Regeneron's Diversified Growth Makes It My Top Biopharma Pick For 2025

Valuation Methodology - The valuation model assumes free cash flow will grow at a constant annual rate over the next eight years, with each year's projected cash flow discounted back to present value using a fixed discount rate derived via the Capital Asset Pricing Model (CAPM) [1] - A terminal value is calculated by projecting free cash flow into the ninth year, assuming it continues to grow at the same rate, and applying a perpetual growth rate using the Gordon Growth Model, which is also discounted back to present value [1] - Key assumptions include constant growth and discount rates over time, the discount rate exceeding the perpetual growth rate to ensure a finite terminal value, and accurate free cash flow projections reflecting future performance without unexpected changes [1] Investment Strategy - The analyst advocates for a disciplined risk management approach through a barbell strategy, allocating 90% to safe assets and 10% to high-growth opportunities to balance security with potential upside [1] Disclosure and Disclaimer - The article is intended to provide informational content and should not be viewed as an exhaustive analysis or personalized investment advice [3] - The predictions and opinions presented are based on the author's analysis and reflect a probabilistic approach, not absolute certainty [3] - Readers are advised to independently verify the information and conduct their own research before making any investment decisions [3]