REGN
Regeneron Pharmaceuticals, Inc.
$638.88
Platform & Compounding FCF
80%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 32.1% below fair value
You pay
$638.88
Bear
$641.43
Fair
$940.89
Bull
$1,264.56
Bear
$641.43
+0.4%
8% stage 1 growth, 11% discount
Fair
$940.89
+47.3%
14% stage 1 growth, 11% discount
Bull
$1,264.56
+97.9%
18% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (14% base case)
Terminal Value % of EV
42%
Implied Market Multiple
18.0x
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 $840.15 from 48 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $940.89 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