Using the industry peer median P/E multiple (trailing + forward), Biogen Inc. (BIIB) has a fair value of $290.18 based on 7 comparable companies in the Drug Manufacturers - General industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Biogen Inc.BIIB | 28,036 | 21.6x | 12.1x |
| DexCom, Inc.DXCM | 25,958 | 31.8x | 26.7x |
| Labcorp Holdings Inc.LH | 22,295 | 25.7x | 15.1x |
| STERIS plcSTE | 22,031 | 36.2x | 26.1x |
| Quest Diagnostics IncorporatedDGX | 22,003 | 22.6x | 20.2x |
| Incyte CorporationINCY | 18,475 | 14.5x | 12.4x |
| Waters CorporationWAT | 18,034 | 28.2x | 21.1x |
| Insulet CorporationPODD | 15,416 | 62.9x | 34.6x |
| Industry Median | 28.2x | 21.1x | |
| (*) Profit after tax | 1,293 | 2,312 | |
| Equity Value | 36,427 | 48,712 | |
| (/) Outstanding shares | 147 | 147 | |
| Fair Price | $248 | $332 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.