Price to Earnings (P/E)
since 2005
Calculation
Biogen Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income attributable to Biogen Inc.1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 3, 2022 | 20.79 | = | 220.17 | ÷ | 10.59 | 10.59 | = | 1,556,100 | ÷ | 146,962,793 | |
| Feb 3, 2021 | 10.02 | = | 263.25 | ÷ | 26.26 | 26.26 | = | 4,000,600 | ÷ | 152,335,731 | |
| Feb 6, 2020 | 9.97 | = | 337.24 | ÷ | 33.83 | 33.83 | = | 5,888,500 | ÷ | 174,064,011 | |
| Feb 6, 2019 | 14.79 | = | 333.24 | ÷ | 22.52 | 22.52 | = | 4,430,700 | ÷ | 196,708,784 | |
| Feb 1, 2018 | 28.83 | = | 346.00 | ÷ | 12.00 | 12.00 | = | 2,539,100 | ÷ | 211,562,686 | |
| Feb 2, 2017 | 15.41 | = | 264.23 | ÷ | 17.15 | 17.15 | = | 3,702,800 | ÷ | 215,951,945 | |
| Feb 3, 2016 | 16.67 | = | 270.43 | ÷ | 16.22 | 16.22 | = | 3,547,000 | ÷ | 218,672,717 | |
| Feb 4, 2015 | 31.27 | = | 391.12 | ÷ | 12.51 | 12.51 | = | 2,934,784 | ÷ | 234,614,474 | |
| Feb 6, 2014 | 38.21 | = | 301.01 | ÷ | 7.88 | 7.88 | = | 1,862,341 | ÷ | 236,393,930 | |
| Feb 5, 2013 | 26.95 | = | 157.36 | ÷ | 5.84 | 5.84 | = | 1,380,033 | ÷ | 236,312,191 | |
| Feb 3, 2012 | 23.57 | = | 121.88 | ÷ | 5.17 | 5.17 | = | 1,234,428 | ÷ | 238,725,065 | |
| Feb 4, 2011 | 15.80 | = | 65.93 | ÷ | 4.17 | 4.17 | = | 1,005,273 | ÷ | 240,911,883 | |
| Feb 9, 2010 | 15.03 | = | 54.09 | ÷ | 3.60 | 3.60 | = | 970,132 | ÷ | 269,601,262 | |
| Feb 6, 2009 | 19.92 | = | 52.48 | ÷ | 2.63 | 2.63 | = | 783,167 | ÷ | 297,252,825 | |
| Feb 14, 2008 | 29.33 | = | 62.87 | ÷ | 2.14 | 2.14 | = | 638,172 | ÷ | 297,750,601 | |
| Feb 21, 2007 | 74.03 | = | 47.02 | ÷ | 0.64 | 0.64 | = | 217,511 | ÷ | 342,436,836 | |
| Mar 3, 2006 | 97.42 | = | 45.50 | ÷ | 0.47 | 0.47 | = | 160,711 | ÷ | 344,098,779 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Biogen Inc. Annual Report.
The financial trajectory from 2006 to 2022 reflects a transition from high-growth valuation expectations to a period of earnings-driven stability, followed by recent significant volatility in profitability.
- Price-to-Earnings (P/E) Ratio Trends
- A period of extreme valuation contraction occurred between 2006 and 2010, where the P/E ratio declined from 97.42 to 15.03. This shift indicates a transition from speculative pricing to a valuation more closely aligned with realized earnings. A subsequent expansion was observed between 2012 and 2014, peaking at 38.21, suggesting a period where market optimism outpaced the growth of earnings per share.
- Earnings Per Share (EPS) Evolution
- Earnings exhibited a consistent and substantial upward trend for over a decade, rising from $0.47 in 2006 to a peak of $33.83 in 2020. This steady growth suggests a prolonged period of increasing operational profitability. However, a sharp reversal is noted in 2022, with EPS falling to $10.59, marking a significant contraction in annual earnings.
- Share Price Analysis
- The share price experienced significant growth from 2006 through 2015, reaching a maximum of $391.12. Following this peak, the price entered a period of volatility and general decline, closing at $220.17 in 2022. The divergence between the share price and EPS growth in the later years contributed to the compression of the P/E ratio, which reached a low of 9.97 in 2020.
- Valuation Divergence in 2022
- In the final recorded period, the P/E ratio rose to 20.79. This increase was not a result of price appreciation, but was instead driven by a steep decline in EPS, which fell from $26.26 to $10.59. Because the earnings dropped more precipitously than the share price, the resulting ratio increased despite the overall decline in both metrics.
