AstraZeneca Valuation

Q: What is the Fair Price of AZN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

AZN (£112.06) is trading below our estimate of [[fair value]] (£220.62)

Is AZN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AZN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AZN (£112.06) is trading below our estimate of fair value (£220.62)

Significantly Below Fair Value: AZN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AZN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AZN. This is calculated by dividing AZN's market cap by their current preferred multiple.
What is AZN's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$225.32b

AZN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.1x
Enterprise Value/EBITDA	14.9x
PEG Ratio	2.1x

Price to Earnings Ratio vs Peers

How does AZN's PE Ratio compare to its peers?

The above table shows the PE ratio for AZN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	17.9x
GSK GSK	14.2x	14.9%	UK£57.4b
HIK Hikma Pharmaceuticals	19.2x	12.7%	UK£4.2b
MRK Merck	19.3x	14.1%	US$262.9b
NOVN Novartis	18.7x	7.1%	CHF 190.6b
AZN AstraZeneca	35x	16.5%	UK£173.7b

Price-To-Earnings vs Peers: AZN is expensive based on its Price-To-Earnings Ratio (35x) compared to the peer average (17.9x).

Price to Earnings Ratio vs Industry

How does AZN's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	16.5%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	16.5%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: AZN is expensive based on its Price-To-Earnings Ratio (35x) compared to the European Pharmaceuticals industry average (20.6x).

Price to Earnings Ratio vs Fair Ratio

What is AZN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AZN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	35x
Fair PE Ratio	48.6x

Price-To-Earnings vs Fair Ratio: AZN is good value based on its Price-To-Earnings Ratio (35x) compared to the estimated Fair Price-To-Earnings Ratio (48.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AZN forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	UK£112.06	UK£143.08 +27.7%	15.3%	UK£201.55	UK£106.01	n/a	19
Oct ’25	UK£118.00	UK£139.45 +18.2%	14.6%	UK£196.69	UK£104.94	n/a	20
Sep ’25	UK£132.74	UK£137.53 +3.6%	11.7%	UK£171.95	UK£107.68	n/a	21
Aug ’25	UK£125.12	UK£140.20 +12.1%	11.6%	UK£175.68	UK£110.01	n/a	22
Jul ’25	UK£123.04	UK£138.12 +12.3%	12.1%	UK£178.59	UK£108.70	n/a	22
Jun ’25	UK£121.90	UK£135.18 +10.9%	12.3%	UK£176.60	UK£107.84	n/a	22
May ’25	UK£121.70	UK£131.91 +8.4%	13.5%	UK£176.24	UK£105.08	n/a	20
Apr ’25	UK£106.78	UK£128.48 +20.3%	14.9%	UK£177.07	UK£95.60	n/a	21
Mar ’25	UK£100.80	UK£127.76 +26.7%	14.3%	UK£177.11	UK£94.64	n/a	21
Feb ’25	UK£104.30	UK£129.70 +24.4%	12.1%	UK£171.03	UK£107.26	n/a	21
Jan ’25	UK£106.00	UK£130.27 +22.9%	10.4%	UK£167.36	UK£105.81	n/a	21
Dec ’24	UK£101.98	UK£130.53 +28.0%	10.3%	UK£167.08	UK£105.64	n/a	21
Nov ’24	UK£103.36	UK£136.75 +32.3%	9.9%	UK£177.28	UK£111.16	n/a	22
Oct ’24	UK£111.02	UK£139.20 +25.4%	9.3%	UK£176.89	UK£115.94	UK£118.00	22
Sep ’24	UK£107.00	UK£134.82 +26.0%	10.4%	UK£172.62	UK£106.75	UK£132.74	23
Aug ’24	UK£111.96	UK£134.26 +19.9%	10.4%	UK£173.77	UK£105.72	UK£125.12	23
Jul ’24	UK£112.76	UK£133.63 +18.5%	9.6%	UK£171.80	UK£105.56	UK£123.04	22
Jun ’24	UK£116.70	UK£133.80 +14.7%	9.9%	UK£174.13	UK£106.99	UK£121.90	22
May ’24	UK£117.46	UK£131.64 +12.1%	10.0%	UK£174.43	UK£108.01	UK£121.70	22
Apr ’24	UK£112.32	UK£128.16 +14.1%	10.3%	UK£168.18	UK£99.79	UK£106.78	23
Mar ’24	UK£108.16	UK£129.39 +19.6%	14.1%	UK£176.64	UK£69.54	UK£100.80	25
Feb ’24	UK£102.80	UK£125.70 +22.3%	15.1%	UK£172.00	UK£65.08	UK£104.30	25
Jan ’24	UK£112.18	UK£124.28 +10.8%	15.0%	UK£172.58	UK£66.62	UK£106.00	25
Dec ’23	UK£112.00	UK£118.86 +6.1%	15.3%	UK£170.40	UK£65.78	UK£101.98	25
Nov ’23	UK£103.46	UK£121.42 +17.4%	15.1%	UK£174.31	UK£70.14	UK£103.36	24
Oct ’23	UK£99.44	UK£129.70 +30.4%	14.8%	UK£184.44	UK£76.83	UK£111.02	25

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.