United Therapeutics Corporation (UTHR) DCF Valuation
TGM's two-stage DCF values United Therapeutics Corporation (UTHR) between $550.66 and $1,042.96 depending on assumptions, with a base case of $740.13. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$545.96 is justified only if free cash flow grows about +6.4% a year (fading to 2.5% long-run) at a 7.5% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 11.1%/yr | 8.5% | $550.66 |
| Base case | 14.1%/yr | 7.5% | $740.13 |
| Optimistic | 17.1%/yr | 6.5% | $1,042.96 |
| Analyst DCF (FMP) | independent reference — different model | $807.86 | |
Current Price
$545.96
Market-Implied Growth
+6.4%/yr
vs +12.1% 5Y actual
Model Scenario Range
$550.66 – $1,042.96
model output — not a price target
UTHR DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for UTHR (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $894.1M · 0.04B shares · net cash $1.6B
Estimated Fair Value
$1116.92
+104.6% vs $545.96
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 14.1%/yr FCF growth and 10-year horizon fixed. Green = above today's $545.96; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $1539 | $1713 | $1945 | $2269 | $2756 |
| 6.5% | $1202 | $1302 | $1426 | $1586 | $1798 |
| 7.5% | $980 | $1042 | $1117 | $1208 | $1322 |
| 8.5% | $823 | $864 | $913 | $970 | $1039 |
| 9.5% | $706 | $735 | $768 | $806 | $851 |
About United Therapeutics Corporation
United Therapeutics Corporation, a biotechnology firm, is dedicated to discovering, developing, and bringing to market medical solutions for individuals suffering from chronic and severe, often life-threatening, illnesses. Its operations span both the United States and international markets. The company's current commercial portfolio features several key therapeutics: Remodulin, prescribed for pulmonary arterial hypertension (PAH) to lessen symptoms experienced during physical activity. Tyvaso, an inhaled form of the prostacyclin analogue treprostinil, designed to enhance exercise capacity in patients with PAH and pulmonary hypertension linked to interstitial lung disease (PH-ILD). Orenitram, a treprostinil tablet formulation, also aims to boost the exercise capabilities of PAH patients. Unituxin, a monoclonal antibody utilized in the treatment of high-risk neuroblastoma. Adcirca, an oral PDE-5 inhibitor, which helps improve exercise performance in those with PAH. United Therapeutics also maintains a robust development pipeline, including: Tyvaso DPI, a dry powder inhaler version of Tyvaso. The Remunity Pump, a compact, lightweight, and durable infusion system for treprostinil, accompanied by a separate controller. RemoPro and Ralinepag, both investigational treatments for PAH. Aurora-GT, a gene therapy product focused on regenerating blood vessels within the lungs. Clinical trials such as Tyvaso PERFECT and TETON, which are evaluating Tyvaso's efficacy in patients with World Health Organization (WHO) Group 3 pulmonary hypertension associated with chronic obstructive pulmonary disease (PH-COPD). The company has forged strategic alliances and licensing agreements with various entities, such as DEKA Research & Development Corp. for a semi-disposable subcutaneous treprostinil delivery system; MannKind Corporation for the development and licensing of treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. for the development of Ralinepag. Established in 1996, United Therapeutics Corporation is headquartered in Silver Spring, Maryland.
- Sector
- Healthcare
- Industry
- Biotechnology
- CEO
- Martine A. Rothblatt