Is There an Opportunity in Regeneron After $1 Billion Immunology Collaboration With Sanofi?

Thinking about what to do with Regeneron Pharmaceuticals stock right now? You are not alone. With a price tag near $589, and a recent uptick of about 3% over the last month, it is the kind of stock that gives investors something to talk about. Year to date, the story has not been as cheery, with shares sliding nearly 18% and trailing some biotech peers. But when you dig a bit deeper into the fundamentals, the narrative starts to shift from worry to opportunity.

Regeneron is not your average pharma company. Despite a challenging twelve months, analysts are still penciling in an upside of more than 20% from today’s levels. Add in consistent annual growth, with both revenue and net income up over 6%, and investors have reason to keep watching. Short-term volatility aside, the crucial question is whether the stock is giving buyers a rare value window.

Here is where things get interesting. Regeneron scores a 6 out of 6 on our value checklist, meaning it ticks every box for being undervalued in our analysis. Few names in pharma can say the same. That alone might have you thinking this is a clear buy, and we are about to break down exactly why.

We will walk through the main valuation approaches to see how Regeneron stacks up by the numbers. Stick around until the end for a simple, powerful shortcut that might help you make an even smarter decision.

Regeneron Pharmaceuticals delivered -50.6% returns over the last year. See how this stacks up to the rest of the Biotechs industry.

Approach 1: Regeneron Pharmaceuticals Cash Flows

The Discounted Cash Flow (DCF) model is used to estimate a company's true worth by projecting its future cash flows and discounting them back to today’s dollars. This method helps investors look beyond short-term fluctuations and focus on long-term value.

Regeneron Pharmaceuticals reported trailing twelve-month Free Cash Flow (FCF) of $3.4 billion. Looking ahead, analysts project significant growth, forecasting FCF to rise to around $8 billion by 2035. Based on these projections and using a two-stage model to capture both near-term growth and a longer steady-state, Regeneron's intrinsic value is estimated at $1,544 per share.

With the current stock price at roughly $589, this calculation suggests that Regeneron is trading at a 61.8% discount to its intrinsic value. According to this DCF analysis, it is 61.8% undervalued.

Result: UNDERVALUED

Our DCF analysis suggests Regeneron Pharmaceuticals is undervalued by 61.8%. Track this in your watchlist or portfolio, or discover more undervalued stocks based on DCF analysis.

Approach 2: Regeneron Pharmaceuticals Price vs Earnings

The Price-to-Earnings (PE) ratio is widely considered the preferred multiple for profitable companies because it directly measures how much investors are willing to pay for each dollar of earnings. For companies like Regeneron that consistently report profits, the PE ratio quickly highlights whether the stock is trading at an attractive value compared to its financial results.

The appropriate PE ratio for a stock depends on market expectations for growth and potential risks. A company with stronger expected earnings growth and lower risk typically justifies a higher PE, while slower growers or those facing more uncertainty often trade at lower multiples. Context matters, so comparing Regeneron to its biotech peers and broad industry averages adds nuance to the analysis.

Currently, Regeneron trades at a PE ratio of 13.7x. This is below both the average for biotechs (15.1x) and its key peer group (21.9x). Looking deeper, Simply Wall St’s proprietary “Fair Ratio” for Regeneron is calculated at 23.0x, taking into account its growth outlook, profitability, size, and sector risks. Since the current multiple is well below this fair value benchmark, shares appear undervalued using this approach.

Result: UNDERVALUED

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Upgrade Your Decision Making: Choose your Regeneron Pharmaceuticals Narrative

Beyond the numbers, investing becomes more meaningful and effective when you build a "Narrative." This is your personal story backed by specific assumptions about a company’s future, such as fair value, revenue, earnings, and margins.

A Narrative connects what you believe will shape Regeneron’s future—ranging from its scientific breakthroughs to challenges in competitive markets—directly to your financial forecast and estimated fair value.

Simply Wall St makes Narratives simple and actionable for everyone. The platform harnesses real-time data and enables you to join a worldwide community where millions of investors share, compare, and update their views.

Narratives help you decide when to take action by clearly showing if the fair value you believe in is above or below today’s share price. They adjust quickly with every new earnings release or headline.

For instance, some investors see Regeneron's future as especially bright and assign a fair value near $890 per share due to accelerating growth expectations. Others are more cautious and see fair value closer to $543. Your Narrative helps you define your stance and make decisions confidently.

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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