Using the industry peer median P/E multiple (trailing + forward), Bio-Techne Corporation (TECH) has a fair value of $20.84 based on 3 comparable companies in the Biotechnology industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Bio-Techne CorporationTECH | 8,418 | 114.6x | 26.6x |
| Vertex Pharmaceuticals IncorporatedVRTX | 115,820 | 29.8x | 23.6x |
| Regeneron Pharmaceuticals, Inc.REGN | 79,023 | 18.3x | 16.8x |
| Incyte CorporationINCY | 18,475 | 14.5x | 12.4x |
| Industry Median | 18.3x | 16.8x | |
| (*) Profit after tax | 73 | 317 | |
| Equity Value | 1,346 | 5,312 | |
| (/) Outstanding shares | 160 | 160 | |
| Fair Price | $8 | $33 | |
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.