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DCF Valuation
Base-case fair value
$20.18
Intrinsic $26.90 · 25% MOS
Current price: $74.31
Base-case summary
Our base-case DCF for Ionis Pharmaceuticals Inc (IONS) projects 10 years of free cash flow growth at 8.0% for years 1–5 and 4.0% for years 6–10, anchored to a default 8% growth assumption, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from the 3-year average of positive free cash flow ($111M) — TTM FCF was negative, this produces an intrinsic value of $26.90 per share. A 25% safety margin gives a fair value of $20.18, suggesting the stock is currently 73% overvalued against the $74.31 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
TTM FCF is negative (-$971M). Projecting from a negative base produces nonsensical results, so this model uses the 3-year average of positive FCF ($111M) as the base instead. Treat this valuation as a rough estimate — it assumes a return to historical profitability.
Model inputs
Free Cash Flow (3yr avg)
$111M
Cash & equivalents
$1.9B
Total debt
$259M
Shares outstanding
165M