Biogen Stock

Biogen P/E

The (Price Earnings Ratio) is an important metric for stock valuation. It is calculated by dividing the current share price by the earnings per share. The P/E indicates how many years it would take to recoup the current share price through the expected earnings per share. A low P/E may indicate that a stock is undervalued, while a high P/E may suggest an overvalued stock. However, the P/E alone should not be considered the sole basis for an investment decision, as other factors must also be taken into account. of Biogen (BIIB) as of Jul 25, 2026 is 20.82. In the previous year, (Price Earnings Ratio) is an important metric for stock valuation. It is calculated by dividing the current share price by the earnings per share. The P/E indicates how many years it would take to recoup the current share price through the expected earnings per share. A low P/E may indicate that a stock is undervalued, while a high P/E may suggest an overvalued stock. However, the P/E alone should not be considered the sole basis for an investment decision, as other factors must also be taken into account. was 16.49 — a change of 26.24% (higher).

P/E

20.82

YoY

26.24%

Last updated:

As of Jul 25, 2026, Biogen's P/E ratio was 20.82, a 26.24% change from the 16.49 P/E ratio recorded in the previous year.

The Biogen P/E history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

P/E
Date
P/E
Jan 1, 2019
9.42 base
Jan 1, 2020
9.85 base
Jan 1, 2021
23.13 base
Jan 1, 2022
13.27 base
Jan 1, 2023
32.45 base
Jan 1, 2024
13.67 base
Jan 1, 2025
20.02 base
Jan 1, 2026 (e)
12.48 base
YEARP/E
2026 est 12.48
2025 20.02
2024 13.67
2023 32.45
2022 13.27
2021 23.13
2020 9.85
2019 9.42
2018 13.92
2017 26.73
2016 15.45
2015 18.38
2014 25.25
2013 32.92
2012 23.45
2011 20.13
2010 15.70
2009 14.71
2008 16.55
2007 26.34
2006 72.04
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Biogen Valuation

Details

Historical Valuation Multiples

Price-to-Earnings Ratio (P/E)

The P/E ratio divides Biogen's share price by its earnings per share. It tells you how many years of current earnings you are "paying for" when you buy the stock. A P/E of 20 means you pay $20 for every $1 of annual earnings. The S&P 500 historically trades at an average P/E of roughly 15–17. A P/E significantly above that may signal high growth expectations; one below may indicate undervaluation — or declining business quality.

Price-to-Sales Ratio (P/S)

The P/S ratio divides market capitalization by total revenue. Unlike the P/E ratio, it works even for companies that are not yet profitable, making it essential for evaluating high-growth firms. A P/S below 1.0 may indicate undervaluation, while ratios above 10 are typically reserved for fast-growing tech or SaaS companies with high expected future margins.

Price-to-EBIT Ratio

This ratio relates Biogen's market price to its operating earnings, excluding the effects of debt structure and tax jurisdiction. It is particularly useful for comparing companies across different countries or with different levels of leverage, because it focuses purely on operational profitability. Lower values suggest cheaper operational earnings.

How to Use This Chart

This chart plots Biogen's valuation multiples over time. Compare the current P/E, P/S, and P/EBIT to their own historical averages — if the current ratio is well below the multi-year average, the stock may be relatively cheap compared to its own track record. Combine this with industry comparisons: a P/E that looks high in absolute terms may be justified if Biogen grows earnings faster than its peers.

Biogen Stock analysis

What does Biogen do? Biogen Inc. is an American biotechnology company specializing in the development, manufacturing, and marketing of therapeutics for neurodegenerative diseases, autoimmune diseases, and hemophilia. The company was founded in 1978 and is a Fortune 500 company headquartered in Cambridge, Massachusetts. It employs over 7,000 employees worldwide. The origins of Biogen can be traced back to its founding by Charles Weissmann, a Swiss biology professor, and American entrepreneurs Walter Gilbert and Phillip Sharp. The company initially focused on the development of interferon, a protein that protects the body against viruses. However, in the late 1980s, Biogen shifted its research and development efforts towards neurodegenerative diseases. Biogen's business model is based on the discovery and development of new and unique treatments for serious diseases. Through research, the discovery of new compounds, as well as acquisitions and partnerships with other companies, Biogen continually expands its product pipeline. The company also has a strong presence in the global market, selling its products in over 90 countries worldwide. Biogen has sought to expand into multiple areas of the biopharmaceutical industry. The company is divided into three main business areas: neurology, immunology, and hemophilia. In the neurology field, Biogen is a leading provider of drugs for the treatment of severe diseases such as multiple sclerosis, spinal muscular atrophy, and Alzheimer's. The company has developed several innovative therapeutics that can either slow down or even halt the progression of these diseases. One example is the drug Aduhelm®, which recently gained approval from the US Food and Drug Administration (FDA) for the treatment of Alzheimer's and garnered worldwide attention. In the immunology field, Biogen offers medications for the treatment of autoimmune diseases such as rheumatoid arthritis and psoriasis. Biogen is also a major provider of biosimilars, which are replicas of biopharmaceutical drugs developed and manufactured by other companies. Biosimilars can help reduce the cost of patient treatment, particularly in countries with limited healthcare resources. In the hemophilia field, Biogen's offerings include a range of products and services specifically developed for patients with hemophilia. These include clotting factor preparations for the treatment of bleeding, novel clotting factors, and specialized clotting tests. Biogen also invests significantly in the research of new technologies and platforms. The company has formed partnerships with other leading biotech companies such as Ionis Pharmaceuticals and Sangamo Therapeutics to develop innovative technologies like antisense oligonucleotides, genome editing, and gene silencing. Biogen is also a founding member of BioNTech, a German biotechnology company known for its development of mRNA-based vaccines for cancer and infectious diseases. Overall, Biogen has an impressive track record in the development of innovative therapeutics for complex diseases. The company has a strong presence in the global market and aims to expand its product pipeline through research and partnerships. With its high commitment to innovation, Biogen is well-positioned to play a significant role in the biopharmaceutical industry in the future. Biogen is one of the most popular companies on Eulerpool.

