Regeneron Pharmaceuticals Inc (REGN) is overvalued and Vertex Pharmaceuticals Inc (VRTX) is overvalued.
Both trade above our estimate of their intrinsic value. REGN is the closer of the two: -23%, against -36% for VRTX.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.1% (average of 3 methods) values the shares at $652.24; the price of $803.90 is 23% above that value, and 76% of that value comes from beyond year five.
Leak Score 42/100 on 10 of 12 signals
Discounting its cash flows at 7.4% (average of 3 methods) values the shares at $380.05; the price of $514.99 is 36% above that value, and 82% of that value comes from beyond year five.
Leak Score 65/100 on 9 of 12 signals
| Metric | REGN | VRTX |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $803.90 | $514.99 |
| Intrinsic value | $652.24 | $380.05 |
| Margin of safety | -23% | -36% |
| Leak Score | 42/100 (10/12) | 65/100 (9/12) |
| Market cap | $82.8B | $130.5B |
| Revenue growth, 5 years | 11.0% | 14.2% |
| Operating margin | 26.9% | 39.5% |
| Net margin | 27.9% | 34.7% |
| Return on equity | 14.0% | 23.5% |
| Debt to equity | 0.09 | 0.10 |
| P/E | 19.9x | 30.0x |
| Forward P/E | 13.1x | 24.4x |
| P/B | 2.6x | 6.4x |
| Dividend yield | 0.4% | — |