Bausch Health Companies Inc.

TSX:BHC Stock Report

Market Cap: CA$4.1b

Bausch Health Companies Valuation

Is BHC 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 BHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BHC (CA$11.39) is trading below our estimate of fair value (CA$70.07)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for BHC. This is calculated by dividing BHC's market cap by their current revenue.
What is BHC's PS Ratio?
PS Ratio0.3x
SalesUS$9.47b
Market CapUS$2.90b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for BHC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.8x
GTII Green Thumb Industries
2x10.4%CA$3.1b
CURA Curaleaf Holdings
1.1x13.5%CA$2.1b
TRUL Trulieve Cannabis
1x6.0%CA$1.6b
CRON Cronos Group
7.2x4.9%CA$1.1b
BHC Bausch Health Companies
0.3x1.5%CA$2.9b

Price-To-Sales vs Peers: BHC is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (2.8x).

Price to Sales Ratio vs Industry

How does BHC's PS Ratio compare vs other companies in the CA Pharmaceuticals Industry?

23 CompaniesPrice / SalesEstimated GrowthMarket Cap
AYR.A Ayr Wellness
0.2x2.5%US$82.15m
IAN iAnthus Capital Holdings
0.1xn/aUS$23.79m
MRV Nuvo Pharmaceuticals
0.2xn/aUS$11.21m
AH Aleafia Health
0.2xn/aUS$5.93m
BHC 0.3xIndustry Avg. 0.9xNo. of Companies23PS012345+
23 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: BHC is good value based on its Price-To-Sales Ratio (0.3x) compared to the Canadian Pharmaceuticals industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is BHC'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.

BHC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio1.4x

Price-To-Sales vs Fair Ratio: BHC is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (1.4x).

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 BHC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$11.39
CA$11.96
+5.0%
36.8%CA$16.75CA$4.19n/a7
Nov ’25CA$13.65
CA$11.54
-15.5%
35.2%CA$16.71CA$4.18n/a7
Oct ’25CA$11.15
CA$10.85
-2.7%
32.0%CA$16.27CA$4.07n/a8
Sep ’25CA$7.99
CA$10.85
+35.8%
31.5%CA$16.53CA$4.13n/a8
Aug ’25CA$8.47
CA$11.88
+40.2%
35.7%CA$18.04CA$4.16n/a8
Jul ’25CA$9.54
CA$13.37
+40.2%
20.0%CA$17.77CA$9.57n/a7
Jun ’25CA$8.95
CA$13.37
+49.4%
20.0%CA$17.77CA$9.57n/a7
May ’25CA$12.03
CA$14.16
+17.7%
26.9%CA$21.87CA$9.57n/a7
Apr ’25CA$14.12
CA$13.28
-5.9%
30.6%CA$21.71CA$9.50n/a7
Mar ’25CA$13.40
CA$13.28
-0.9%
30.6%CA$21.71CA$9.50n/a7
Feb ’25CA$10.70
CA$13.01
+21.6%
33.6%CA$21.92CA$8.22n/a7
Jan ’25CA$10.63
CA$13.01
+22.4%
33.6%CA$21.92CA$8.22n/a7
Dec ’24CA$9.93
CA$13.01
+31.1%
33.6%CA$21.92CA$8.22n/a7
Nov ’24CA$9.83
CA$13.01
+32.3%
33.6%CA$21.91CA$8.22CA$13.657
Oct ’24CA$11.20
CA$13.10
+16.9%
32.6%CA$21.73CA$8.15CA$11.157
Sep ’24CA$11.49
CA$11.56
+0.6%
20.6%CA$16.32CA$8.16CA$7.997
Aug ’24CA$12.60
CA$11.29
-10.4%
20.8%CA$15.80CA$7.90CA$8.477
Jul ’24CA$10.60
CA$11.24
+6.1%
22.5%CA$15.87CA$7.94CA$9.546
Jun ’24CA$11.04
CA$16.66
+50.9%
82.7%CA$47.28CA$8.11CA$8.956
May ’24CA$10.18
CA$17.85
+75.3%
75.2%CA$47.75CA$9.55CA$12.036
Apr ’24CA$10.95
CA$19.13
+74.7%
75.3%CA$47.81CA$9.56CA$14.125
Mar ’24CA$12.52
CA$18.10
+44.6%
73.1%CA$47.51CA$9.50CA$13.406
Feb ’24CA$10.39
CA$16.40
+57.9%
81.0%CA$47.84CA$8.20CA$10.707
Jan ’24CA$8.50
CA$16.38
+92.7%
81.0%CA$47.78CA$8.19CA$10.637
Dec ’23CA$10.34
CA$16.17
+56.4%
81.0%CA$47.17CA$8.09CA$9.937
Nov ’23CA$9.43
CA$17.34
+83.9%
90.7%CA$54.56CA$6.82CA$9.837

Analyst Forecast: Target price is less than 20% higher than the current share price.

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