Does Regeneron Offer Value After Shares Slide 21.7% Year to Date in 2025?

If you have ever wondered whether now is the right time to buy, hold, or reconsider Regeneron Pharmaceuticals, you are definitely not alone. The company has been on quite a ride, with shares recently closing at $560. Quick glances at the stock chart show a stark contrast between short-term and long-term moves, with the price down 2.3% over the past week, and only slightly lower at 0.3% for the last month. However, the picture becomes far more dramatic if you zoom out: year to date, Regeneron’s shares have slid a sharp 21.7%, and they are down 51.2% over the last twelve months. For those who have held on for three years, the decline is 20.8%, but if you had faith since five years ago, you have eked out a modest 1.3% gain.

Market watchers have taken notice of both the volatility and the changing risk appetite, especially in the context of wider market shifts in biotech and healthcare innovation. Despite the ups and downs, one number leaps out: Regeneron currently boasts a sky-high value score of 6 out of 6, meaning it checks every box analysts typically use to spot an undervalued stock. That is a rare feat and one that deserves a closer investigation.

So, what does that value score really mean, and how should you approach it if you are thinking about your next move? Up next, let’s break down the valuation methods themselves, then explore whether there is an even more insightful way to assess what Regeneron is really worth in today’s market.

Why Regeneron Pharmaceuticals is lagging behind its peers

Approach 1: Regeneron Pharmaceuticals Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model is a widely used method that estimates a company's intrinsic value by projecting its future cash flows and discounting them back to today's dollars. Essentially, it tries to answer what the business is worth right now, based on what it can generate for shareholders in the coming years.

For Regeneron Pharmaceuticals, analysts estimate the company generated $3.40 billion in Free Cash Flow over the last twelve months. Projecting ahead, Free Cash Flow is expected to rise significantly, reaching $6.02 billion by 2029. The initial five years of projections are drawn from analyst estimates, while subsequent numbers are extrapolated based on reasonable growth assumptions. Over the next decade, these forecasts show a steady and healthy expansion in the company’s financial performance.

According to the DCF model, the intrinsic fair value of a Regeneron share comes out to $1,548.94. Compared to the recent closing price of $560, this suggests the stock is trading at a substantial 63.8 percent discount to what the underlying business could actually be worth, based on future cash flow potential.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Regeneron Pharmaceuticals.

Our Discounted Cash Flow (DCF) analysis suggests Regeneron Pharmaceuticals is undervalued by 63.8%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: Regeneron Pharmaceuticals Price vs Earnings

The Price-to-Earnings (PE) ratio is often the go-to valuation metric for consistently profitable companies like Regeneron Pharmaceuticals. It works well because it relates the current share price to the company’s actual earnings, giving investors a sense of how much they are paying for each dollar of profit. A reasonable PE ratio can shift significantly depending on expected future growth and the level of risk. Faster-growing or lower-risk companies generally command higher multiples.

Currently, Regeneron trades at a PE ratio of 13x. That is not only below the biotech industry average of 15.3x, but also well under the peer average of 21.7x. On face value, this might suggest the company is undervalued compared to its immediate competitors and the broader sector. However, multiples alone do not always tell the full story, especially if growth and risk profiles differ widely.

This is where Simply Wall St’s proprietary “Fair Ratio” comes into play. The Fair Ratio considers Regeneron’s unique blend of earnings growth, industry landscape, profit margins, market cap, and company-specific risks. By weighing all these factors together, the Fair Ratio provides a much clearer guide than simply comparing to sector or peer averages. For Regeneron, the Fair Ratio is calculated to be 24.9x, which is substantially higher than its current PE ratio of 13x.

With Regeneron’s shares currently trading at nearly half of its estimated Fair Ratio, this approach presents a strong argument that the stock is undervalued relative to its underlying fundamentals.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Regeneron Pharmaceuticals Narrative

Earlier, we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives. Narratives are simply your own story or point of view about a company’s future, where you connect what is happening in the business with your assumptions for future revenue, earnings, and margins, and then see how that story translates into a fair value for the stock.

A Narrative helps you link Regeneron’s real-world story to a financial forecast and, in turn, to an estimated fair value. It is a straightforward and accessible tool available directly on Simply Wall St’s Community page, where millions of investors share and update their perspectives in real time.

With Narratives, you can easily compare a fair value, as calculated from your forecast, to the current market price to decide if now is a good time to buy, hold, or sell. Narratives update dynamically as new news or earnings reports come in, helping you stay on top of the latest developments with minimal effort.

For example, one investor’s Narrative might price Regeneron at $890, expecting stronger-than-consensus revenue and margin growth. Another more cautious view forecasts a fair value of $543, reflecting concerns about competition and industry pressures. Narratives capture your beliefs and make your investment decisions clearer and more personalized than ever.

Do you think there's more to the story for Regeneron Pharmaceuticals? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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