Using a Revenue DCF model with operating margin convergence from -13.3% to a target of 13.3% over 5 years, discounted at a WACC of 8.5%, Legend Biotech Corporation (LEGN) has an intrinsic value of $1.18 per share (range: $0.38 – $21.85).
Using the industry peer median EV/Revenue multiple (trailing + forward), Legend Biotech Corporation (LEGN) has a fair value of $51.12 based on 5 comparable companies in the Biotechnology industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| Legend Biotech CorporationLEGN | 4,715 | 4.1x | 3.0x |
| Scholar Rock Holding Corporation | 5,607 | 167.9x | — |
| Tarsus Pharmaceuticals, Inc. | 2,987 | 6.4x | 4.2x |
| IDEAYA Biosciences, Inc. | 2,840 | 12.6x | 75.8x |
| Zai Lab Limited | 2,269 | 3.9x | 3.6x |
| Adaptive Biotechnologies Corporation | 2,168 | 8.6x | 8.4x |
| Industry Median | 8.6x | 6.3x | |
| (*) Revenue | 1,032 | 1,431 | |
| = Enterprise Value | 8,858 | 9,011 | |
| (-) Net Debt | -488 | -488 | |
| Equity Value | 9,346 | 9,499 | |
| (/) Outstanding shares | 184 | 184 | |
| Fair Price | $51 | $52 | |
Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.