Intrinsic value of Biogen Inc. - BIIB

Previous Close

$224.57

  Intrinsic Value

$364.47

stock screener

  Rating & Target

str. buy

+62%

Previous close

$224.57

 
Intrinsic value

$364.47

 
Up/down potential

+62%

 
Rating

str. buy

We calculate the intrinsic value of BIIB stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 44.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  6.60
  6.44
  6.30
  6.17
  6.05
  5.94
  5.85
  5.77
  5.69
  5.62
  5.56
  5.50
  5.45
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
  5.19
  5.18
  5.16
  5.14
  5.13
  5.11
  5.10
  5.09
  5.08
  5.08
Revenue, $m
  14,341
  15,264
  16,226
  17,226
  18,268
  19,354
  20,486
  21,668
  22,900
  24,187
  25,531
  26,936
  28,405
  29,940
  31,547
  33,228
  34,988
  36,831
  38,761
  40,783
  42,901
  45,122
  47,449
  49,888
  52,447
  55,129
  57,943
  60,894
  63,989
  67,237
Variable operating expenses, $m
  7,720
  8,194
  8,688
  9,201
  9,736
  10,293
  10,874
  11,481
  12,113
  12,774
  13,104
  13,825
  14,578
  15,366
  16,191
  17,054
  17,957
  18,903
  19,893
  20,931
  22,018
  23,158
  24,352
  25,604
  26,917
  28,294
  29,738
  31,253
  32,841
  34,508
Fixed operating expenses, $m
  319
  326
  333
  340
  348
  356
  363
  371
  380
  388
  396
  405
  414
  423
  432
  442
  452
  462
  472
  482
  493
  504
  515
  526
  538
  549
  561
  574
  586
  599
Total operating expenses, $m
  8,039
  8,520
  9,021
  9,541
  10,084
  10,649
  11,237
  11,852
  12,493
  13,162
  13,500
  14,230
  14,992
  15,789
  16,623
  17,496
  18,409
  19,365
  20,365
  21,413
  22,511
  23,662
  24,867
  26,130
  27,455
  28,843
  30,299
  31,827
  33,427
  35,107
Operating income, $m
  6,302
  6,744
  7,205
  7,685
  8,184
  8,705
  9,249
  9,816
  10,407
  11,026
  12,031
  12,707
  13,412
  14,151
  14,924
  15,733
  16,579
  17,467
  18,396
  19,370
  20,390
  21,460
  22,582
  23,758
  24,992
  26,286
  27,643
  29,067
  30,561
  32,129
EBITDA, $m
  7,354
  7,841
  8,348
  8,876
  9,426
  9,999
  10,597
  11,221
  11,872
  12,552
  13,263
  14,006
  14,783
  15,595
  16,445
  17,335
  18,267
  19,243
  20,266
  21,337
  22,460
  23,637
  24,871
  26,164
  27,521
  28,945
  30,438
  32,004
  33,648
  35,373
Interest expense (income), $m
  281
  321
  364
  410
  457
  506
  557
  611
  666
  725
  785
  848
  915
  984
  1,056
  1,131
  1,210
  1,293
  1,380
  1,470
  1,565
  1,665
  1,769
  1,878
  1,992
  2,112
  2,238
  2,370
  2,508
  2,653
  2,806
Earnings before tax, $m
  5,981
  6,380
  6,795
  7,228
  7,678
  8,148
  8,638
  9,149
  9,683
  10,240
  11,183
  11,792
  12,429
  13,095
  13,792
  14,522
  15,286
  16,087
  16,926
  17,805
  18,726
  19,691
  20,704
  21,766
  22,879
  24,048
  25,273
  26,559
  27,908
  29,324
Tax expense, $m
  1,615
  1,723
  1,835
  1,951
  2,073
  2,200
  2,332
  2,470
  2,614
  2,765
  3,019
  3,184
  3,356
  3,536
  3,724
  3,921
  4,127
  4,343
  4,570
  4,807
  5,056
  5,317
  5,590
  5,877
  6,177
  6,493
  6,824
  7,171
  7,535
  7,917
Net income, $m
  4,366
  4,657
  4,960
  5,276
  5,605
  5,948
  6,306
  6,679
  7,068
  7,475
  8,164
  8,608
  9,073
  9,559
  10,068
  10,601
  11,159
  11,743
  12,356
  12,997
  13,670
  14,375
  15,114
  15,889
  16,702
  17,555
  18,449
  19,388
  20,373
  21,406

