Cheap and healthy — worth a proper look.
The math shows a margin of safety, and nothing is obviously deteriorating.
Price against fair value
Free cash flow — 5-year history ($B)
What the math is really telling you. Watch whether cash flow is compounding — that, more than any single year, is what a value read hangs on.
The read — lights & verdict
- UndervaluedFair value ~$864 vs $656 — a margin of safety of 32%.
- Price assumes a modest step-upPriced for ~0%/yr vs a -2.7%/yr record — a stretch, not heroic.
- Revenue still growingUp 1.0% last year — demand isn't the problem.
- Cash flow flat-to-downFree cash flow ~-2.7%/yr — big, but not compounding. The crux for a value buyer.
- Fortress balance sheetNet cash positive (+$16B) — little solvency risk.
How this was built. Every figure is computed from Regeneron Pharmaceuticals, Inc.'s SEC filings — no estimates, no AI. Two-stage DCF: 9% discount rate, 5% free-cash-flow growth for 10 years, 2.5% terminal. Free cash flow is operating cash flow less capital spending. Net cash is cash and marketable securities less borrowings, commercial paper and finance leases; operating leases are disclosed but never counted as debt. Fundamentals are from the FY25 annual report and change only when a new one is filed. Price of $656.01 taken 2026-07-24 (founder-supplied CSV, July 2026) — it is not live and does not move during the day.