As of June 20, 2025, Regeneron Pharmaceuticals Inc's estimated intrinsic value ranges from $361.30 to $726.13 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $708.46 | +37.9% |
| Discounted Cash Flow (5Y) | $597.83 | +16.4% |
| Dividend Discount Model (Multi-Stage) | $590.41 | +15.0% |
| Dividend Discount Model (Stable) | $726.13 | +41.4% |
| Earnings Power Value | $361.30 | -29.7% |
Is Regeneron Pharmaceuticals Inc (REGN) undervalued or overvalued?
With the current market price at $513.58, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Regeneron Pharmaceuticals Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1 | 1.09 |
| Cost of equity | 8.5% | 11.0% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 7.8% | 9.0% |
| Debt/Equity ratio | 0.05 | 0.05 |
| After-tax WACC | 8.2% | 10.6% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $598 | $64,162M | 76.7% |
| 10-Year Growth | $708 | $76,107M | 62.0% |
| 5-Year EBITDA | $531 | $56,971M | 73.8% |
| 10-Year EBITDA | $643 | $69,051M | 58.1% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $3,588M |
| Discount Rate (WACC) | 10.6% - 8.2% |
| Enterprise Value | $33,707M - $43,541M |
| Net Debt | $(385)M |
| Equity Value | $34,093M - $43,926M |
| Outstanding Shares | 108M |
| Fair Value | $316 - $407 |
| Selected Fair Value | $361.30 |
| Metric | Value |
|---|---|
| Market Capitalization | $55451M |
| Enterprise Value | $55066M |
| Trailing P/E | 12.32 |
| Forward P/E | 12.82 |
| Trailing EV/EBITDA | 10.45 |
| Current Dividend Yield | 16.42% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.05 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $212.54 |
| Discounted Cash Flow (5Y) | 25% | $149.46 |
| Dividend Discount Model (Multi-Stage) | 20% | $118.08 |
| Dividend Discount Model (Stable) | 15% | $108.92 |
| Earnings Power Value | 10% | $36.13 |
| Weighted Average | 100% | $625.13 |
Based on our comprehensive valuation analysis, Regeneron Pharmaceuticals Inc's weighted average intrinsic value is $625.13, which is approximately 21.7% above the current market price of $513.58.
Key investment considerations:
Given these factors, we believe Regeneron Pharmaceuticals Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.