Biotechnology · NASDAQ
Current Price
$228.74
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Seagen Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Seagen Inc., a biotechnology company, develops and commercializes therapies for the treatment of cancer in the United States and internationally. The company offers ADCETRIS, an antibody-drug conjugate (ADC) for the treatment of patients with Hodgkin lymphoma or CD30-positive T-cell lymphomas; PADCEV, an ADC targeting Nectin-4 for the treatment of advanced or metastatic urothelial cancer; and TUKYSA, an oral small molecule tyrosine kinase inhibitor for the treatment of adult patients with advanced unresectable or metastatic HER2-positive breast cancer. It also develops TIVDAK for metastatic cervical cancer and other solid tumors; Ladiratuzumab Vedotin, an ADC targeting LIV-1 for metastatic breast cancer and solid tumors; Disitamab Vedotin, a novel HER2-targeted ADC; and SEA-CD40, SEA-TGT, SEA-BCMA, and SEA-CD70 for various cancer diseases. Seagen Inc. has collaboration agreements with Takeda Pharmaceutical Company Limited; Agensys, Inc.; Genmab A/S; Merck; and RemeGen, Co. Ltd. The company was formerly known as Seattle Genetics, Inc. and changed its name to Seagen Inc. in October 2020. Seagen Inc. was incorporated in 1997 and is headquartered in Bothell, Washington.
ROIC (TTM)
-21.5%
ROE (TTM)
-20.8%
FCF Yield
-1.23%
Based on trailing twelve-month data, SGEN shows a free cash flow per share of N/A and a ROIC of -21.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -1.23% are important context metrics when evaluating SGEN's stock valuation relative to peers.
The intrinsic value of SGEN depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether SGEN is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $228.74. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Seagen Inc.: (1) Start with the trailing free cash flow per share 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 SGEN's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Seagen Inc., this means projecting how much free cash flow the Biotechnology will produce over the next 5-10 years, then discounting those amounts to today's dollars. SGEN's ROIC of -21.5% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For SGEN, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
