REGN
Regeneron Pharmaceuticals, Inc.
$746.54
Platform & Compounding FCF
80%
Two-stage FCF DCF
Moderate
·
Conviction
Fair Value
Trading 22.5% below fair value
You pay
$746.54
Bear
$665.52
Fair
$963.43
Bull
$1,281.83
Bear
$665.52
-10.9%
8% stage 1 growth, 11% discount
Fair
$963.43
+29.1%
13% stage 1 growth, 11% discount
Bull
$1,281.83
+71.7%
17% stage 1 growth, 11% discount
Adjust Assumptions
13.3%
11.0%
3.0%
Key Value Driver
FCF growth rate (13% base case)
Terminal Value % of EV
42%
Implied Market Multiple
21.1x
Market is pricing in (growth)
9.7%
vs 13.3% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (49 analysts)
$849.84
Divergence from AlphaVal
13%
Summary
Using a two-stage FCF DCF with 13% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $963.43 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