What Recent Earnings Reveal About Bio-Techne’s Valuation in 2025

Thinking about whether to buy, hold, or walk away from Bio-Techne? You are not alone. When a stock’s numbers tell a story this mixed, it is only natural to start digging a little deeper. After all, Bio-Techne has served up a rollercoaster ride lately. Over the last seven days, the stock slid 6.8%, even though the month before that saw a surge of 15.1%. Yet, zoom out a bit and returns from the start of the year are down 17.9%, while its one-year performance sits in the red by nearly 20%.

This volatility is not happening in a vacuum. Biotech sector shifts, especially around new regulation and changing demand for life science reagents, have played a part in investor sentiment. The shifting landscape has left some investors re-evaluating how much to pay for growth and stability. There is an undercurrent of skepticism in risk perceptions but also room for growth if sector tailwinds pick up.

So, what is Bio-Techne really worth? According to a basic valuation check, where a company can score up to 6 points for being undervalued on different metrics, Bio-Techne stands at a 2 out of 6. That means undervaluation is not happening across the board, but there are signals worth closer inspection.

Let’s break down how those valuation methods stack up and, later, reveal one approach that might be the most powerful of all for investors looking for an edge.

Bio-Techne scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Bio-Techne Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model is widely used to estimate a company’s intrinsic value by projecting its future cash flows and discounting them back to their present value. The aim is to weigh the value of money Bio-Techne will generate over time against the value of a dollar today.

For Bio-Techne, analysts and modelers project the company’s free cash flow (FCF), which currently stands at about $241.7 million for the latest twelve months. Looking ahead, FCF is expected to grow substantially, with estimates reaching $791.7 million by 2035. Projections through 2027, directly sourced from market analysts, provide the early foundation. After that, estimates are extrapolated based on historical growth, providing a picture of continued, though moderating, momentum over the next decade.

All these anticipated cash flows are translated to today’s dollars using the DCF approach. The model arrives at an estimated fair value for Bio-Techne shares of $86.08. Given recent prices, this implies the stock is about 31.9% undervalued compared to its intrinsic value based on cash flow forecasts.

Result: UNDERVALUED

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

Our Discounted Cash Flow (DCF) analysis suggests Bio-Techne is undervalued by 31.9%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: Bio-Techne Price vs Earnings

The Price-to-Earnings (PE) ratio is a widely used metric for valuing profitable companies like Bio-Techne, as it connects a company’s market price to its earnings power. For established firms generating steady profits, the PE ratio offers a quick gauge of how much investors are willing to pay for each dollar of earnings.

However, determining what constitutes a “fair” PE is not always straightforward. Factors such as growth prospects, perceived risk, and the stability of the business all shape whether a higher or lower PE is justified. Generally, companies that are growing rapidly or carry lower risk fetch premium multiples, while slower or riskier businesses tend to trade at lower ones.

Bio-Techne’s current PE stands at 124.5x, which is significantly higher than the Life Sciences industry average of 31.7x and the peer average of 26.8x. This headline number might seem excessive on the surface, but context is crucial. That is where Simply Wall St’s proprietary “Fair Ratio” comes in. For Bio-Techne, this figure is pinpointed at 23.8x. This value is calculated by weighing up important factors specific to the company, including its earnings growth outlook, profit margins, risk profile, market capitalization, and the characteristics of its sector.

The benefit of using the Fair Ratio is that it goes beyond a simple comparison to industry or peer averages. It customizes expectations for the business in question, resulting in a more tailored and reliable valuation benchmark. This matters because not all companies are created equal, even within the same industry.

Since Bio-Techne’s actual PE of 124.5x is well above its fair value benchmark of 23.8x, the stock appears overvalued by this measure.

Result: OVERVALUED

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 Bio-Techne Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your unique, story-driven perspective on a company like Bio-Techne, blending your view of its prospects with hard numbers such as future revenue, earnings, and margins to arrive at a personalized fair value.

Instead of relying solely on broad metrics, Narratives help you clearly link the business story, whether it is a wave of innovation, regulatory hurdles, or major global shifts, to specific financial forecasts and what you consider a fair price for the shares. On Simply Wall St's platform, Narratives are an easy-to-use feature on the Community page, trusted by millions of investors to visualize and explain their investment thesis.

You can rapidly compare your calculated fair value to the stock’s current price, deciding if it is time to buy, hold, or step aside. In addition, because Narratives update automatically as new news and earnings arrive, you are always working with the latest information. For example, some Bio-Techne investors may see robust growth in advanced therapies and set a value as high as $75.0 per share, while others may be wary of regulatory risks and peg it as low as $53.0, showcasing just how flexible and dynamic Narratives are for guiding smart decisions.

Do you think there's more to the story for Bio-Techne? 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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