REGN
Regeneron Pharmaceuticals, Inc.
$651.91
Platform & Compounding FCF
80%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 30.2% below fair value
You pay
$651.91
Bear
$637.50
Fair
$934.10
Bull
$1,254.40
Bear
$637.50
-2.2%
8% stage 1 growth, 11% discount
Fair
$934.10
+43.3%
14% stage 1 growth, 11% discount
Bull
$1,254.40
+92.4%
18% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (14% base case)
Terminal Value % of EV
42%
Implied Market Multiple
18.4x
Market is pricing in (growth)
7.8%
vs 13.7% base
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $823.39 from 49 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $934.10 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions