Setting the scene for BioMarin Pharmaceutical

BioMarin Pharmaceutical (BMRN) has been drawing attention after recent share price swings, with a 1 day return of 1.7% and a past 3 months return of 13.0% catching investor eyes.

At a share price of $58.13, BioMarin Pharmaceutical’s recent 90 day share price return of 13.0% contrasts with a 1 year total shareholder return decline of 9.1%. This suggests shorter term momentum alongside weaker longer term outcomes.

If BioMarin’s recent move has you thinking about where growth in healthcare could come from next, it might be worth scanning our list of 26 healthcare AI stocks as a starting point for fresh ideas.

With BioMarin trading at $58.13 and internal estimates suggesting a sizeable intrinsic discount, plus a value score of 3, investors are left asking: is this a mispriced rare disease specialist, or is the market already baking in future growth?

Most Popular Narrative: 35.9% Undervalued

BioMarin Pharmaceutical’s fair value in the most followed narrative sits at $90.74 against the current $58.13 share price, and the gap hinges on how future growth and profitability play out.

Analysts are assuming BioMarin Pharmaceutical's revenue will grow by 7.6% annually over the next 3 years.

Analysts assume that profit margins will increase from 21.5% today to 29.8% in 3 years time.

Read the complete narrative. Read the complete narrative.

Want to see what turns today’s earnings into that higher fair value range? The core of this narrative is steady revenue gains and a stronger profit profile supporting a richer future earnings multiple. Curious which exact growth and margin assumptions have been baked in, and how sensitive that is to execution?

Result: Fair Value of $90.74 (UNDERVALUED)

However, there is still meaningful execution risk, with heavier R&D and SG&A spending or tougher rare disease pricing potentially undermining the margin and earnings story behind that valuation gap.

Build Your Own BioMarin Pharmaceutical Narrative

If you see the assumptions differently or simply prefer to weigh the data yourself, you can build a custom BioMarin view in just a few minutes: Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding BioMarin Pharmaceutical.

Looking for more investment ideas?

If you are only focused on BioMarin, you could miss other opportunities, so give yourself options by scanning a few different types of stocks before you decide.

• Spot potential higher risk higher reward moves by checking out our 25 elite penny stocks with strong financials that stand out for their financial strength.
• Zero in on potential value opportunities with our 53 high quality undervalued stocks that combine quality fundamentals with more modest pricing.
• Prioritize financial resilience by reviewing companies in our solid balance sheet and fundamentals stocks screener (45 results) that pair stable finances with room for future decisions.

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.