFRA's adjustments and modifications deemed desirable in
assessment of the risk of investing in a company's establishing such rankings. The final score for each
Developed Europe
stock versus the risk of investing in other companies stock is measured against a scoring matrix determined
Developed Asia excluding Japan that are part of that company's universe. Therefore, a by analysis of the scores of a large and representative
low risk ranking should not be interpreted as an sample of stocks. The range of scores in the array of
Each of these regional models is based on between 25 absolute risk evaluation, but as a relative measurement this sample has been aligned with the following ladder
and 40 different investment factors (financial ratios), of the risk of investing in a company's stock. of rankings:
selected from S&P Global Market Intelligence's Alpha Sector Ranking A+ Highest B Below Average
Factor Library. CFRA's Investment Policy Committee (IPC) consists of A High B- Lower
To provide its recommendation, CFRA ranks a universe a team of five seasoned investment professionals. It A- Above Average C Lowest
of common stocks based on 5 measures or model meets weekly to discuss market trends and B+ Average D In Reorganization
categories: Valuation, Quality, Growth, Street projections, maintain an S&P 500 12-month forward
NR Not Ranked
Sentiment, and Price Momentum. In the U.S., a sixth price target, and make asset allocation/sector
sub-category for Financial Health will also be recommendations. The IPC establishes over, market,
displayed. and underweight recommendations on the 10 sectors
within the S&P 500. Overweight and underweight S&P Capital IQ Consensus Estimates
Within these categories, factors are chosen based on recommendations imply that the group expects these S&P Capital IQ Consensus Estimates represent the
their historical predictive strength (alpha) within the sectors to outperform or underperform the S&P 500 aggregation of individual estimates provided by
region and their correlation with other factors. Each during the coming six-to-12 month period, analysts that are covering a public company. A
regional model contains two separate sub-models; one respectively. A "marketweight" recommendation consensus number can be provided as either the mean
that uses factors specific to financial companies and indicates that the sector is expected to be a market or the median. The size of the company and the
one that focuses on non-financial companies. Due to performer during this same timeframe. The IPC amount of analyst coverage will determine the size of
the large number of banks in the U.S., the U.S. model analyses economic projections, fundamental forecasts, the group from which the Consensus is derived. All of
also has a third sub-model specifically for banks. technical considerations, and historical precedent the available analysts' estimates may not necessarily
when making such recommendations. Changes in be included in the Consensus. The Consensus will only
Each company within a region is grouped with a
recommendations can be made more frequently than include analysts' estimates that are based on the same
universe of stocks and receives a score on each of the
every six-12 months as market conditions evolve. methodology. Consensus Mean: The mathematical
five (or six in the U.S.) model categories. Percentile
Sector rankings will only be made available for sectors average of the detailed estimates after the appropriate
scores are used to compare each company to all other
in the S&P 500. If a ranking is not available, the value exclusions have been applied. Consensus Median: This
companies in the same universe for each model
will be N/A. represents the midpoint of the range of estimates that
category. The five (six) model category scores are then
are ranked from highest to lowest after the appropriate
weighted and rolled up into a single percentile ranking Qualitative STARS Ranking system and definition:
exclusions have been applied. If the number of
for that company. Rankings are then assigned 5-STARS (Strong Buy): estimates is even, then the average of the middle two
investment labels, as follows: Total return is expected to outperform the total return figures is the median.
Strong Buy: top 10% by model score of a relevant benchmark, by a wide margin over the
coming 12 months, with shares rising in price on an Global Industry Classification Standard (GICS)
Buy: next 20%
absolute basis. An industry classification standard, developed by
Hold: next 40%
4-STARS (Buy): Standard and Poor's in collaboration with Morgan
Sell: next 20% Stanley Capital International (MSCI). Under the GICS
Strong Sell: bottom 10% Total return is expected to outperform the total return
structure, companies are classified in one of 154
of a relevant benchmark over the coming 12 months,
sub-industries, which are grouped into 68 industries,
Risk Evaluation with shares rising in price on an absolute basis.
24 industry groups, and 10 economic sectors
Risk Evaluation is a relative ranking, which represents
3-STARS (Hold): (consumer discretionary, consumer staples, energy,
an assessment of the risk of investing in a company's
Total return is expected to closely approximate the financials, health care, industrials, information
stock relative to the risk of investing in other
total return of a relevant benchmark over the coming technology, materials, telecom services, and utilities).
companies' stocks in the same universe. To perform
this assessment the following risk categories are 12 months, with shares generally rising in price on an This four-tier structure accommodates companies
absolute basis. across the world and facilitates sector analysis and
evaluated:
investing.
2-STARS (Sell):
Asset/Market Size Risk Total return is expected to underperform the total
Financial Leverage Risk return of a relevant benchmark over the coming 12
Price Volatility Risk months, and the share price not anticipated to show a
Liquidity Risk gain.
1-STAR (Strong Sell):
Each company's stock is percentile ranked from 1 to
100 against the other companies within the universe Total return is expected to underperform the total
on each of the four risk categories mentioned above, return of a relevant benchmark by a wide margin over
with 1 being low risk and 100 being the coming 12 months, with shares falling in price on
an absolute basis.
