As of September 11, 2025, Regeneron Pharmaceuticals Inc's estimated intrinsic value ranges from $357.41 to $747.67 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $698.32 | +25.6% |
| Discounted Cash Flow (5Y) | $623.96 | +12.3% |
| Dividend Discount Model (Multi-Stage) | $623.82 | +12.2% |
| Dividend Discount Model (Stable) | $747.67 | +34.5% |
| Earnings Power Value | $357.41 | -35.7% |
Is Regeneron Pharmaceuticals Inc (REGN) undervalued or overvalued?
With the current market price at $555.83, the stock appears to be moderately 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 | 0.97 | 1.12 |
| Cost of equity | 8.3% | 11.1% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 7.8% | 9.0% |
| Debt/Equity ratio | 0.04 | 0.04 |
| After-tax WACC | 8.1% | 10.8% |
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 | $624 | $66,843M | 78.1% |
| 10-Year Growth | $698 | $74,725M | 61.4% |
| 5-Year EBITDA | $612 | $65,609M | 77.7% |
| 10-Year EBITDA | $696 | $74,524M | 61.3% |
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) | 10.8% - 8.1% |
| Enterprise Value | $33,124M - $44,058M |
| Net Debt | $709M |
| Equity Value | $32,415M - $43,349M |
| Outstanding Shares | 106M |
| Fair Value | $306 - $409 |
| Selected Fair Value | $357.41 |
| Metric | Value |
|---|---|
| Market Capitalization | $58912M |
| Enterprise Value | $59622M |
| Trailing P/E | 13.21 |
| Forward P/E | 13.11 |
| Trailing EV/EBITDA | 12.20 |
| Current Dividend Yield | 30.67% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.04 |
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% | $209.50 |
| Discounted Cash Flow (5Y) | 25% | $155.99 |
| Dividend Discount Model (Multi-Stage) | 20% | $124.76 |
| Dividend Discount Model (Stable) | 15% | $112.15 |
| Earnings Power Value | 10% | $35.74 |
| Weighted Average | 100% | $638.14 |
Based on our comprehensive valuation analysis, Regeneron Pharmaceuticals Inc's intrinsic value is $638.14, which is approximately 14.8% above the current market price of $555.83.
Key investment considerations:
Given these factors, we believe Regeneron Pharmaceuticals Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.