REGN Fair Value Estimate
$1382.8480.5% undervalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
REGN
CompareRegeneron Pharmaceuticals Inc
Exchange: NASDAQSector: HealthcareIndustry: Biotechnology
Regeneron is a leading biotechnology company that invents, develops and commercializes life-transforming medicines for people with serious diseases. Founded and led by physician-scientists, our unique ability to repeatedly and consistently translate science into medicine has led to numerous approved treatments and product candidates in development, most of which were homegrown in our laboratories. Our medicines and pipeline are designed to help patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, neurological diseases, hematologic conditions, infectious diseases, and rare diseases. Regeneron pushes the boundaries of scientific discovery and accelerates drug development using our proprietary technologies, such as VelociSuite ®, which produces optimized fully human antibodies and new classes of bispecific antibodies. We are shaping the next frontier of medicine with data-powered insights from the Regeneron Genetics Center ® and pioneering genetic medicine platforms, enabling us to identify innovative targets and complementary approaches to potentially treat or cure diseases.
Did you know?
Profit margin of 31.4% — that's well above average.
Current Price
$766.02
+2.60%GoodMoat Value
$1382.84
80.5% undervaluedProfile
Valuation (TTM)
Market Cap$80.51B
P/E17.87
EV$71.51B
P/B2.58
Shares Out105.10M
P/Sales5.61
Revenue$14.34B
EV/EBITDA12.82
Regeneron Pharmaceuticals Inc (REGN) Valuation
GoodMoat Analysis
Regeneron appears deeply undervalued based on the GoodMoat Target, offering a significant margin of safety. However, its current valuation multiples are low relative to its historical average and the sector, which may reflect concerns about near-term growth. The assessment is favourable from a price perspective but requires caution regarding the business's growth trajectory.
Read full analysis
From a valuation perspective, Regeneron presents a compelling case. The current price of $749.47 is approximately 46% below the GoodMoat Target of $1,382.84. According to the framework's DCF bands, a margin of safety greater than 40% qualifies as 'Deeply Undervalued,' making the current price appear highly favourable. The P/E ratio of 17.5x is notably below the broader biotechnology sector average, which often trades above 20x, and is likely at the lower end of Regeneron's own historical range, suggesting the stock is cheap on an earnings basis. The Free Cash Flow Yield of 5.2% also indicates solid cash generation relative to its market price. However, this low valuation exists alongside a modest revenue growth rate of 2.5% YoY. For a value investor, the key question is whether this low price adequately compensates for the potential growth challenges. The stock is cheap on an absolute and relative basis, but its quality as a growth investment is muted by the current growth metrics. The valuation is favourable, but the investment thesis hinges on the durability of its earnings and potential for re-acceleration, not just the low multiple.
REGN Valuation Metrics
FCF—
FCF Growth Rate—
EPS Growth (CAGR)—
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →REGN Valuation & Fair Value Analysis
Regeneron Pharmaceuticals Inc (REGN) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Regeneron Pharmaceuticals Inc is $1382.84. The current stock price is $766.02, suggesting the stock is 80.5% undervalued.
The price-to-earnings (P/E) ratio is 17.87. Price-to-book ratio is 2.58. Price-to-sales ratio is 5.61. Enterprise value to EBITDA is 12.82. PEG ratio is -5.09.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Regeneron Pharmaceuticals Inc's intrinsic value.