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  26,706
  28,425
  30,215
  32,078
  34,019
  36,041
  38,150
  40,349
  42,645
  45,041
  47,545
  50,160
  52,895
  55,755
  58,747
  61,878
  65,155
  68,587
  72,181
  75,946
  79,891
  84,025
  88,359
  92,902
  97,666
  102,661
  107,900
  113,396
  119,161
  125,208
Adjusted assets (=assets-cash), $m
  26,706
  28,425
  30,215
  32,078
  34,019
  36,041
  38,150
  40,349
  42,645
  45,041
  47,545
  50,160
  52,895
  55,755
  58,747
  61,878
  65,155
  68,587
  72,181
  75,946
  79,891
  84,025
  88,359
  92,902
  97,666
  102,661
  107,900
  113,396
  119,161
  125,208
Revenue / Adjusted assets
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
Average production assets, $m
  8,232
  8,762
  9,313
  9,888
  10,486
  11,109
  11,759
  12,437
  13,145
  13,883
  14,655
  15,461
  16,304
  17,186
  18,108
  19,073
  20,083
  21,141
  22,249
  23,409
  24,625
  25,900
  27,236
  28,636
  30,104
  31,644
  33,259
  34,953
  36,730
  38,594
Working capital, $m
  860
  916
  974
  1,034
  1,096
  1,161
  1,229
  1,300
  1,374
  1,451
  1,532
  1,616
  1,704
  1,796
  1,893
  1,994
  2,099
  2,210
  2,326
  2,447
  2,574
  2,707
  2,847
  2,993
  3,147
  3,308
  3,477
  3,654
  3,839
  4,034
Total debt, $m
  6,746
  7,587
  8,462
  9,373
  10,322
  11,311
  12,342
  13,418
  14,540
  15,712
  16,936
  18,216
  19,553
  20,951
  22,414
  23,945
  25,548
  27,226
  28,984
  30,825
  32,754
  34,776
  36,895
  39,116
  41,446
  43,889
  46,451
  49,138
  51,957
  54,914
Total liabilities, $m
  13,059
  13,900
  14,775
  15,686
  16,635
  17,624
  18,655
  19,731
  20,853
  22,025
  23,249
  24,528
  25,866
  27,264
  28,727
  30,258
  31,861
  33,539
  35,296
  37,137
  39,067
  41,088
  43,207
  45,429
  47,759
  50,201
  52,763
  55,451
  58,270
  61,227
Total equity, $m
  13,647
  14,525
  15,440
  16,392
  17,384
  18,417
  19,495
  20,618
  21,791
  23,016
  24,295
  25,632
  27,029
  28,491
  30,020
  31,620
  33,294
  35,048
  36,884
  38,808
  40,824
  42,937
  45,151
  47,473
  49,907
  52,460
  55,137
  57,945
  60,891
  63,982
Total liabilities and equity, $m
  26,706
  28,425
  30,215
  32,078
  34,019
  36,041
  38,150
  40,349
  42,644
  45,041
  47,544
  50,160
  52,895
  55,755
  58,747
  61,878
  65,155
  68,587
  72,180
  75,945
  79,891
  84,025
  88,358
  92,902
  97,666
  102,661
  107,900
  113,396
  119,161
  125,209
Debt-to-equity ratio
  0.490
  0.520
  0.550
  0.570
  0.590
  0.610
  0.630
  0.650
  0.670
  0.680
  0.700
  0.710
  0.720
  0.740
  0.750
  0.760
  0.770
  0.780
  0.790
  0.790
  0.800
  0.810
  0.820
  0.820
  0.830
  0.840
  0.840
  0.850
  0.850
  0.860
Adjusted equity ratio
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511
  0.511

