Biogen Inc. (BIIB) Intrinsic Value & DCF Valuation
Drug Manufacturers - General · NASDAQ
Current Price
$243.74
Intrinsic Value
$235.08
-3.7% margin of safety
What Is Biogen Inc.'s Intrinsic Value?
As of 2026-10-28, the base-case DCF model estimates the intrinsic value of Biogen Inc. (BIIB) at $235.08 per share, compared with a market price of $243.74, a margin of safety of -3.7%. The base case assumes 2.5% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $185.54 to $292.55. 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 Biogen Inc. (BIIB) Undervalued?
At $243.74, BIIB trades about 3.7% above the base-case intrinsic value estimate, a modest premium. By this model the price sits within a normal band, though faster growth than assumed would change the picture.
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 valuation
Intrinsic Value
$235.08
Margin of safety
-3.7%
Expected annual return
-0.7%
Base case assumptions: 2.5% annual growth, 10.0% discount rate, 15.52x exit multiple, 5 year projection. Data as of 2026-10-28.
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 BIIB valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Biogen Inc. respond.
Open DCF 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 Stock Valuation Data
Revenue/Share (TTM)
$69.72
FCF/Share (TTM)
$15.86
ROIC (TTM)
2.3%
ROE (TTM)
1.9%
P/FCF
15.5x
EV/EBITDA
35.5x
FCF Yield
6.44%
Debt/Equity
0.41x
Based on trailing twelve-month data, BIIB shows a free cash flow per share of $15.86 and a ROIC of 2.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 15.5x and FCF yield of 6.44% are important context metrics when evaluating BIIB's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of BIIB?
Biogen Inc. currently generates $15.86 in free cash flow per share. At the current price of $243.74, 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 BIIB undervalued?
BIIB trades at a P/FCF ratio of 15.5x with a free cash flow yield of 6.44%. This P/FCF is in a moderate range. However, whether BIIB 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 BIIB stock using DCF?
To perform a DCF valuation on Biogen Inc.: (1) Start with the trailing free cash flow per share ($15.86) as the base, (2) project future FCF growth over 5-10 years based on Drug Manufacturers - General industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting BIIB's risk profile — with a debt-to-equity of 0.41x, 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 BIIB?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Biogen Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Drug Manufacturers - General trends, then discounting those amounts to today's dollars. BIIB's ROIC of 2.3% means the company's return on invested capital sits below the level that typically clears its cost of capital.
How does WACC affect BIIB stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For BIIB, with a debt-to-equity ratio of 0.41x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 35.5x, 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 BIIB 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 BIIB with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair 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.