Seagen Inc. (SGEN) Stock Valuation — PE Analysis

Biotechnology · NASDAQ

Current Price

$228.74

PE Ratio (TTM)

n/m

Intrinsic Value

Use the calculator below to estimate

AI MOAT & RISK ANALYSIS
AI Generated · For Reference OnlySGEN

COMPETITIVE MOAT

ADC Technology Leadership

Seagen possesses deep expertise in antibody-drug conjugate (ADC) technology. This specialized knowledge allows for the development of highly targeted cancer therapies.

Pipeline of Novel Therapies

A robust pipeline of innovative drug candidates across various cancer types provides future growth potential. This diversification mitigates reliance on single products.

Strong Clinical Trial Execution

Proven ability to successfully navigate complex clinical trials and gain regulatory approvals. This demonstrates operational excellence and scientific rigor.

INVESTMENT RISKS

Intense Competition

The biotechnology sector is highly competitive with numerous companies developing similar therapies. This can lead to pricing pressures and market share challenges.

Regulatory Hurdles

Drug development is subject to stringent and evolving regulatory requirements. Delays or rejections in approvals can significantly impact timelines and revenue.

Patent Expirations

Loss of patent protection for key drugs will open the door to generic competition. This necessitates continuous innovation and pipeline replenishment.

This company has negative earnings, so a P/E model may not be meaningful — it values profits. You can still use the calculator below with your own assumptions.

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Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Seagen Inc. respond.

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Company Overview

Seagen Inc. is a biotechnology firm focused on the development and global commercialization of innovative cancer treatments. Its portfolio features several key oncology therapeutics, including ADCETRIS, an antibody-drug conjugate (ADC) utilized for Hodgkin lymphoma and CD30-positive T-cell lymphomas; PADCEV, another ADC designed to target Nectin-4 in patients with advanced or metastatic urothelial cancer; and TUKYSA, an oral small molecule tyrosine kinase inhibitor prescribed for adults battling advanced, inoperable, or metastatic HER2-positive breast cancer. Beyond its marketed drugs, Seagen maintains an active pipeline of investigational therapies. These encompass TIVDAK for metastatic cervical cancer and other solid malignancies; Ladiratuzumab Vedotin, an ADC aimed at LIV-1 for metastatic breast cancer and other solid tumors; Disitamab Vedotin, a novel ADC specifically targeting HER2; and preclinical candidates such as SEA-CD40, SEA-TGT, SEA-BCMA, and SEA-CD70, intended for diverse oncological conditions. The company has established strategic alliances with several partners, including Takeda Pharmaceutical Company Limited, Agensys, Inc., Genmab A/S, Merck, and RemeGen, Co. Ltd. Originally incorporated in 1997 as Seattle Genetics, Inc., the firm adopted its current name, Seagen Inc., in October 2020. Its corporate headquarters are located in Bothell, Washington.

Financial Metrics — SGEN PE Stock Valuation Data

PE Ratio (TTM)

n/m

PEG Ratio

4.43

Earnings Yield

-1.44%

ROE (TTM)

-20.8%

Revenue/Share (TTM)

$10.63

Debt/Equity

0.02x

Frequently Asked Questions

What is the PE ratio of SGEN?

The trailing twelve-month PE ratio of SGEN reflects how much investors pay per dollar of Seagen Inc.'s earnings. This metric is most useful when compared to Biotechnology peers and the company's own historical range.

Is SGEN overvalued based on PE ratio?

SGEN's PE of -69.2x combined with a PEG ratio of 4.43 provides a growth-adjusted perspective. A PEG above 2.0 suggests SGEN may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Biotechnology, a DCF analysis may be more appropriate.

How do I value SGEN stock using PE ratio?

To value Seagen Inc. using PE: (1) Compare the current PE (-69.2x) against the Biotechnology median to assess relative pricing, (2) check the PEG ratio (4.43) 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 SGEN?

SGEN's PEG ratio is 4.43, calculated by dividing the PE ratio (-69.2x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.

Should I use PE ratio or DCF for SGEN stock valuation?

PE ratio gives a quick relative read — how SGEN is priced versus Biotechnology 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.

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P/E and DCF value SGEN with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2023-12-13. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.