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  4,366
  4,657
  4,960
  5,276
  5,605
  5,948
  6,306
  6,679
  7,068
  7,475
  8,164
  8,608
  9,073
  9,559
  10,068
  10,601
  11,159
  11,743
  12,356
  12,997
  13,670
  14,375
  15,114
  15,889
  16,702
  17,555
  18,449
  19,388
  20,373
  21,406
Depreciation, amort., depletion, $m
  1,052
  1,096
  1,143
  1,191
  1,241
  1,294
  1,348
  1,405
  1,465
  1,527
  1,232
  1,299
  1,370
  1,444
  1,522
  1,603
  1,688
  1,777
  1,870
  1,967
  2,069
  2,176
  2,289
  2,406
  2,530
  2,659
  2,795
  2,937
  3,087
  3,243
Funds from operations, $m
  5,418
  5,754
  6,103
  6,467
  6,846
  7,242
  7,654
  8,084
  8,533
  9,002
  9,395
  9,907
  10,443
  11,004
  11,590
  12,204
  12,847
  13,520
  14,225
  14,964
  15,739
  16,551
  17,403
  18,295
  19,232
  20,214
  21,244
  22,325
  23,459
  24,650
Change in working capital, $m
  53
  55
  58
  60
  63
  65
  68
  71
  74
  77
  81
  84
  88
  92
  96
  101
  106
  111
  116
  121
  127
  133
  140
  146
  153
  161
  169
  177
  186
  195
Cash from operations, $m
  5,365
  5,698
  6,046
  6,407
  6,784
  7,176
  7,586
  8,013
  8,459
  8,925
  9,314
  9,823
  10,355
  10,911
  11,494
  12,103
  12,741
  13,409
  14,110
  14,843
  15,612
  16,418
  17,263
  18,149
  19,078
  20,053
  21,075
  22,148
  23,274
  24,455
Maintenance CAPEX, $m
  -649
  -692
  -736
  -783
  -831
  -881
  -934
  -988
  -1,045
  -1,105
  -1,167
  -1,232
  -1,299
  -1,370
  -1,444
  -1,522
  -1,603
  -1,688
  -1,777
  -1,870
  -1,967
  -2,069
  -2,176
  -2,289
  -2,406
  -2,530
  -2,659
  -2,795
  -2,937
  -3,087
New CAPEX, $m
  -505
  -530
  -552
  -574
  -598
  -623
  -650
  -678
  -708
  -739
  -772
  -806
  -843
  -882
  -922
  -965
  -1,010
  -1,058
  -1,108
  -1,161
  -1,216
  -1,274
  -1,336
  -1,400
  -1,468
  -1,540
  -1,615
  -1,694
  -1,777
  -1,864
Cash from investing activities, $m
  -1,154
  -1,222
  -1,288
  -1,357
  -1,429
  -1,504
  -1,584
  -1,666
  -1,753
  -1,844
  -1,939
  -2,038
  -2,142
  -2,252
  -2,366
  -2,487
  -2,613
  -2,746
  -2,885
  -3,031
  -3,183
  -3,343
  -3,512
  -3,689
  -3,874
  -4,070
  -4,274
  -4,489
  -4,714
  -4,951
Free cash flow, $m
  4,210
  4,476
  4,758
  5,050
  5,355
  5,672
  6,003
  6,347
  6,707
  7,082
  7,376
  7,785
  8,213
  8,660
  9,127
  9,616
  10,128
  10,664
  11,225
  11,813
  12,429
  13,074
  13,751
  14,460
  15,204
  15,983
  16,801
  17,659
  18,559
  19,504
Issuance/(repayment) of debt, $m
  810
  841
  875
  911
  949
  989
  1,031
  1,076
  1,122
  1,172
  1,224
  1,279
  1,337
  1,398
  1,463
  1,531
  1,603
  1,678
  1,757
  1,841
  1,929
  2,022
  2,119
  2,222
  2,329
  2,443
  2,562
  2,687
  2,819
  2,957
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  810
  841
  875
  911
  949
  989
  1,031
  1,076
  1,122
  1,172
  1,224
  1,279
  1,337
  1,398
  1,463
  1,531
  1,603
  1,678
  1,757
  1,841
  1,929
  2,022
  2,119
  2,222
  2,329
  2,443
  2,562
  2,687
  2,819
  2,957
Total cash flow (excl. dividends), $m
  5,020
  5,317
  5,633
  5,961
  6,304
  6,661
  7,034
  7,423
  7,829
  8,254
  8,600
  9,064
  9,550
  10,058
  10,590
  11,147
  11,731
  12,342
  12,983
  13,654
  14,358
  15,096
  15,870
  16,682
  17,533
  18,426
  19,363
  20,347
  21,378
  22,461
Retained Cash Flow (-), $m
  -850
  -879
  -915
  -952
  -992
  -1,033
  -1,077
  -1,124
  -1,173
  -1,225
  -1,279
  -1,337
  -1,397
  -1,461
  -1,529
  -1,600
  -1,675
  -1,754
  -1,837
  -1,924
  -2,016
  -2,113
  -2,214
  -2,322
  -2,434
  -2,553
  -2,677
  -2,808
  -2,946
  -3,090
Prev. year cash balance distribution, $m
  243
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  4,413
  4,439
  4,718
  5,009
  5,312
  5,627
  5,956
  6,299
  6,656
  7,029
  7,321
  7,728
  8,153
  8,597
  9,061
  9,547
  10,056
  10,589
  11,146
  11,730
  12,342
  12,983
  13,655
  14,360
  15,099
  15,873
  16,686
  17,538
  18,433
  19,371
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  4,231
  4,063
  4,106
  4,125
  4,117
  4,084
  4,024
  3,937
  3,824
  3,685
  3,477
  3,298
  3,100
  2,886
  2,660
  2,426
  2,188
  1,950
  1,716
  1,491
  1,277
  1,077
  895
  731
  587
  463
  358
  271
  201
  146
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Biogen Inc. is a biopharmaceutical company. The Company focuses on discovering, developing, manufacturing and delivering therapies to people living with serious neurological, rare and autoimmune diseases. The Company markets products, including TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, ZINBRYTA and FAMPYRA for multiple sclerosis (MS), FUMADERM for the treatment of severe plaque psoriasis and SPINRAZA for the treatment of spinal muscular atrophy (SMA). It also has a collaboration agreement with Genentech, Inc. (Genentech), a member of the Roche Group, with respect to RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia (CLL) and other conditions, GAZYVA indicated for the treatment of CLL and follicular lymphoma, and other anti-CD20 therapies. The Company's product candidate includes OCREVUS; Biosimilar adalimumab; Aducanumab; E2609; BIIB074; BAN2401; Opicinumab; CIRARA; BIIB061; BIIB054; BIIB067, and BIIB068.

