Biogen Inc. (BIIB) Simple Excess Return Model - Discounting Cash Flows
BIIB
Biogen Inc.
BIIB (NASDAQ)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Simple Excess Return Model

Used to estimate the value of companies that have reached maturity and earn stable excess returns with little to no high growth chance. Excess Return models are better suited to calculate the intrinsic value of a financial company than an enterprise valuation model (such as the Discounted Free Cash Flow Model).

See our GitHub Documentation

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Cost of Equity = Risk Free Rate + Beta * Market Premium

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

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↳ Beta

Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.

↳ Risk Free Rate

Risk-Free Rate

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.

↳ Market Premium

Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.

Return On Equity

Return on Equity

Return On Equity (ROE) is used to estimate the Earnings Per Share (EPS) expressed as a percentage of Book Value.

Growth In Perpetuity

Growth in Perpetuity

The rate at which the company's free cash flow is assumed to grow in perpetuity. By default, this is equal to the yield of the U.S. 10 Year Treasury Bond.

Historical Years

Historical Years

The number of historical years used to calculate averages for historical data.

Results

Estimated Value 3.67 Thou. USD
Book value of equity invested 116.2 USD
Next year's estimated book value 119.7 USD
Present value of future excess returns 3.55 Thou. USD
Excess Return per share 22.91 USD
Cost of Equity (the discount rate) 5%
Average historical Return on Equity 24.96%
Average historical Payout Ratio
Payout Ratio used 82.57%
Risk Free Rate of the 10 Year U.S. Treasury Note 4.35%

Historical and Forecasted Data

Monetary values are in USD

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Beginning Book Value 102.3 114.7 114.7 119.7 124.9 130.4 136.0
Ending Book Value 114.7 116.2 119.7 124.9 130.4 136.0 141.9
EPS 11.2 10.16 28.64 29.88 31.18 32.54 33.95
Return on Equity 11.03% 8.85% 24.96% 24.96% 24.96% 24.96% 24.96%
Dividend per Share
23.65 24.67 25.75 26.87 28.04
Retained Earnings
4.99 5.21 5.43 5.67 5.92
Equity Cost per Share 5.11 5.73 5.73 5.98 6.24 6.51 6.79
Cost of Equity 5% 5% 5% 5% 5% 5% 5%
Excess Return 6.09 4.43 22.91 23.9 24.94 26.03 27.16

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 2,999 1,479 1,632 1,161 3,047 1,556 4,001 5,888 4,431 2,539 3,703 3,547
Total Equity 13,091 16,979 16,716 14,799 13,398 10,896 10,700 13,343 13,040 12,613 12,140 9,373
Return on Equity 24.96% 8.85% 11.03% 8.67% 27.96% 14.54% 29.98% 45.16% 35.13% 20.91% 39.51% 32.8%
Dividends Paid to Common Shareholders
Payout Ratio
Shares Outstanding 176.9 146.1 145.7 144.7 145.3 149.1 160.9 187.1 204.9 212.6 218.4 230.7
EPS 16.64 10.16 11.2 8.02 20.97 10.44 24.86 31.47 21.62 11.94 16.96 15.38
Dividend per Share
Book Value 77.77 116.2 114.7 102.3 92.21 73.08 66.5 71.32 63.64 59.33 55.59 40.63
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Discounting Cash Flows

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