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Zach's lays out the valuation assumptions in the Conclusion & Valuation Methodology section of its report

"Management believes that the product will likely launch in 2021, with sales ramping up over the next several years. We are assuming peak sales in 2027. Management also gave us a 24% discount rate assumption, which we believe is a fair and conservative estimate.

We are modeling peak sales of $6.3 billion or approximately $5.7 billion, net of royalties. We have assumed gross sales of $1.5 billion from high-risk cardiovascular disease, $2.7 billion in diabetes mellitus, and $2.1 billion in chronic kidney disease. We also compared our projected peak sales figures to the existing market for at risk CVD patients, including approved drugs like Lipitor® ($13.7 billion peak in 2006), Crestor® ($6.6 billion peak in 2011, $5.5 billion in 2014), Lovaza® ($1.1 billion peak in 2013). We are also using several peak sales estimates we found for recently approved drugs such as Amgen’s and Regeneron/Sanofi’s PCSK9 inhibitors, evolocumab and alirocumab, respectively. We are also including CETP inhibitors, such as Merck’s Phase 3 candidate anacetrapib, on the list of comparable drugs to help us understand the peak sales potential for apabetalone. Wall Street consensus estimates, as well as independent analyst estimates from websites such as TheStreet.com, FierceBiotech, Benzinga, and Seeking-Alpha, for these drugs range between $3 billion to $10 billion. We believe apabetalone, although flying significantly below the radar of these other drugs, has similar peak sales potential, if Phase 3 BETonMACE data are positive."

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