- Wondering whether Bio-Techne at around US$50.95 is starting to look interesting, or if the price still does not line up with its underlying value.
- The stock has seen a 1% decline over the past week, a 12% decline over the past month, and is down 14.6% year to date, with a 12.7% decline over the past year and deeper falls over 3 and 5 years, which can change how investors think about both its growth potential and risk.
- These share price moves sit against a backdrop of ongoing interest in life sciences tools and diagnostics companies. Investors are weighing up long term demand for research and clinical products against company specific execution and capital allocation. For Bio-Techne, this context matters because sentiment in the sector can influence how the market prices its future cash flows even without company specific headlines driving every move.
- Currently, Bio-Techne has a valuation score of 3/6, which means it screens as undervalued on half of the checks used here. The next sections will walk through those approaches, before finishing with a broader way to think about what the valuation really implies for you as an investor.
Find out why Bio-Techne's -12.7% return over the last year is lagging behind its peers.
Approach 1: Bio-Techne Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model estimates what a business might be worth by projecting the cash it could generate in the future and discounting those cash flows back to today.
For Bio-Techne, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month Free Cash Flow stands at about $205.7 million. Analysts provide explicit forecasts out to 2027, where Free Cash Flow is projected at $392.6 million, and Simply Wall St extends this further using its own extrapolations. By 2035, the model is using an estimated Free Cash Flow of $715.4 million, all in $.
When these projected cash flows are discounted back to today, the DCF model arrives at an estimated intrinsic value of about $71.87 per share. Against a current share price of around $50.95, this implies the stock is about 29.1% undervalued based on these assumptions.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Bio-Techne is undervalued by 29.1%. Track this in your watchlist or portfolio, or discover 61 more high quality undervalued stocks.
Approach 2: Bio-Techne Price vs Earnings
For profitable companies, the P/E ratio is a useful way to think about valuation because it links what you pay for each share directly to the earnings that support that share price. A higher or lower P/E often reflects what the market is baking in for future growth and the risk around those earnings.
In general, faster expected earnings growth or lower perceived risk can justify a higher P/E, while slower growth or higher risk typically lines up with a lower, more cautious multiple. That is why comparing a company’s P/E with sensible benchmarks can help you judge whether expectations look stretched or conservative.
Bio-Techne currently trades on a P/E of 98.34x. This is above the Life Sciences industry average of about 30.44x and the peer group average of 20.12x. Simply Wall St’s proprietary Fair Ratio for Bio-Techne is 24.18x. The Fair Ratio aims to capture what would be a more tailored P/E for the company by blending factors such as its earnings growth profile, profit margins, size, risks and industry characteristics, rather than relying only on broad peer or sector comparisons.
On this Fair Ratio basis, Bio-Techne’s current P/E of 98.34x is higher than the 24.18x Fair Ratio, which indicates that the shares screen as overvalued on this metric.
Result: OVERVALUED
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Upgrade Your Decision Making: Choose your Bio-Techne Narrative
Earlier it was mentioned that there is an even better way to understand valuation. Meet Narratives, a simple tool on Simply Wall St’s Community page that lets you attach a clear story about Bio-Techne to concrete numbers like your own fair value, revenue path, earnings and margin assumptions. It then compares that Fair Value to the current price and keeps it updated as news or earnings arrive. For example, one investor might build a more cautious Bio-Techne Narrative that lines up with a Fair Value of about US$65.41, while another builds a more optimistic view closer to US$75.00. Seeing those different stories side by side helps you decide which version of the future you think is more reasonable before choosing whether the current share price around US$50.95 looks attractive or stretched for you.
Do you think there's more to the story for Bio-Techne? Head over to our Community to see what others are saying!
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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