Regeneron Pharmaceuticals, Inc. (REGN) Company Bio
Regeneron Pharmaceuticals is a leading science-based biopharmaceutical company based in Tarrytown, New York that discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions. Regeneron commercializes medicines for eye diseases, high LDL-cholesterol and a rare inflammatory condition and has product candidates in development in other areas of high unmet medical need, including oncology, rheumatoid arthritis, asthma, and atopic dermatitis. The company was founded in 1988 and is based in Tarrytown, New York.
REGN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Regeneron Pharmaceuticals Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Regeneron Pharmaceuticals Inc ranked in the 43th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 9.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for REGN, they are:
Interest coverage, a measure of earnings relative to interest payments, is 81.43 -- which is good for besting 92.9% of its peer stocks (US stocks in the Healthcare sector with positive cash flow).
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately only 5.63% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
REGN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 62.58% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as REGN, try CRL, ARNA, GILD, ANGO, and ADMT.