Alcon Inc.

SWX:ALC Stock Report

Market Cap: CHF 40.5b

Alcon Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: ALC (CHF81.12) is trading below our estimate of fair value (CHF93.9)

Significantly Below Fair Value: ALC is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ALC 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/Revenue5.2x
Enterprise Value/EBITDA22.2x
PEG Ratio4.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ALC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average47.6x
YPSN Ypsomed Holding
69.7x32.3%CHF 5.5b
STMN Straumann Holding
73.6x20.8%CHF 18.1b
SOON Sonova Holding
26.3x9.0%CHF 15.8b
VBSN IVF Hartmann Holding
20.8xn/aCHF 314.4m
ALC Alcon
43.6x9.5%CHF 40.1b

Price-To-Earnings vs Peers: ALC is good value based on its Price-To-Earnings Ratio (43.6x) compared to the peer average (47.7x).

Price to Earnings Ratio vs Industry

How does ALC's PE Ratio compare vs other companies in the European Medical Equipment Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.5%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.5%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: ALC is expensive based on its Price-To-Earnings Ratio (43.6x) compared to the European Medical Equipment industry average (30.3x).

Price to Earnings Ratio vs Fair Ratio

What is ALC'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.

ALC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43.8x
Fair PE Ratio40.4x

Price-To-Earnings vs Fair Ratio: ALC is expensive based on its Price-To-Earnings Ratio (43.6x) compared to the estimated Fair Price-To-Earnings Ratio (40.3x).

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 ALC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 81.98
CHF 83.96
+2.4%
12.0%CHF 103.12CHF 60.26n/a15
Jul ’25CHF 80.18
CHF 84.17
+5.0%
10.3%CHF 91.01CHF 61.48n/a15
Jun ’25CHF 80.34
CHF 84.23
+4.8%
10.2%CHF 91.35CHF 61.72n/a16
May ’25CHF 71.10
CHF 84.69
+19.1%
9.5%CHF 92.19CHF 64.16n/a16
Apr ’25CHF 74.74
CHF 84.13
+12.6%
10.0%CHF 91.61CHF 63.76n/a16
Mar ’25CHF 76.12
CHF 80.16
+5.3%
11.4%CHF 90.46CHF 59.22n/a16
Feb ’25CHF 64.98
CHF 78.50
+20.8%
9.9%CHF 90.11CHF 57.44n/a15
Jan ’25CHF 65.64
CHF 76.88
+17.1%
11.3%CHF 89.97CHF 56.26n/a12
Dec ’24CHF 65.72
CHF 79.41
+20.8%
9.1%CHF 91.06CHF 64.51n/a14
Nov ’24CHF 65.58
CHF 83.82
+27.8%
8.4%CHF 93.25CHF 65.97n/a13
Oct ’24CHF 70.94
CHF 86.99
+22.6%
6.0%CHF 94.76CHF 77.68n/a12
Sep ’24CHF 73.20
CHF 84.38
+15.3%
6.2%CHF 91.82CHF 73.49n/a13
Aug ’24CHF 74.04
CHF 81.56
+10.2%
7.9%CHF 90.04CHF 68.76n/a12
Jul ’24CHF 74.10
CHF 83.18
+12.2%
6.9%CHF 90.13CHF 71.87CHF 80.1812
Jun ’24CHF 71.30
CHF 83.18
+16.7%
6.9%CHF 90.13CHF 71.87CHF 80.3412
May ’24CHF 64.82
CHF 78.12
+20.5%
9.1%CHF 86.47CHF 62.61CHF 71.1012
Apr ’24CHF 64.70
CHF 78.86
+21.9%
9.3%CHF 88.21CHF 63.87CHF 74.7411
Mar ’24CHF 63.54
CHF 79.56
+25.2%
8.9%CHF 88.11CHF 63.88CHF 76.1211
Feb ’24CHF 68.76
CHF 76.95
+11.9%
11.2%CHF 85.39CHF 58.57CHF 64.9811
Jan ’24CHF 63.18
CHF 76.01
+20.3%
11.2%CHF 84.90CHF 58.94CHF 65.6410
Dec ’23CHF 65.48
CHF 79.53
+21.5%
9.4%CHF 87.44CHF 60.70CHF 65.728
Nov ’23CHF 60.70
CHF 84.19
+38.7%
5.1%CHF 89.51CHF 74.70CHF 65.588
Oct ’23CHF 58.14
CHF 81.32
+39.9%
4.1%CHF 86.07CHF 74.76CHF 70.948
Sep ’23CHF 64.18
CHF 83.16
+29.6%
4.3%CHF 88.65CHF 76.30CHF 73.207
Aug ’23CHF 74.44
CHF 80.47
+8.1%
7.6%CHF 87.71CHF 66.66CHF 74.048
Jul ’23CHF 67.42
CHF 79.64
+18.1%
7.6%CHF 86.70CHF 65.89CHF 74.108

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

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