Is Regeneron Pharmaceuticals Inc (REGN) overvalued?
On Equity Rank's model estimate, REGN trades 23% below its fair value. Regeneron Pharmaceuticals Inc (REGN) last closed at $904.35; the multi-method model fair value is $1,177.95.
| Price | Model fair value | Price vs model |
|---|---|---|
| $904.35 | $1177.95 | 23% below |
What the answer rests on
- 7 of 12 valuation methods put REGN's value above its price and 5 put it below, so the methods disagree.
- To justify today's price, REGN's free cash flow would need to grow about -2.0% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -2.7% a year.
- REGN trades at 20.6 times its last year's earnings, against a median of 19.7 for 24 profitable Biotechnology companies.
- Over the past year the price sat below the model fair value on 100% of trading days. The gap ranged from 55% below to 11% below the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind REGN's fair value · What prices assume · Other companies