As of June 1, 2025, Regeneron Pharmaceuticals Inc has a Discounted Cash Flow (DCF) derived fair value of $718.17 per share. With the current market price at $490.28, this represents a potential upside of 46.5%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $605.73 |
| DCF Fair Value (10-year) | $718.17 |
| Potential Upside (5-year) | 23.5% |
| Potential Upside (10-year) | 46.5% |
| Discount Rate (WACC) | 8.2% - 10.6% |
Revenue is projected to grow from $14202 million in 12-2024 to $25719 million by 12-2034, representing a compound annual growth rate of approximately 6.1%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 14202 | 8% |
| 12-2025 | 13677 | -4% |
| 12-2026 | 14518 | 6% |
| 12-2027 | 15649 | 8% |
| 12-2028 | 16400 | 5% |
| 12-2029 | 17795 | 9% |
| 12-2030 | 19416 | 9% |
| 12-2031 | 21273 | 10% |
| 12-2032 | 23208 | 9% |
| 12-2033 | 24113 | 4% |
| 12-2034 | 25719 | 7% |
Net profit margin is expected to improve from 31% in 12-2024 to 34% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 4413 | 31% |
| 12-2025 | 4326 | 32% |
| 12-2026 | 4675 | 32% |
| 12-2027 | 5123 | 33% |
| 12-2028 | 5454 | 33% |
| 12-2029 | 6004 | 34% |
| 12-2030 | 6569 | 34% |
| 12-2031 | 7217 | 34% |
| 12-2032 | 7895 | 34% |
| 12-2033 | 8224 | 34% |
| 12-2034 | 8795 | 34% |
with a 5-year average of $918 million. Projected CapEx is expected to maintain at approximately 7% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 999 |
| 12-2026 | 1105 |
| 12-2027 | 1014 |
| 12-2028 | 1073 |
| 12-2029 | 1162 |
| 12-2030 | 1247 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 159 |
| Days Inventory | 574 |
| Days Payables | 141 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | 3710 | 274 | 764 | (411) | 3083 |
| 2026 | 5384 | 395 | 1081 | 388 | 3521 |
| 2027 | 5719 | 433 | 1165 | 581 | 3540 |
| 2028 | 6095 | 461 | 1221 | 290 | 4123 |
| 2029 | 6705 | 508 | 1325 | 677 | 4195 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 605.73 | 23.5% |
| 10-Year DCF (Growth) | 718.17 | 46.5% |
| 5-Year DCF (EBITDA) | 551.35 | 12.5% |
| 10-Year DCF (EBITDA) | 664.29 | 35.5% |
Is Regeneron Pharmaceuticals Inc (REGN) a buy or a sell? Regeneron Pharmaceuticals Inc is definitely a buy. Based on our DCF analysis, Regeneron Pharmaceuticals Inc (REGN) appears to be significantly undervalued with upside potential of 46.5%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $490.28.