DCF Tool

BIIB

Biogen Inc – Biological Product (except Diagnostic) Manufacturing
At Biogen, mission is clear: company is pioneer in neuroscience. Biogen discovers, develops and delivers worldwide innovative therapies for people living with serious neurological and neurodegenerative diseases as well as related therapeutic adjacencies. One of the world's first global biotechnology companies, Biogen was founded in 1978 by Charles Weissmann, Heinz Schaller, Kenneth Murray and Nobel Prize winners Walter Gilbert and Phillip Sharp. Today Biogen has the leading portfolio of medicines to treat multiple sclerosis, has introduced the first approved treatment for spinal muscular atrophy, commercializes biosimilars of advanced biologics and is focused on advancing research programs in multiple sclerosis and neuroimmunology, Alzheimer's disease and dementia, neuromuscular disorders, movement disorders, ophthalmology, neuropsychiatry, immunology, acute neurology and neuropathic pain.
Analysis Results
Intrinsic Value $1,345.99
Latest Price $267.00
Relative Value 80% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 13.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 7.48 6.98
2023 8.46 7.36
2024 9.57 7.76
2025 10.8 8.18
2026 12.2 8.62
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 238 billion. This corresponds to a present value of 156 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 38.9 billion. Adding in the terminal value gives a total present value of 195 billion.

There are presently 145.0 million outstanding shares, so the intrinsic value per share is 1345.99.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 15,713,000,000
Current Cash 7,605,000,000
Current Liabilities 8,596,400,000
Current Debt 1,998,200,000
Non-Cash Working Capital (NCWC) 1,509,800,000
Change in NCWC 975,000,000
EBIT 5,685,800,000
Tax Provision 105,000,000
Depreciation and Amortization 975,400,000
Capital Expenditure -553,800,000
Unlevered Free Cash Flow 6,914,710,263
Current Assets 6,887,100,000
Current Cash 2,610,100,000
Current Liabilities 3,742,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 534,800,000
Change in NCWC -3,100,000
EBIT 4,451,600,000
Tax Provision 992,300,000
Depreciation and Amortization 457,200,000
Capital Expenditure -424,800,000
Unlevered Free Cash Flow 3,606,667,360
Current Assets 8,381,800,000
Current Cash 4,475,900,000
Current Liabilities 4,863,800,000
Current Debt 1,495,800,000
Non-Cash Working Capital (NCWC) 537,900,000
Change in NCWC -269,800,000
EBIT 6,956,300,000
Tax Provision 1,158,000,000
Depreciation and Amortization 680,600,000
Capital Expenditure -669,500,000
Unlevered Free Cash Flow 5,554,423,188
Current Assets 7,640,900,000
Current Cash 3,538,000,000
Current Liabilities 3,295,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 807,700,000
Change in NCWC -11,600,000
EBIT 6,000,800,000
Tax Provision 1,425,600,000
Depreciation and Amortization 1,016,600,000
Capital Expenditure -770,600,000
Unlevered Free Cash Flow 4,785,145,677
Current Assets 7,873,300,000
Current Cash 3,689,000,000
Current Liabilities 3,368,200,000
Current Debt 3,200,000
Non-Cash Working Capital (NCWC) 819,300,000
Change in NCWC 397,400,000
EBIT 5,527,800,000
Tax Provision 2,458,700,000
Depreciation and Amortization 1,081,000,000
Capital Expenditure -1,842,800,000
Unlevered Free Cash Flow 2,513,423,034
Current Assets 8,732,200,000
Current Cash 4,895,100,000
Current Liabilities 3,419,900,000
Current Debt 4,700,000
Non-Cash Working Capital (NCWC) 421,900,000
Change in NCWC -277,000,000
EBIT 5,653,100,000
Tax Provision 1,237,300,000
Depreciation and Amortization 682,700,000
Capital Expenditure -727,700,000
Unlevered Free Cash Flow 3,913,183,796
Current Assets 6,700,300,000
Current Cash 3,428,500,000
Current Liabilities 2,577,700,000
Current Debt 4,800,000
Non-Cash Working Capital (NCWC) 698,900,000
Change in NCWC 88,181,000
EBIT 5,002,400,000
Tax Provision 1,161,600,000
Depreciation and Amortization 600,400,000
Capital Expenditure -643,000,000
Unlevered Free Cash Flow 3,825,892,197
Current Assets 4,672,673,000
Current Cash 1,845,384,000
Current Liabilities 2,219,706,000
Current Debt 3,136,000
Non-Cash Working Capital (NCWC) 610,719,000
Change in NCWC 403,299,000
EBIT 3,901,637,000
Tax Provision 989,942,000
Depreciation and Amortization 688,150,000
Capital Expenditure -287,751,000
Unlevered Free Cash Flow 3,722,914,178
Current Assets 3,184,934,000
Current Cash 1,222,729,000
Current Liabilities 1,758,279,000
Current Debt 3,494,000
Non-Cash Working Capital (NCWC) 207,420,000
Change in NCWC -127,197,000
EBIT 2,472,840,000
Tax Provision 601,014,000
Depreciation and Amortization 531,740,000
Capital Expenditure -246,281,000
Unlevered Free Cash Flow 2,027,773,831
Current Assets 3,244,337,000
Current Cash 1,705,710,000
Current Liabilities 1,657,389,000
Current Debt 453,379,000
Non-Cash Working Capital (NCWC) 334,617,000
Change in NCWC -40,556,000
EBIT 1,833,966,000
Tax Provision 470,554,000
Depreciation and Amortization 365,648,000
Capital Expenditure -261,182,000
Unlevered Free Cash Flow 1,431,548,268

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