Regeneron Pharmaceuticals, Inc. (REGN) Intrinsic Value & DCF Valuation
Biotechnology · NASDAQ
Current Price
$781.49
Intrinsic Value
$1,045.84
+25.3% margin of safety
What Is Regeneron Pharmaceuticals, Inc.'s Intrinsic Value?
As of 2026-09-11, the base-case DCF model estimates the intrinsic value of Regeneron Pharmaceuticals, Inc. (REGN) at $1,045.84 per share, compared with a market price of $781.49, a margin of safety of +25.3%. The base case assumes 12.2% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $858.27 to $1,259.59. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Regeneron Pharmaceuticals, Inc. (REGN) Undervalued?
At $781.49, REGN trades about 25.3% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑Proprietary Drug Pipeline
Regeneron's extensive research and development yields a robust pipeline of innovative drugs. This creates significant barriers to entry for competitors seeking to replicate their success.
↑Scientific Expertise and Talent
The company attracts and retains top-tier scientific talent, fostering a culture of innovation. This deep expertise is difficult for rivals to match, driving continuous discovery.
↑Established Market Positions
Successful drugs like Eylea and Dupixent have secured strong market positions and brand loyalty. This entrenched presence makes it challenging for new entrants to gain traction.
INVESTMENT RISKS
↓Clinical Trial Failures
The inherent risk of drug development means that promising candidates may fail in clinical trials. This can lead to significant financial losses and a depleted pipeline.
↓Securities Class Action Lawsuits
Multiple class action lawsuits have been filed against Regeneron, alleging securities fraud. These legal challenges pose financial and reputational risks to the company.
↓Dependence on Key Blockbuster Drugs
Regeneron's revenue is heavily reliant on a few key drugs. Any significant disruption to these products could disproportionately impact overall financial performance.
Base case
REGN base case valuation
Intrinsic Value
$1,045.84
Margin of safety
+25.3%
Expected annual return
+6.0%
Base case assumptions: 12.2% annual growth, 10.0% discount rate, 22.86x exit multiple, 5 year projection. Data as of 2026-09-11.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the REGN valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Regeneron Pharmaceuticals, Inc. respond.
Open DCF Calculator for REGNCompany Overview
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.
Financial Metrics — REGN Stock Valuation Data
Revenue/Share (TTM)
$150.24
FCF/Share (TTM)
$34.06
ROIC (TTM)
9.2%
ROE (TTM)
13.8%
P/FCF
22.9x
EV/EBITDA
13.9x
FCF Yield
4.37%
Debt/Equity
0.06x
Based on trailing twelve-month data, REGN shows a free cash flow per share of $34.06 and a ROIC of 9.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 22.9x and FCF yield of 4.37% are important context metrics when evaluating REGN's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of REGN?
Regeneron Pharmaceuticals, Inc. currently generates $34.06 in free cash flow per share. At the current price of $781.49, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is REGN undervalued?
REGN trades at a P/FCF ratio of 22.9x with a free cash flow yield of 4.37%. This P/FCF is in a moderate range. However, whether REGN is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value REGN stock using DCF?
To perform a DCF valuation on Regeneron Pharmaceuticals, Inc.: (1) Start with the trailing free cash flow per share ($34.06) as the base, (2) project future FCF growth over 5-10 years based on Biotechnology industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting REGN's risk profile — with a debt-to-equity of 0.06x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to REGN?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Regeneron Pharmaceuticals, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Biotechnology trends, then discounting those amounts to today's dollars. REGN's ROIC of 9.2% shows moderate capital returns.
How does WACC affect REGN stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For REGN, with a debt-to-equity ratio of 0.06x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 13.9x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See REGN PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Healthcare valuationsDCF and P/E value REGN with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.