Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Regeneron Pharmaceuticals, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 9.5% to 5.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 152, DPO 122, DIO 465). At a 7.7% WACC with mid-year discounting, the terminal value (77% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $890.00 per share, suggesting REGN is undervalued by 17.0% at the current price of $760.77.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 5,784 | 6,379 | 6,886 | 7,431 | 7,822 | 8,017 |
| (−) Net Interest | 66 | 73 | 78 | 85 | 89 | 91 |
| (+) D&A | 745 | 803 | 872 | 888 | 954 | 978 |
| EBITDA | 6,594 | 7,255 | 7,836 | 8,403 | 8,865 | 9,086 |
| (−) Tax | 596 | 657 | 710 | 766 | 806 | — |
| (−) CapEx | 846 | 933 | 1,007 | 1,087 | 1,144 | — |
| (−) ΔWC | 798 | 906 | 771 | 829 | 595 | — |
| Free Cash Flow (FCF) | 4,355 | 4,759 | 5,348 | 5,721 | 6,320 | — |
| Peers' EBITDA Multiple | 11.8x | |||||
| Terminal Value | 107,673 | |||||
| WACC / Discount Rate | 7.67% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 4,197 | 4,260 | 4,446 | 4,417 | 4,531 | 74,399 |
| Enterprise Value | 96,249 | |||||
| Projection Period | 21,850 | 22.7% | ||||
| Terminal Value | 74,399 | 77.3% | ||||
| (−) Current Net Debt | (412) | |||||
| Equity Value | 96,661 | |||||
| (÷) Outstanding Shares | 109M | |||||
| Fair Price | $890 | +17.0% | ||||
| WACC \ EV/EBITDA Exit Multiple | 7.8x | 9.8x | 11.8x | 13.8x | 15.8x |
|---|---|---|---|---|---|
| 5.7% | $713 | $840 | $967 | $1094 | $1221 |
| 6.7% | $685 | $806 | $928 | $1049 | $1170 |
| 7.7% | $659 | $774 | $890 | $1006 | $1121 |
| 8.7% | $634 | $744 | $854 | $965 | $1075 |
| 9.7% | $610 | $715 | $821 | $926 | $1032 |
Current price: $760.77. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.