EBS Fair Value
What is the fair value of EBS?
As of 2025-07-03, the Fair Value of Emergent BioSolutions Inc (EBS) is -24.68 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 7.11 USD, the upside of Emergent BioSolutions Inc is -447.1%.
Is EBS a good investment?
With the market price of 7.11 USD and our fair value calculation, Emergent BioSolutions Inc (EBS) is not a good investment. Investing in EBS stocks now will result in a potential loss of 447.1%.
Note: valuation result may not be accurate due to the company's negative EPS.
Peter Lynch's formula is:
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
| Historical Earnings | ||||||
| 12-2020 | 12-2021 | 12-2022 | 12-2023 | 12-2024 | 5Y Avg | |
| Net income | 305.1 | 219.5 | -211.6 | -760.5 | -190.6 | -128 |
| YoY growth | 459.8% | -28.1% | -196.4% | -259.4% | 74.9% | 10.2% |
| Market Cap (mil) | EPS | Fair Value | Upside | ||
| a | |||||
Emergent BioSolutions Inc | 386 | -2.4 | -24.68 | -447.1% | |
| United Therapeutics Corp | 13,317 | 26.8 | 670.97 | 127.3% | |
| Halozyme Therapeutics Inc | 6,634 | 3.9 | 98.48 | 82.9% | |
| Alkermes Plc | 4,781 | 2.1 | 53.38 | 84.1% | |
| Amicus Therapeutics Inc | 1,832 | -0.1 | -2.38 | -140.1% | |
| Ironwood Pharmaceuticals Inc | 120 | -0.2 | -5 | -775.5% | |
| FibroGen Inc | 21 | -2.5 | -12.65 | -341% | |
| Market Cap (mil) | 386 |
| P/E | - |
| Forward P/E | - |
| EPS | -2.42 |
| Avg earnings growth rate | 10.2% |
| TTM earnings | -132 |
Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.
Therefore, his formula to determine a company's fair value is:
Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG
PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.