Is Regeneron Pharmaceuticals, Inc. overvalued or undervalued?

As of 29 April 2025, the valuation grade for Regeneron Pharmaceuticals, Inc. has moved from attractive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently assessed as undervalued. Key ratios include a P/E ratio of 16, an EV to EBITDA of 13.64, and a ROCE of 17.20%.
In comparison to its peers, Regeneron's P/E ratio is notably lower than Eli Lilly & Co., which stands at 48.73, and Johnson & Johnson, which has a P/E of 22.46, suggesting that Regeneron offers a more favorable valuation relative to its industry competitors. Despite recent stock performance lagging behind the S&P 500, with a one-year return of -51.39% compared to the index's 10.26%, the company's strong financial ratios and improved valuation grade support the conclusion that it is currently undervalued.