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Comparison to Competitors
Biogen Inc., P/E, long-term trends, comparison to competitors
| Biogen Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 3, 2022 | 20.79 | 22.07 | 21.05 | 20.92 | 29.94 | 40.66 | 12.36 | 20.93 | 14.78 | 11.76 | 8.37 | 27.35 | 26.55 |
| Feb 3, 2021 | 10.02 | 40.17 | 18.82 | — | 44.49 | 31.95 | 641.48 | 28.92 | 26.72 | 19.62 | 15.09 | 27.89 | 20.18 |
| Feb 6, 2020 | 9.97 | 17.82 | 17.07 | 41.99 | 38.34 | 16.19 | 16.45 | 25.99 | 20.60 | 11.63 | 19.86 | 33.36 | 52.90 |
| Feb 6, 2019 | 14.79 | 20.60 | 14.01 | 16.81 | 29.77 | 39.13 | 15.26 | 23.74 | 33.46 | 21.58 | 18.17 | 35.19 | 22.59 |
| Feb 1, 2018 | 28.83 | 35.47 | 64.06 | 103.55 | 27.25 | — | 22.75 | 268.10 | 61.63 | 9.99 | 28.99 | 37.66 | 155.08 |
| Feb 2, 2017 | 15.41 | 16.54 | 16.03 | 20.56 | 23.02 | 32.39 | 6.83 | 20.08 | 46.14 | 28.10 | 42.64 | 30.45 | — |
| Feb 3, 2016 | 16.67 | 17.01 | 15.95 | 64.22 | 17.85 | 33.35 | 6.75 | 18.80 | 31.64 | 26.37 | 60.50 | 26.19 | — |
| Feb 4, 2015 | 31.27 | 55.08 | 22.96 | 49.80 | 23.69 | 33.06 | 12.85 | 17.15 | 13.94 | 23.03 | 118.44 | 27.26 | — |
| Feb 6, 2014 | 38.21 | 19.64 | 18.69 | 35.01 | 19.74 | 13.88 | 42.00 | 18.72 | 37.83 | 9.32 | 77.00 | 38.43 | — |
| Feb 5, 2013 | 26.95 | 11.51 | 15.68 | 30.56 | 17.73 | 14.99 | 25.20 | 19.64 | 20.94 | 13.51 | 21.42 | 22.54 | — |
| Feb 3, 2012 | 23.57 | — | 14.61 | 15.07 | 16.92 | 10.42 | 12.20 | 18.48 | 18.63 | 15.99 | — | 15.58 | 267.42 |
| Feb 4, 2011 | 15.80 | — | 10.53 | 13.99 | 18.29 | 7.86 | 10.68 | 12.23 | 116.63 | 18.63 | — | 20.87 | — |
| Feb 9, 2010 | 15.03 | — | 12.10 | 4.03 | 20.93 | 9.18 | 16.29 | 14.22 | 9.00 | 16.41 | — | 23.49 | — |
| Feb 6, 2009 | 19.92 | — | 12.06 | 7.68 | 12.56 | — | 20.29 | 11.67 | 6.53 | 10.25 | — | 15.25 | — |
| Feb 14, 2008 | 29.33 | — | 15.64 | 20.60 | 17.35 | 19.26 | 25.19 | 17.07 | 29.88 | 18.51 | — | 30.76 | — |
| Feb 21, 2007 | 74.03 | — | 25.43 | 34.64 | 19.65 | 22.40 | — | 17.02 | 21.57 | 9.18 | — | 113.28 | — |
| Mar 3, 2006 | 97.42 | — | 23.70 | 14.96 | 21.38 | 31.90 | 34.15 | 16.95 | 16.62 | 23.92 | — | 25.36 | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Biogen Inc., P/E, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Biogen Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Feb 3, 2022 | 20.79 | 19.27 |
| Feb 3, 2021 | 10.02 | 34.89 |
| Feb 6, 2020 | 9.97 | 21.03 |
| Feb 6, 2019 | 14.79 | 22.89 |
| Feb 1, 2018 | 28.83 | 35.21 |
| Feb 2, 2017 | 15.41 | 20.62 |
| Feb 3, 2016 | 16.67 | 19.37 |
| Feb 4, 2015 | 31.27 | 21.40 |
| Feb 6, 2014 | 38.21 | 19.54 |
| Feb 5, 2013 | 26.95 | 17.56 |
| Feb 3, 2012 | 23.57 | 16.42 |
| Feb 4, 2011 | 15.80 | 16.11 |
| Feb 9, 2010 | 15.03 | 11.66 |
| Feb 6, 2009 | 19.92 | 12.21 |
| Feb 14, 2008 | 29.33 | 20.04 |
| Feb 21, 2007 | 74.03 | 17.46 |
| Mar 3, 2006 | 97.42 | 20.94 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Biogen Inc., P/E, long-term trends, comparison to industry (health care)
| Biogen Inc. | Health Care | |
|---|---|---|
| Feb 3, 2022 | 20.79 | 21.55 |
| Feb 3, 2021 | 10.02 | 32.22 |
| Feb 6, 2020 | 9.97 | 22.09 |
| Feb 6, 2019 | 14.79 | 24.32 |
| Feb 1, 2018 | 28.83 | 33.04 |
| Feb 2, 2017 | 15.41 | 21.90 |
| Feb 3, 2016 | 16.67 | 19.53 |
| Feb 4, 2015 | 31.27 | 21.38 |
| Feb 6, 2014 | 38.21 | 18.67 |
| Feb 5, 2013 | 26.95 | 15.77 |
| Feb 3, 2012 | 23.57 | 15.79 |
| Feb 4, 2011 | 15.80 | 15.12 |
| Feb 9, 2010 | 15.03 | 11.71 |
| Feb 6, 2009 | 19.92 | 13.07 |
| Feb 14, 2008 | 29.33 | 19.29 |
| Feb 21, 2007 | 74.03 | 18.61 |
| Mar 3, 2006 | 97.42 | 21.71 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).