Using the industry peer median P/E multiple (trailing + forward), Incyte Corporation (INCY) has a fair value of $155.65 based on 5 comparable companies in the Biotechnology industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Incyte CorporationINCY | 18,611 | 14.5x | 12.4x |
| Biogen Inc.BIIB | 28,066 | 21.7x | 12.1x |
| Quest Diagnostics IncorporatedDGX | 22,003 | 22.6x | 20.2x |
| Waters CorporationWAT | 18,034 | 28.2x | 21.1x |
| West Pharmaceutical Services, Inc.WST | 18,029 | 36.8x | 31.2x |
| Zimmer Biomet Holdings, Inc.ZBH | 17,579 | 25.0x | 10.6x |
| Industry Median | 25.0x | 20.2x | |
| (*) Profit after tax | 1,287 | 1,505 | |
| Equity Value | 32,148 | 30,330 | |
| (/) Outstanding shares | 201 | 201 | |
| Fair Price | $160 | $151 | |
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.