BIIB Valuation - Is Biogen Inc Over or Undervalued?

Comprehensive analysis of Biogen Inc valuation metrics including P/E, P/B, P/S, and EV/EBITDA ratios

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Current Stock Price

$191.82

Market Cap

$28.15B

Valuation Date

Feb 28, 2026

Valuation Verdict

=

Fairly Valued

Based on valuation multiples, BIIB appears reasonably priced relative to fundamentals. Metrics show balanced valuation.

Key Valuation Metrics

These four fundamental valuation ratios help determine if BIIB is trading at a fair price relative to its earnings, assets, revenue, and cash flow generation.

P/E Ratio (Price-to-Earnings)
Good
21.82x
Near market average
Investors pay $21.82 for every $1 of annual earnings
P/B Ratio (Price-to-Book)
Good
1.51x
Moderate premium
Stock trades at 1.51x its book value per share
P/S Ratio (Price-to-Sales)
Good
2.85x
Moderate
Market values each $1 of revenue at $2.85
EV/EBITDA
Good
11.66x
Fair valuation
Enterprise value is 11.66x EBITDA

How to Interpret These Metrics

P/E Ratio: Lower P/E often indicates better value, but compare against industry peers. High-growth companies typically have higher P/E ratios. Market average is 15-20x.
P/B Ratio: Values below 1.0 suggest the stock trades below its net asset value, which could indicate undervaluation or fundamental problems. Technology companies often trade at higher P/B ratios.
P/S Ratio: Useful for unprofitable companies or comparing revenue efficiency. Lower is generally better, but high-margin businesses can justify higher P/S ratios.
EV/EBITDA: Accounts for debt and excludes non-cash expenses, making it ideal for comparing companies with different capital structures. Values under 10x often indicate good value.

How BIIB Compares to Peers

What This Means for Investors

Balanced Valuation

Biogen Inc (BIIB) appears fairly valued based on current multiples. This balanced valuation suggests the stock is priced appropriately relative to its fundamentals. For investors, this means the stock may be suitable for those seeking exposure to Health Care without taking on significant valuation risk in either direction.

Bullish Considerations

  • Reasonable price relative to book value
  • Attractive price-to-sales multiple
  • Favorable EV/EBITDA valuation

Bearish Considerations

    Complete Your Analysis

    Valuation is just one piece of the puzzle. Get the complete picture of BIIB with our comprehensive analysis tools.

    Frequently Asked Questions

    What is BIIB's P/E ratio and what does it mean?

    BIIB has a P/E (Price-to-Earnings) ratio of 21.82. This means investors are paying $21.82 for every $1 of annual earnings. A lower P/E generally suggests better value, but it's important to compare against industry peers and growth prospects. The market average P/E is typically 15-20x.

    Is BIIB stock overvalued or undervalued?

    Based on our analysis of key valuation metrics (P/E, P/B, P/S, EV/EBITDA), BIIB appears fairly valued. Based on valuation multiples, BIIB appears reasonably priced relative to fundamentals. Metrics show balanced valuation. However, valuation is just one factor to consider alongside growth prospects, competitive position, and market conditions.

    What is a good P/E ratio for BIIB?

    There's no single "good" P/E ratio as it varies by industry and growth stage. For Biogen Inc, compare the current P/E of 21.82 against: (1) Industry peers, (2) Historical average P/E for BIIB, (3) Expected earnings growth rate. High-growth companies often justify higher P/E ratios, while mature companies typically trade at lower multiples.

    How do I use valuation ratios to make investment decisions?

    Valuation ratios are screening tools, not buy/sell signals. Use them to: (1) Compare BIIB against competitors, (2) Identify potential over/undervaluation, (3) Understand what you're paying for earnings, assets, or sales. Combine valuation analysis with fundamental research, growth prospects, and technical analysis for comprehensive decision-making.

    What is EV/EBITDA and why does it matter?

    EV/EBITDA (Enterprise Value to EBITDA) is 11.66 for BIIB. This ratio is useful because it accounts for debt and excludes non-cash expenses, making it better for comparing companies with different capital structures. Lower EV/EBITDA generally indicates better value. It's particularly useful for comparing companies in capital-intensive industries.

    Disclaimer: This valuation analysis is for informational and educational purposes only and should not be considered investment advice. Valuation metrics are just one factor in investment decisions. Always conduct comprehensive research and consult with a qualified financial advisor before making investment decisions. Past performance and current valuations do not guarantee future results.

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