Seagen Valuation

Is SGEN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SGEN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SGEN ($228.74) is trading above our estimate of fair value ($199.98)

Significantly Below Fair Value: SGEN is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for SGEN?

Key metric: As SGEN is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SGEN. This is calculated by dividing SGEN's market cap by their current revenue.
What is SGEN's PS Ratio?
PS Ratio18.8x
SalesUS$2.30b
Market CapUS$43.15b

Price to Sales Ratio vs Peers

How does SGEN's PS Ratio compare to its peers?

The above table shows the PS ratio for SGEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.8x
BIIB Biogen
2.4x1.3%US$22.6b
REGN Regeneron Pharmaceuticals
5.8x6.8%US$80.1b
GILD Gilead Sciences
3.9x2.4%US$109.2b
HZNP Horizon Therapeutics
7.3x8.3%US$26.6b
SGEN Seagen
18.8x22.6%US$43.2b

Price-To-Sales vs Peers: SGEN is expensive based on its Price-To-Sales Ratio (18.8x) compared to the peer average (5.6x).


Price to Sales Ratio vs Industry

How does SGEN's PS Ratio compare vs other companies in the US Biotechs Industry?

131 CompaniesPrice / SalesEstimated GrowthMarket Cap
GILD Gilead Sciences
3.9x2.4%US$109.25b
BIIB Biogen
2.4x1.3%US$22.65b
MRNA Moderna
2.8x7.2%US$14.35b
INCY Incyte
3.4x8.9%US$13.59b
SGEN 18.8xIndustry Avg. 10.1xNo. of Companies131PS01632486480+
131 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SGEN is expensive based on its Price-To-Sales Ratio (18.8x) compared to the US Biotechs industry average (11.1x).


Price to Sales Ratio vs Fair Ratio

What is SGEN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SGEN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio18.8x
Fair PS Ratio4.5x

Price-To-Sales vs Fair Ratio: SGEN is expensive based on its Price-To-Sales Ratio (18.8x) compared to the estimated Fair Price-To-Sales Ratio (4.5x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SGEN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$228.91
0%
0.1%US$229.00US$228.00n/a13
Nov ’25n/a
US$228.91
0%
0.1%US$229.00US$228.00n/a13
Oct ’25n/a
US$228.91
0%
0.1%US$229.00US$228.00n/a13
Sep ’25n/a
US$228.91
0%
0.1%US$229.00US$228.00n/a13
Aug ’25n/a
US$228.91
0%
0.1%US$229.00US$228.00n/a13
Jul ’25n/a
US$228.91
0%
0.1%US$229.00US$228.00n/a13
Jun ’25n/a
US$228.91
0%
0.1%US$229.00US$228.00n/a13
May ’25n/a
US$228.91
0%
0.1%US$229.00US$228.00n/a13
Apr ’25n/a
US$228.91
0%
0.1%US$229.00US$228.00n/a13
Mar ’25n/a
US$228.91
0%
0.1%US$229.00US$228.00n/a13
Feb ’25n/a
US$228.91
0%
0.1%US$229.00US$228.00n/a13
Jan ’25n/a
US$228.91
0%
0.1%US$229.00US$228.00n/a13
Dec ’24US$212.72
US$225.41
+6.0%
5.6%US$229.00US$180.00n/a14
Nov ’24US$214.37
US$225.41
+5.2%
5.6%US$229.00US$180.00n/a14
Oct ’24US$212.15
US$225.41
+6.3%
5.6%US$229.00US$180.00n/a14
Sep ’24US$207.91
US$225.41
+8.4%
5.6%US$229.00US$180.00n/a14
Aug ’24US$192.45
US$225.41
+17.1%
5.6%US$229.00US$180.00n/a14
Jul ’24US$192.46
US$225.65
+17.2%
5.4%US$229.00US$180.00n/a15
Jun ’24US$194.67
US$220.60
+13.3%
9.9%US$229.00US$153.00n/a15
May ’24US$199.16
US$220.60
+10.8%
9.9%US$229.00US$153.00n/a15
Apr ’24US$202.47
US$215.80
+6.6%
12.4%US$229.00US$153.00n/a15
Mar ’24US$178.23
US$167.90
-5.8%
11.4%US$215.00US$141.00n/a21
Feb ’24US$139.03
US$160.67
+15.6%
12.2%US$213.00US$135.00n/a21
Jan ’24US$128.51
US$164.73
+28.2%
12.9%US$213.00US$135.00n/a22
Dec ’23US$121.02
US$164.77
+36.2%
12.9%US$213.00US$135.00US$212.7222
Nov ’23US$126.69
US$168.76
+33.2%
12.4%US$213.00US$136.00US$214.3721

Analyst Forecast: Target price is less than 20% higher than the current share price.


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