ADC Therapeutics SA

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $79.58M current revenue growing 15% annually for years 1-5 and 8% for years 6-10; FCF margin ramping from -30% currently to +15% terminal as Zynlonta sales scale; 13% discount rate; 3% terminal growth; less $219.08M net debt; 127.67M shares outstanding. The base-case DCF produces minimal residual equity value once net debt is subtracted, so a small positive figure reflecting limited option value is used.

Reasoning: ADC Therapeutics carries substantial debt, including royalty/revenue-interest financing, against a currently loss-making commercial oncology business; the DCF highlights meaningful leverage risk to equity holders even though its approved drug Zynlonta has real, if still modest, commercial traction and potential label-expansion upside.