Teva Pharmaceutical Industries Limited

WBAG:TEVA Stock Report

Market Cap: €17.7b

Teva Pharmaceutical Industries Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: TEVA (€15.45) is trading below our estimate of fair value (€67.42)

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

Key Valuation Metric

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

Key metric: As TEVA is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TEVA. This is calculated by dividing TEVA's market cap by their current revenue.
What is TEVA's PS Ratio?
PS Ratio1.1x
SalesUS$16.77b
Market CapUS$18.62b

Price to Sales Ratio vs Peers

How does TEVA's PS Ratio compare to its peers?

The above table shows the PS ratio for TEVA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.3x
SDZ Sandoz Group
1.9x5.7%CHF 17.5b
BAYN Bayer
0.4x1.1%€19.9b
GALD Galderma Group
5.3x11.6%CHF 20.2b
4503 Astellas Pharma
1.6x0.7%JP¥2.9t
TEVA Teva Pharmaceutical Industries
1.1x2.5%€18.6b

Price-To-Sales vs Peers: TEVA is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (2.3x).

Price to Sales Ratio vs Industry

How does TEVA's PS Ratio compare vs other companies in the European Pharmaceuticals Industry?

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.3.2x7.3%
TEVA Teva Pharmaceutical Industries
 1.1x2.5%US$18.62b
TEVA 1.1xIndustry Avg. 3.2xNo. of Companies33PS0612182430+
24 CompaniesEstimated GrowthMarket Cap
Industry Avg.3.2x15.7%
TEVA Teva Pharmaceutical Industries
 1.1x65.8%US$18.62b
No more companies

Price-To-Sales vs Industry: TEVA is good value based on its Price-To-Sales Ratio (1.1x) compared to the European Pharmaceuticals industry average (3.2x).

Price to Sales Ratio vs Fair Ratio

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

TEVA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate TEVA's Price-To-Sales Fair Ratio for valuation analysis.

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 TEVA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€15.45
€21.27
+37.7%
10.8%€24.73€17.12n/a9
Nov ’25€17.20
€20.22
+17.6%
13.3%€24.10€15.76n/a9
Oct ’25€16.05
€19.19
+19.5%
14.2%€23.47€14.44n/a9
Sep ’25€17.00
€18.49
+8.8%
16.2%€21.61€13.38n/a9
Aug ’25€16.10
€18.62
+15.7%
15.8%€22.24€13.77n/a9
Jul ’25€15.10
€17.51
+15.9%
16.6%€21.49€13.55n/a10
Jun ’25€15.60
€16.47
+5.6%
15.1%€20.31€13.39n/a10
May ’25€13.25
€14.67
+10.7%
15.0%€17.71€10.25n/a10
Apr ’25€13.10
€13.87
+5.9%
15.5%€17.39€10.07n/a10
Mar ’25€12.40
€13.63
+9.9%
17.5%€17.56€10.17n/a10
Feb ’25€11.50
€12.19
+6.0%
14.6%€14.72€9.20n/a10
Jan ’25€9.36
€10.28
+9.9%
16.5%€12.82€7.33n/a11
Dec ’24€9.00
€10.08
+12.0%
16.7%€12.78€7.30n/a10
Nov ’24€8.26
€10.41
+26.1%
15.6%€13.32€7.61€17.2010
Oct ’24€9.72
€10.31
+6.1%
15.6%€13.24€7.57€16.0510
Sep ’24€9.12
€9.27
+1.6%
17.4%€12.72€7.27€17.0010
Aug ’24€7.56
€8.73
+15.5%
17.4%€12.47€7.13€16.1010
Jul ’24€6.92
€9.00
+30.0%
19.6%€12.88€6.44€15.109
Jun ’24€6.72
€9.07
+35.0%
19.3%€13.06€6.53€15.609
May ’24€7.48
€9.27
+24.0%
22.5%€12.74€6.37€13.258
Apr ’24€8.14
€9.31
+14.3%
21.1%€12.89€6.44€13.109
Mar ’24€9.36
€9.50
+1.5%
20.2%€13.11€6.55€12.4010
Feb ’24€9.68
€9.23
-4.6%
20.5%€12.00€6.46€11.5010
Jan ’24€8.66
€9.06
+4.6%
17.6%€12.26€6.60€9.3610
Dec ’23€8.36
€9.33
+11.6%
17.3%€12.50€6.73€9.0010
Nov ’23€9.20
€10.44
+13.5%
12.3%€13.18€8.11€8.2610

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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