Alnylam Pharmaceuticals: An Undervaluation Analysis

Investors are closely examining whether Alnylam Pharmaceuticals’ (Nasdaq: ALNY) current share price accurately reflects its intrinsic value. As of February 26, 2026, the stock closed at $327.36, experiencing declines of 3.5% over the past 7 days and 7.7% over the last 30 days. Though, the stock has shown significant gains over longer periods, with increases of 38.1% over the past year, 68.4% over three years, and 138.3% over five years Simply Wall St. Recent developments, including pipeline progress, regulatory milestones, and partnerships, are influencing investor sentiment and valuation.

Valuation Approaches

Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) model estimates a company’s future cash flows and discounts them to present value. For Alnylam Pharmaceuticals, the latest twelve-month Free Cash Flow is approximately $450.10 million Simply Wall St. Analysts’ forecasts extend to 2030, with Simply Wall St projecting Free Cash Flow to reach $3,176.10 million by 2030, with $1,344.66 million in 2026 and $1,971.68 million in 2027. This DCF analysis estimates an intrinsic value of approximately $625.24 per share, suggesting the stock is currently trading at a 47.6% discount to its estimated fair value Simply Wall St.

Price vs Earnings

Alnylam Pharmaceuticals currently has a Price-to-Earnings (P/E) ratio of 138.38x. This is significantly higher than the Biotechs industry average of 23.05x and the peer group average of 18.06x Simply Wall St. Simply Wall St’s Fair Ratio for Alnylam is 33.65x, suggesting the current market multiple is materially higher than justified by fundamentals Simply Wall St.

Narrative Analysis

Simply Wall St’s Community page offers investor “Narratives” – structured bullish and bearish scenarios tied to revenue, margin, and valuation assumptions.

• Bull Case: Fair value of $491.92 per share, implying a 33.4% discount. This scenario assumes revenue growth of 35.95% per year, driven by growing market adoption of RNAi therapies, international expansion, and efficient payer access Simply Wall St.
• Bear Case: Fair value of $322.59 per share, implying a 1.5% premium. This scenario assumes revenue growth of 22.36% per year, with concerns about reliance on TTR therapies, slowing AMVUTTRA uptake, and pricing/reimbursement pressures Simply Wall St.

Company Overview

Alnylam Pharmaceuticals, Inc. Discovers, develops, manufactures, and commercializes therapeutics based on ribonucleic acid interference (RNAi) in the United States, Europe, and internationally Simply Wall St. The company’s market capitalization is approximately US$43.4 billion Simply Wall St.