Regeneron Pharmaceuticals, Inc. (REGN) DCF Valuation
Transparent DCF models put Regeneron Pharmaceuticals, Inc. (REGN)'s fair value in a range of $641.07 – $2,343.26 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $616.18 sits below that range — by these conservative assumptions it screens as potentially undervalued.
Reverse DCF: at today's $616.18, the market is pricing in roughly +4.4%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +15.4%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$616.18
Fair-Value Range
$641.07 – $2,343.26
Market-Implied Growth
+4.4%/yr
vs +15.4% 5Y actual
REGN DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $4.0B · 0.10B shares · net cash $1.1B
Estimated Fair Value
$641.07
+4.0% vs $616.18
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $616.18; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $794 | $834 | $882 | $939 | $1008 |
| 9.0% | $684 | $711 | $743 | $780 | $823 |
| 10.0% | $599 | $619 | $641 | $666 | $696 |
| 11.0% | $533 | $548 | $564 | $582 | $602 |
| 12.0% | $480 | $491 | $503 | $516 | $531 |
About Regeneron Pharmaceuticals, Inc.
Regeneron Pharmaceuticals, Inc. is a global biopharmaceutical enterprise focused on discovering, inventing, developing, manufacturing, and bringing to market medical treatments for a wide array of illnesses. Its therapeutic portfolio includes EYLEA, an injection used to treat various ophthalmic conditions such as wet age-related macular degeneration, diabetic macular edema, myopic choroidal neovascularization, diabetic retinopathy, and macular edema resulting from retinal vein occlusion (both central and branch). Other significant offerings are Dupixent, an injectable solution for atopic dermatitis and asthma in both adults and pediatric patients; Libtayo, indicated for metastatic or locally advanced cutaneous squamous cell carcinoma; Praluent, an injection prescribed for adults with heterozygous familial hypercholesterolemia or clinical atherosclerotic cardiovascular disease; REGEN-COV for COVID-19; and Kevzara, a solution targeting rheumatoid arthritis in adult patients. Furthermore, Regeneron provides Inmazeb for infections caused by Zaire ebolavirus; ARCALYST, an injection for cryopyrin-associated periodic syndromes, including familial cold auto-inflammatory syndrome and Muckle-Wells syndrome; and ZALTRAP, an intravenous infusion used in the treatment of metastatic colorectal cancer. In addition to its existing product lineup, the company is actively engaged in developing novel product candidates aimed at addressing unmet medical needs in areas such as ocular diseases, allergic and inflammatory conditions, cardiovascular and metabolic disorders, infectious diseases, rare diseases, cancer, pain management, and hematologic conditions. Regeneron maintains extensive collaboration and licensing agreements with a diverse range of partners, including Sanofi, Bayer, Teva Pharmaceutical Industries Ltd., Mitsubishi Tanabe Pharma Corporation, Alnylam Pharmaceuticals, Inc., Roche Pharmaceuticals, and Kiniksa Pharmaceuticals, Ltd. It also holds agreements with entities such as the U.S. Department of Health and Human Services, Zai Lab Limited, Intellia Therapeutics, Inc., the Biomedical Advanced Research Development Authority, and AstraZeneca PLC. The company was founded in 1988 and its corporate headquarters are situated in Tarrytown, New York.
- Sector
- Healthcare
- Industry
- Biotechnology
- CEO
- Leonard S. Schleifer