FINANCIAL RATIOS  of  Biogen Inc. (BIIB)

Valuation Ratios
P/E Ratio 13.1
Price to Sales 4.2
Price to Book 4
Price to Tangible Book
Price to Cash Flow 10.7
Price to Free Cash Flow 12.8
Growth Rates
Sales Growth Rate 6.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 13.2%
Cap. Spend. - 3 Yr. Gr. Rate -27%
Financial Strength
Quick Ratio 979
Current Ratio 0.1
LT Debt to Equity 53.6%
Total Debt to Equity 53.7%
Interest Coverage 19
Management Effectiveness
Return On Assets 18.5%
Ret/ On Assets - 3 Yr. Avg. 20.8%
Return On Total Capital 21.4%
Ret/ On T. Cap. - 3 Yr. Avg. 25.3%
Return On Equity 34.4%
Return On Equity - 3 Yr. Avg. 33.3%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 87.1%
Gross Margin - 3 Yr. Avg. 87.8%
EBITDA Margin 51.5%
EBITDA Margin - 3 Yr. Avg. 50%
Operating Margin 45%
Oper. Margin - 3 Yr. Avg. 43.8%
Pre-Tax Margin 43.1%
Pre-Tax Margin - 3 Yr. Avg. 42.7%
Net Profit Margin 32.3%
Net Profit Margin - 3 Yr. Avg. 31.8%
Effective Tax Rate 25.1%
Eff/ Tax Rate - 3 Yr. Avg. 24.8%
Payout Ratio 0%

BIIB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BIIB stock intrinsic value calculation we used $13453 million for the last fiscal year's total revenue generated by Biogen Inc.. The default revenue input number comes from 0001 income statement of Biogen Inc.. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our BIIB stock valuation model: a) initial revenue growth rate of 6.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for BIIB is calculated based on our internal credit rating of Biogen Inc., is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Biogen Inc..
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of BIIB stock the variable cost ratio is equal to 54%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $312 million in the base year in the intrinsic value calculation for BIIB stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Biogen Inc..

Corporate tax rate of 27% is the nominal tax rate for Biogen Inc.. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the BIIB stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for BIIB are equal to 57.4%.

Life of production assets of 11.9 years is the average useful life of capital assets used in Biogen Inc. operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for BIIB is equal to 6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $13039.6 million for Biogen Inc. - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 196.714 million for Biogen Inc. is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Biogen Inc. at the current share price and the inputted number of shares is $44.2 billion.

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