Investment Thesis for Aldeyra Therapeutics, Inc. (NASDAQ: ALDX)

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Date
2016-07
Journal Title
Journal ISSN
Volume Title
Publisher
Institute for Applied Economics, Global Health, and the Study of Business Enterprise
Abstract
This working paper is an in-depth analysis Aldeyra Therapeutics, Inc. Our analysis examines the factors that impact ALDX’s underlying business. This economic analysis is then combined with our unique net present value (NPV) model to determine ALDX’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. We also studied the proxy report to examine the compensation practices of ALDX and determine whether they are well-aligned with shareholder interests. Our objective is for readers to understand ALDX’s business plan and financial standing to construct 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
finance, investment thesis, Aldeyra Therapeutics, financial modeling, discounted cash flow, net present value, Monte-Carlo simulation, management compensation
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