Biogen Inc. (BIIB) Stock Valuation — PE Analysis
Drug Manufacturers - General · NASDAQ
Current Price
$243.74
PE Ratio (TTM)
1.6x
Intrinsic Value
Outside reliable range
COMPETITIVE MOAT
↑Established Blockbuster Drugs
Biogen possesses a portfolio of established drugs with significant market share and revenue generation. These drugs benefit from brand recognition and physician familiarity, creating a barrier to entry for competitors.
↑Specialized R&D Expertise
The company's deep expertise in neuroscience and rare diseases allows for focused research and development. This specialization fosters a pipeline of innovative treatments with high unmet medical needs.
↑Regulatory Hurdles for New Entrants
The lengthy and costly process of drug development and FDA approval creates a significant barrier for new companies. Biogen's experience navigating these regulations provides a competitive advantage.
INVESTMENT RISKS
↓Clinical Trial Failures and Regulatory Setbacks
The inherent risk of drug development means that promising candidates can fail in clinical trials or face regulatory rejection. This can lead to significant financial losses and pipeline disruptions.
↓Pricing Pressure and Reimbursement Challenges
Increasing scrutiny on drug pricing and evolving reimbursement policies from payers can impact profitability. Biogen may face challenges in maintaining current pricing for its therapies.
↓Dependence on Key Therapeutic Areas
A significant portion of Biogen's revenue is concentrated in specific therapeutic areas. Any adverse developments or increased competition within these areas could disproportionately affect the company.
Base case
BIIB base case PE valuation
Base case assumptions: 2.5% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the BIIB PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Biogen Inc. respond.
Open PE Calculator for BIIBCompany Overview
Biogen Inc. is a leading biotechnology firm dedicated to the discovery, development, production, and distribution of treatments for complex neurological and neurodegenerative conditions. Its established portfolio includes a range of medications addressing multiple sclerosis (MS), such as TECFIDERA, VUMERITY, AVONEX, PLEGRIDY, TYSABRI, and FAMPYRA. For spinal muscular atrophy (SMA), Biogen provides SPINRAZA, while FUMADERM is available for the treatment of plaque psoriasis. Among its other key offerings is ADUHELM, specifically developed for Alzheimer's disease. The company also markets a selection of biosimilar drugs, including BENEPALI (an etanercept biosimilar akin to ENBREL), IMRALDI (an adalimumab biosimilar comparable to HUMIRA), and FLIXABI (an infliximab biosimilar referencing REMICADE). Further extending its therapeutic reach, Biogen supplies RITUXAN, prescribed for conditions like non-Hodgkin's lymphoma, chronic lymphocytic leukemia (CLL), rheumatoid arthritis, certain types of ANCA-associated vasculitis, and pemphigus vulgaris. RITUXAN HYCELA targets non-Hodgkin's lymphoma and CLL, and GAZYVA is utilized for CLL and follicular lymphoma. OCREVUS addresses both relapsing and primary progressive forms of MS, complementing the company's broader efforts in anti-CD20 therapies. The company maintains a robust research and development pipeline, featuring numerous investigational therapies. These candidates are designed to tackle a wide spectrum of conditions, including multiple sclerosis and neuroimmunological disorders (e.g., BIIB135, BIIB061, BIIB091, BIIB107), Alzheimer's disease and other forms of dementia (e.g., Aducanumab, Lecanemab, BIIB076, BIIB080), neuromuscular disorders (e.g., BIIB067, BIIB078, BIIB105, BIIB100, BIIB110), Parkinson's disease and related movement disorders (e.g., BIIB124, BIIB094, BIIB118, BIIB101, BIIB122), neuropsychiatric conditions (e.g., BIIB125, BIIB104), immunology-related illnesses (e.g., Dapirolizumab pegol, BIIB059), acute neurological events (e.g., BIIB093, BIIB131), and neuropathic pain (e.g., BIIB074). Additionally, several biosimilar candidates, such as BYOOVIZ, BIIB800, and SB15, are progressing through various developmental stages. Biogen actively engages in strategic collaborations and licensing arrangements with various partners, including Acorda Therapeutics, Inc., Alkermes Pharma Ireland Limited, Denali Therapeutics Inc., Eisai Co., Ltd., Genentech, Inc., Neurimmune SubOne AG, Ionis Pharmaceuticals, Inc., Samsung Bioepis Co., Ltd., Sangamo Therapeutics, Inc., and Sage Therapeutics, Inc. Established in 1978, Biogen Inc. maintains its corporate headquarters in Cambridge, Massachusetts.
Financial Metrics — BIIB PE Stock Valuation Data
PE Ratio (TTM)
1.6x
PEG Ratio
0.00
Earnings Yield
0.96%
ROE (TTM)
1.9%
Revenue/Share (TTM)
$69.72
Debt/Equity
0.41x
Frequently Asked Questions
What is the PE ratio of BIIB?
The trailing twelve-month PE ratio of BIIB reflects how much investors pay per dollar of Biogen Inc.'s earnings. This metric is most useful when compared to Drug Manufacturers - General peers and the company's own historical range.
Is BIIB overvalued based on PE ratio?
BIIB's PE of 1.6x combined with a PEG ratio of 0.00 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Drug Manufacturers - General, a DCF analysis may be more appropriate.
How do I value BIIB stock using PE ratio?
To value Biogen Inc. using PE: (1) Compare the current PE (1.6x) against the Drug Manufacturers - General median to assess relative pricing, (2) check the PEG ratio (0.00) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of BIIB?
BIIB's PEG ratio is 0.00, calculated by dividing the PE ratio (1.6x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for BIIB stock valuation?
PE ratio gives a quick relative read — how BIIB is priced versus Drug Manufacturers - General peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See BIIB DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value BIIB with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.