Regeneron Pharmaceuticals, Inc. (REGN) Stock Valuation — DCF Analysis
Biotechnology · NASDAQ
Current Price
$612.14
Intrinsic Value
$816.18
+25.0% margin of safety
COMPETITIVE MOAT
↑Dupixent & Eylea HD Dominance
Strong sales growth from Dupixent and Eylea HD in Q1 demonstrates significant market penetration and patient adoption. These blockbuster drugs provide a substantial revenue stream and competitive advantage.
↑Pipeline Expansion in Oncology
The expanded CytomX deal for bispecific cancer therapies, with potential milestones up to $4 billion, highlights Regeneron's commitment to innovation. This strategic move aims to secure future growth in a high-demand therapeutic area.
↑Proprietary Technology Platform
Regeneron's established genetic engineering and antibody discovery technologies, like VelocImmune, are a core strength. This platform enables the efficient development of novel therapeutics, creating a barrier to entry for competitors.
INVESTMENT RISKS
↓Eylea Sales Decline & Competition
The plunge in Eylea sales and intensifying competition pose a significant threat. This erosion of a key revenue driver could impact overall financial performance and market position.
↓Investor Lawsuits
Ongoing investigations by law firms like Pomerantz LLP suggest potential investor concerns. Such legal actions can lead to reputational damage and financial liabilities.
↓Pipeline Execution Uncertainty
While the pipeline shows promise, the success of new drug candidates in metabolic, ophthalmology, and rare diseases is not guaranteed. Clinical trial failures or regulatory hurdles could derail future growth.
Base case
REGN base case valuation
A base case discounted cash flow model for REGN estimates an intrinsic value of about $816.18 per share, against a current price of $612.14. The model assumes 10.3% annual free cash flow growth, a 10.0% discount rate, and a 15x exit multiple.
Intrinsic Value
$816.18
Margin of safety
+25.0%
Expected annual return
+5.9%
Base case assumptions: 10.3% annual growth, 10.0% discount rate, 15x exit multiple, 5 year projection. Data as of 2026-06-12.
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 REGN valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Regeneron Pharmaceuticals, Inc. respond.
Open DCF Calculator for REGNCompany Overview
Regeneron Pharmaceuticals, Inc. is a global biopharmaceutical enterprise focused on discovering, inventing, developing, manufacturing, and bringing to market medical treatments for a wide array of illnesses. Its therapeutic portfolio includes EYLEA, an injection used to treat various ophthalmic conditions such as wet age-related macular degeneration, diabetic macular edema, myopic choroidal neovascularization, diabetic retinopathy, and macular edema resulting from retinal vein occlusion (both central and branch). Other significant offerings are Dupixent, an injectable solution for atopic dermatitis and asthma in both adults and pediatric patients; Libtayo, indicated for metastatic or locally advanced cutaneous squamous cell carcinoma; Praluent, an injection prescribed for adults with heterozygous familial hypercholesterolemia or clinical atherosclerotic cardiovascular disease; REGEN-COV for COVID-19; and Kevzara, a solution targeting rheumatoid arthritis in adult patients. Furthermore, Regeneron provides Inmazeb for infections caused by Zaire ebolavirus; ARCALYST, an injection for cryopyrin-associated periodic syndromes, including familial cold auto-inflammatory syndrome and Muckle-Wells syndrome; and ZALTRAP, an intravenous infusion used in the treatment of metastatic colorectal cancer. In addition to its existing product lineup, the company is actively engaged in developing novel product candidates aimed at addressing unmet medical needs in areas such as ocular diseases, allergic and inflammatory conditions, cardiovascular and metabolic disorders, infectious diseases, rare diseases, cancer, pain management, and hematologic conditions. Regeneron maintains extensive collaboration and licensing agreements with a diverse range of partners, including Sanofi, Bayer, Teva Pharmaceutical Industries Ltd., Mitsubishi Tanabe Pharma Corporation, Alnylam Pharmaceuticals, Inc., Roche Pharmaceuticals, and Kiniksa Pharmaceuticals, Ltd. It also holds agreements with entities such as the U.S. Department of Health and Human Services, Zai Lab Limited, Intellia Therapeutics, Inc., the Biomedical Advanced Research Development Authority, and AstraZeneca PLC. The company was founded in 1988 and its corporate headquarters are situated in Tarrytown, New York.
Financial Metrics — REGN Stock Valuation Data
Revenue/Share (TTM)
$143.46
FCF/Share (TTM)
$39.95
ROIC (TTM)
8.5%
ROE (TTM)
14.3%
P/FCF
15.2x
EV/EBITDA
10.9x
FCF Yield
6.59%
Debt/Equity
0.09x
Based on trailing twelve-month data, REGN shows a free cash flow per share of $39.95 and a ROIC of 8.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 15.2x and FCF yield of 6.59% are important context metrics when evaluating REGN's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of REGN?
Regeneron Pharmaceuticals, Inc. currently generates $39.95 in free cash flow per share. At the current price of $612.14, 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 REGN undervalued?
REGN trades at a P/FCF ratio of 15.2x with a free cash flow yield of 6.59%. This P/FCF is in a moderate range. However, whether REGN 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 REGN stock using DCF?
To perform a DCF valuation on Regeneron Pharmaceuticals, Inc.: (1) Start with the trailing free cash flow per share ($39.95) 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 REGN's risk profile — with a debt-to-equity of 0.09x, 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 REGN?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Regeneron 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. REGN's ROIC of 8.5% shows moderate capital returns.
How does WACC affect REGN stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For REGN, with a debt-to-equity ratio of 0.09x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 10.9x, 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 REGN 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 REGN with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.