Sonic Healthcare Valuation

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

SAB (CHF15.67) is trading below our estimate of [[fair value]] (CHF36.78)

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

Below Fair Value: SAB (CHF15.67) is trading below our estimate of fair value (CHF36.78)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SAB. This is calculated by dividing SAB's market cap by their current preferred multiple.
What is SAB's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	AU$13.36b

SAB 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	2x
Enterprise Value/EBITDA	15.3x
PEG Ratio	2.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SAB 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	47.8x
GALE Galenica	21.4x	5.1%	CHF 3.6b
YPSN Ypsomed Holding	71.6x	32.3%	CHF 5.6b
SOON Sonova Holding	28.9x	7.5%	CHF 17.4b
STMN Straumann Holding	69.1x	21.8%	CHF 19.9b
SAB Sonic Healthcare	26.5x	11.9%	CHF 13.4b

Price-To-Earnings vs Peers: SAB is good value based on its Price-To-Earnings Ratio (26.5x) compared to the peer average (47.8x).

Price to Earnings Ratio vs Industry

How does SAB's PE Ratio compare vs other companies in the European Healthcare Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	18.3%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	18.3%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: SAB is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the European Healthcare industry average (18.6x).

Price to Earnings Ratio vs Fair Ratio

What is SAB'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.

SAB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	26.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SAB's Price-To-Earnings 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?

Analyst Forecast: Insufficient data to show price forecast.