Alnylam Pharmaceuticals, Inc. (ALNY) Intrinsic Value & DCF Valuation
Biotechnology · NASDAQ
Current Price
$248.68
Intrinsic Value
$211.15
-17.8% margin of safety
What Is Alnylam Pharmaceuticals, Inc.'s Intrinsic Value?
As of 2026-09-11, the base-case DCF model estimates the intrinsic value of Alnylam Pharmaceuticals, Inc. (ALNY) at $211.15 per share, compared with a market price of $248.68, a margin of safety of -17.8%. The base case assumes 19.6% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $177.85 to $248.64. 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 Alnylam Pharmaceuticals, Inc. (ALNY) Undervalued?
At the current price of $248.68, ALNY trades above the base-case intrinsic value estimate by a meaningful margin. By this model the stock looks expensive, though faster growth than assumed would change the picture.
COMPETITIVE MOAT
↑RNAi Platform Dominance
Alnylam possesses a leading, proprietary RNA interference (RNAi) platform. This deep scientific expertise and established infrastructure create significant barriers to entry for competitors seeking to replicate their gene-silencing therapies.
↑Strong Intellectual Property Portfolio
The company holds a robust patent portfolio covering its RNAi technology and specific drug candidates. This extensive IP protection provides a durable competitive advantage and limits the ability of others to develop similar treatments.
↑First-Mover Advantage in TTR Amyloidosis
Alnylam established a strong first-mover position with its TTR-silencing therapies. This early market penetration and established patient/physician familiarity create switching costs and brand loyalty.
INVESTMENT RISKS
↓Pipeline Drug Development Failures
Alnylam's future growth heavily relies on the successful development and commercialization of its pipeline. Clinical trial failures or unexpected safety issues for unapproved drugs pose a substantial risk to revenue and market position.
↓Pricing and Reimbursement Challenges
The high cost of novel gene-silencing therapies can lead to significant pricing and reimbursement pressures from payers. Difficulty in securing favorable reimbursement could limit market access and impact profitability.
↓Litigation and Legal Challenges
Recent investor alerts suggest potential legal scrutiny. Litigation related to intellectual property, securities, or other matters could result in significant financial costs and reputational damage.
Base case
ALNY base case valuation
Intrinsic Value
$211.15
Margin of safety
-17.8%
Expected annual return
-3.2%
Base case assumptions: 19.6% annual growth, 10.0% discount rate, 30x 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 ALNY valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Alnylam Pharmaceuticals, Inc. respond.
Open DCF Calculator for ALNYCompany Overview
Alnylam Pharmaceuticals, Inc. is a biopharmaceutical company primarily dedicated to the discovery, development, and commercialization of innovative therapeutic solutions leveraging ribonucleic acid interference (RNAi) technology. Its robust pipeline of RNAi-based treatments addresses a range of critical therapeutic areas, including inherited genetic disorders, cardio-metabolic conditions, hepatic infectious diseases, and central nervous system (CNS) and ocular disorders. Currently, Alnylam offers several approved therapies: ONPATTRO (patisiran) for adults suffering from polyneuropathy associated with hereditary transthyretin-mediated amyloidosis; GIVLAARI for adult patients with acute hepatic porphyria (AHP); and OXLUMO (lumasiran) for primary hyperoxaluria type 1 (PH1). Beyond its commercial portfolio, the company maintains an active development pipeline. Key investigational therapies include givosiran, aimed at adolescent patients with AHP; patisiran, being explored for transthyretin amyloidosis (ATTR) with cardiomyopathy; cemdisiran for complement-mediated disorders; ALN-AAT02 for AAT deficiency-associated liver disease; ALN-HBV02 for chronic hepatitis B virus infection; Zilebesiran for hypertension; and ALN-HSD for non-alcoholic steatohepatitis (NASH). Additionally, other candidates such as Fitusiran for hemophilia and bleeding disorders, Inclisiran for hypercholesterolemia, an expanded indication for lumasiran for advanced PH1 and recurrent kidney stones, and vutrisiran for ATTR amyloidosis (currently in Phase 3 clinical trials) are also progressing. Alnylam also engages in strategic alliances with other pharmaceutical leaders. Notable collaborations include those with Regeneron Pharmaceuticals, Inc., focused on discovering and developing RNAi therapeutics for ocular and CNS targets, and with Sanofi Genzyme for broader RNAi therapeutic development and commercialization efforts. Further licensing and partnership agreements are in place with entities such as Novartis AG, Vir Biotechnology, Inc., Dicerna Pharmaceuticals, Inc., Ionis Pharmaceuticals, Inc., and PeptiDream, Inc. Established in 2002, Alnylam Pharmaceuticals maintains its corporate headquarters in Cambridge, Massachusetts.
Financial Metrics — ALNY Stock Valuation Data
Revenue/Share (TTM)
$36.06
FCF/Share (TTM)
$4.07
ROIC (TTM)
24.4%
ROE (TTM)
93.6%
P/FCF
61.3x
EV/EBITDA
28.5x
FCF Yield
1.63%
Debt/Equity
0.94x
Based on trailing twelve-month data, ALNY shows a free cash flow per share of $4.07 and a ROIC of 24.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 61.3x and FCF yield of 1.63% are important context metrics when evaluating ALNY's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of ALNY?
Alnylam Pharmaceuticals, Inc. currently generates $4.07 in free cash flow per share. At the current price of $248.68, 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 ALNY undervalued?
ALNY trades at a P/FCF ratio of 61.3x with a free cash flow yield of 1.63%. A high P/FCF means investors are paying more per dollar of free cash flow, which usually reflects expectations of future growth. However, whether ALNY 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 ALNY stock using DCF?
To perform a DCF valuation on Alnylam Pharmaceuticals, Inc.: (1) Start with the trailing free cash flow per share ($4.07) 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 ALNY's risk profile — with a debt-to-equity of 0.94x, 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 ALNY?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Alnylam 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. ALNY's ROIC of 24.4% reflects how efficiently the company converts invested capital into profit.
How does WACC affect ALNY stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ALNY, with a debt-to-equity ratio of 0.94x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 28.5x, 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 ALNY 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 ALNY 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.