Alnylam Pharmaceuticals, Inc. (ALNY) Stock Valuation — PE Analysis
Biotechnology · NASDAQ
Current Price
$225.09
PE Ratio (TTM)
37.5x
Intrinsic Value
$378.39
+40.5% margin of safety
COMPETITIVE MOAT
↑RNAi Platform Leadership
Alnylam possesses a leading, proprietary RNA interference platform. This deep scientific expertise and established infrastructure create significant barriers to entry for competitors.
↑First-Mover Advantage
As a pioneer in RNAi therapeutics, Alnylam has secured early market access and built a strong brand reputation. This allows them to capture market share before rivals emerge.
↑Intellectual Property Portfolio
A robust patent portfolio protects Alnylam's core technologies and drug candidates. This shields their innovations from immediate imitation and ensures long-term exclusivity.
INVESTMENT RISKS
↓Regulatory Scrutiny and Approval
The biotechnology industry faces stringent regulatory hurdles. Delays or rejections in drug approvals can severely impact Alnylam's growth prospects and financial performance.
↓Intense Drug Development Competition
The Alzheimer's and cardiovascular disease markets are highly competitive. Alnylam faces pressure from numerous companies developing novel therapies, potentially diluting market share.
↓Pricing and Reimbursement Challenges
New and innovative therapies often face challenges with pricing and reimbursement from payers. This can limit patient access and impact the commercial success of Alnylam's drugs.
Base case
ALNY base case PE valuation
A base case PE valuation for ALNY estimates a fair value of about $378.39 per share, against a current price of $225.09. The model assumes 19.4% annual earnings growth, a 37.14x target PE multiple, and a 10% discount rate.
Intrinsic Value
$378.39
Margin of safety
+40.5%
Expected annual return
+10.9%
Base case assumptions: 19.4% annual earnings growth, 37.14x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
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 ALNY PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Alnylam Pharmaceuticals, Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
37.5x
PEG Ratio
0.01
Earnings Yield
2.69%
ROE (TTM)
93.6%
Revenue/Share (TTM)
$36.06
Debt/Equity
0.94x
Frequently Asked Questions
What is the PE ratio of ALNY?
The trailing twelve-month PE ratio of ALNY reflects how much investors pay per dollar of Alnylam Pharmaceuticals, Inc.'s earnings. This metric is most useful when compared to Biotechnology peers and the company's own historical range.
Is ALNY overvalued based on PE ratio?
ALNY's PE of 37.5x combined with a PEG ratio of 0.01 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 Biotechnology, a DCF analysis may be more appropriate.
How do I value ALNY stock using PE ratio?
To value Alnylam Pharmaceuticals, Inc. using PE: (1) Compare the current PE (37.5x) against the Biotechnology median to assess relative pricing, (2) check the PEG ratio (0.01) 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 ALNY?
ALNY's PEG ratio is 0.01, calculated by dividing the PE ratio (37.5x) 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 ALNY stock valuation?
PE ratio gives a quick relative read — how ALNY is priced versus Biotechnology peers. DCF provides an absolute value based on projected free cash flows. For ALNY, with a strong ROE of 93.6%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. 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 ALNY 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 ALNY with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.