P/E Details

Deciphering Biogen's P/E Ratio

The Price to Earnings (P/E) Ratio of Biogen is a vital metric that investors and analysts use to determine the company’s market value relative to its earnings. It is calculated by dividing the current stock price by the earnings per share (EPS). A higher P/E ratio could suggest that investors are expecting higher future growth, while a lower ratio may indicate a potentially undervalued company or lower growth expectations.

Year-to-Year Comparison

Assessing Biogen's P/E ratio on a yearly basis provides insights into the valuation trends and investor sentiment. An increasing P/E ratio over the years signifies growing investor confidence and expectations for future earnings growth, while a decreasing ratio may reflect concerns over the company's profitability or growth prospects.

Impact on Investments

The P/E ratio of Biogen is a key consideration for investors aiming to balance risk and reward. A comprehensive analysis of this ratio, in conjunction with other financial indicators, aids investors in making informed decisions regarding buying, holding, or selling the company’s stocks.

Interpreting P/E Ratio Fluctuations

Fluctuations in Biogen’s P/E ratio can be attributed to various factors including changes in earnings, stock price movements, and shifts in investor expectations. Understanding the underlying reasons for these fluctuations is essential for predicting future stock performance and assessing the company's intrinsic value.

Frequently Asked Questions about Biogen stock

(Price Earnings Ratio) is an important metric for stock valuation. It is calculated by dividing the current share price by the earnings per share. The P/E indicates how many years it would take to recoup the current share price through the expected earnings per share. A low P/E may indicate that a stock is undervalued, while a high P/E may suggest an overvalued stock. However, the P/E alone should not be considered the sole basis for an investment decision, as other factors must also be taken into account. of Biogen is 20.82 in 2026.

The P/E ratio in evaluating a stock.

The price-earnings ratio (P/E ratio) is an important financial ratio that is often used by investors to assess the attractiveness of a stock. It is an indicator of a company's earnings and valuation, and provides an indication of whether a stock is overvalued or undervalued. It is also used as an indicator of whether a stock is "expensive" or "cheap".

History of P/E ratio

The P/E ratio was first used in 1881 by the famous financial scientist Benjamin Graham. He developed the P/E ratio as a means to evaluate whether a stock is trading at a "good" or "bad" price. Since then, the P/E ratio has had a long history in the financial world, particularly among investors who are looking for a way to evaluate stocks in an informed manner.

Calculation of the P/E ratio

The P/E ratio is calculated by dividing the current stock price by the earnings per share. A simple formula for calculating the P/E ratio is as follows:

P/E ratio = Stock price / Earnings per share

Example: If a stock is traded at the current price of $10 and the earnings per share is $1, the P/E ratio would be 10 ($10 / $1 = 10).

Application of the P/E ratio

Investors use the P/E ratio to assess the attractiveness of a stock. A high P/E ratio can indicate that a stock is overvalued, while a low P/E ratio means that a stock is undervalued. Investors can then decide whether to buy, sell, or hold a stock based on this information. Another reason why investors use the P/E ratio is to check how stocks perform compared to other stocks or the market as a whole. If a stock's P/E ratio is higher than the overall market's P/E ratio, this may mean that the stock is overvalued, and investors can decide whether to sell or hold the stock. Investors usually also use the P/E ratio to compare stocks over time. If a stock has a P/E ratio of 10 and a year later has a P/E ratio of 20, this may mean that the stock is overvalued. Investors can then decide whether to hold or sell the stock.

Advantages and Disadvantages of using the P/E ratio

BenefitsThe P/E ratio is a useful tool to assess the attractiveness of a stock and to evaluate how a stock is performing compared to the market. It is a simple tool that can assist investors in deciding whether to buy, sell, or hold a stock.

DisadvantagesThe P/E ratio is a simple tool that does not provide any information about the future performance of a stock. It can be difficult to predict the future performance of a stock, and sometimes the P/E ratio can give a false picture of a stock. Therefore, investors must be cautious when relying on the P/E ratio.

In addition, the P/E ratio can vary depending on the industry, which makes comparability difficult. For example, a stock in a certain industry may have a low P/E ratio, while another stock in a different industry may have a higher P/E ratio. Therefore, investors must be cautious when relying on the P/E ratio.

Conclusion

The P/E ratio is a useful tool that can assist investors in assessing the attractiveness and value of a stock. It can also be used to check how a stock is performing in comparison to the market. However, it is important to note that it is a simple tool that does not make any statement about the future performance of a stock, and investors must be cautious when relying on the P/E ratio.

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Valuation — Biogen

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