Glossary
Peer Group Relative Strength vs Index
A subset of a universe that groups companies by Relative Strength vs Index measures the stock
specific criteria, such as industry/across industry, lines performance of the company verse all other stocks in
of business, geography (local, regional, national, and the benchmark index each week. Weekly readings are
international), size of business (e. g. in terms of accumulated to form the cumulative Relative Strength
revenue), performance criteria, etc. line.
Universe Relevant benchmarks:
A set of companies that shares a common feature Region Country Index
such as the same market capitalization, industry or US US S&P 500 Index
index.
Canada Canada S&P/TSX Composite Index
Beta Europe All S&P Europe 350 Index
Beta is a measurement of the sensitivity of a Asia ex Japan Australia S&P/ASX 200 Index
company's stock price to the overall fluctuation of a
given benchmark index. The beta values used in this All except
Asia ex Japan S&P Global 1200
report are levered, unadjusted and derived from a least Australia
squares regression analysis using stock and Abbreviations used in CFRA Equity Research Reports
benchmark index returns based on a monthly
CAGR Compound Annual Growth Rate
frequency. Beta is calculated using 60 monthly returns
(each as of month end) but if the company's trading EBIT Earnings Before Interest and Taxes
history is too short to provide such a sample, fewer Earnings Before Interest Taxes Depreciation and
EBITDA
than 60 but not fewer than 24 monthly returns are Amortization
used to run the regression. Beta in this report uses five EPS Earnings Per Share
different benchmark indices to better estimate a
EV Enterprise Value
stock's volatility against a respective market: the S&P
500 for all US stocks, the S&P/TSX index for all FCF Free Cash Flow
Canadian stocks, the S&P Europe 350 for all European FFO Funds from Operations
stocks, the S&P/ASX 200 index for all Australian LTD Long Term Debt
stocks, and the S&P Global 1200 for all other
NM Not Meaningful (see definition above)
international stocks.
P/E Price/Earnings
Free Cash Flow (FCF)
Operating Cash Flow minus Capital Expenditures over Dividends on American Depository Receipts (ADRs)
the past 12 months and American Depository Shares (ADSs) are net of
taxes (paid in the country of origin).
Funds from Operations (FFO)
Funds from Operations (FFO) represents a REIT's net
income, excluding gains or losses from sales of
property, plus real estate depreciation.
Not Meaningful (NM)
Value is available but it is not meaningful. Examples are
certain negative ratios such as P/E, as well as certain
ratios that are over +/- 100%
Not Available (NA)
Value is not available for this data item
Return on Capital
EBIT / (Total Equity + Total Debt + Deferred Tax Liability
Non Current + Deferred Tax Liability Current) Notes:
(1) If the denominator is less than or equal to zero then
the ratio will be shown as NM
(2) If the return is less than (300%) then the value will
be shown as NM
Return on Equity
Earnings From Continuing Operations / ((Total
Equity(t) + Total Equity (t-1)) / 2) Notes:
(1) If both periods of data (t and t-1) are not available
then the ratio will be shown as NM
(2) If the denominator is less than or equal to zero then
the ratio will be shown as NM
Disclosures
S&P GLOBAL is used under license. The owner of this trademarks is S&P Global Inc. Analyst Certification
or its affiliate, which are not affiliated with CFRA Research or the author of this STARS Stock Reports are prepared by the equity research analysts of CFRA its
content. affiliates and subsidiaries. Quantitative Stock Reports are prepared by CFRA. All of
the views expressed in STARS Stock Reports accurately reflect the research
Stocks are ranked in accordance with the following ranking methodologies: analyst's personal views regarding any and all of the subject securities or issuers;
STARS Stock Reports: all of the views expressed in the Quantitative Stock Reports accurately reflect the
Qualitative STARS recommendations are determined and assigned by equity output of CFRA's algorithms and programs. Analysts generally update STARS Stock
analysts. For reports containing STARS recommendations refer to the Glossary Reports at least four times each year. Quantitative Stock Reports are generally
section of the report for detailed methodology and the definition of STARS rankings. updated weekly. No part of analyst, CFRA, CFRA affiliate, or CFRA subsidiary
compensation was, is, or will be directly or indirectly related to the specific
Quantitative Stock Reports: recommendations or views expressed in any Stock Report.
Quantitative recommendations are determined by ranking a universe of common
stocks based on 5 measures or model categories: Valuation, Quality, Growth, Street About CFRA Equity Research's Distributors:
Sentiment, and Price Momentum. In the U.S., a sixth sub-category for Financial This Research Report is published and originally distributed by Accounting
Health will also be displayed. Percentile scores are used to compare each company Research & Analytics, LLC d/b/a CFRA ("CFRA US"), with the following exceptions: In
to all other companies in the same universe for each model category. The five (six) the UK/EU/EEA, it is published and originally distributed by CFRA UK Limited, ("CFRA
model category scores are then weighted and rolled up into a single percentile UK"), which is regulated by the Financial Conduct Authority (No. 775151), and in
ranking for that company. For reports containing quantitative recommendations Malaysia by CFRA MY Sdn Bhd (Company No. 683377-A) (formerly known as
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