Lonza Group Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Discounted Cash Flow
Simply Wall St
CHF 47.41
Fair Value
1.1k% overvalued intrinsic discount
21
Number of Analysts

Below Fair Value: LONN (CHF584.2) is trading above our estimate of fair value (CHF47.41)

Significantly Below Fair Value: LONN is trading above our estimate of fair value.


Key Valuation Metric

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

Key metric: As LONN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LONN. This is calculated by dividing LONN's market cap by their current earnings.
What is LONN's PE Ratio?
PE Ratio66.3x
EarningsCHF 636.00m
Market CapCHF 42.19b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LONN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.3x
SFZN Siegfried Holding
26.8x10.5%CHF 4.3b
BANB Bachem Holding
38.3x17.8%CHF 4.4b
TECN Tecan Group
26.1x12.9%CHF 2.6b
SKAN SKAN Group
54.1x17.9%CHF 1.7b
LONN Lonza Group
66.3x21.1%CHF 42.2b

Price-To-Earnings vs Peers: LONN is expensive based on its Price-To-Earnings Ratio (66.3x) compared to the peer average (36.3x).


Price to Earnings Ratio vs Industry

How does LONN's PE Ratio compare vs other companies in the European Life Sciences Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LONN 66.3xIndustry Avg. 33.2xNo. of Companies5PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LONN is expensive based on its Price-To-Earnings Ratio (66.3x) compared to the European Life Sciences industry average (34.5x).


Price to Earnings Ratio vs Fair Ratio

What is LONN'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.

LONN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio66.3x
Fair PE Ratio41x

Price-To-Earnings vs Fair Ratio: LONN is expensive based on its Price-To-Earnings Ratio (66.3x) compared to the estimated Fair Price-To-Earnings Ratio (41x).


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 LONN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 584.20
CHF 659.86
+13.0%
7.2%CHF 744.00CHF 550.00n/a21
Feb ’26CHF 582.00
CHF 647.48
+11.3%
6.8%CHF 740.00CHF 550.00n/a21
Jan ’26CHF 535.80
CHF 635.62
+18.6%
6.7%CHF 723.00CHF 530.00n/a21
Dec ’25CHF 526.40
CHF 632.71
+20.2%
7.7%CHF 760.00CHF 530.00n/a21
Nov ’25CHF 549.00
CHF 631.85
+15.1%
7.9%CHF 760.00CHF 530.00n/a20
Oct ’25CHF 535.20
CHF 624.14
+16.6%
6.4%CHF 700.00CHF 530.00n/a21
Sep ’25CHF 555.60
CHF 619.41
+11.5%
7.0%CHF 700.00CHF 530.00n/a22
Aug ’25CHF 587.40
CHF 613.55
+4.5%
8.0%CHF 700.00CHF 495.00n/a22
Jul ’25CHF 488.40
CHF 586.00
+20.0%
9.4%CHF 666.00CHF 450.00n/a22
Jun ’25CHF 486.40
CHF 576.86
+18.6%
12.1%CHF 655.00CHF 375.00n/a22
May ’25CHF 510.40
CHF 566.00
+10.9%
12.1%CHF 650.00CHF 375.00n/a22
Apr ’25CHF 540.20
CHF 556.00
+2.9%
12.8%CHF 650.00CHF 375.00n/a22
Mar ’25CHF 465.60
CHF 508.25
+9.2%
13.3%CHF 635.00CHF 365.00n/a20
Feb ’25CHF 427.70
CHF 495.20
+15.8%
14.0%CHF 600.00CHF 365.00CHF 582.0020
Jan ’25CHF 353.70
CHF 465.16
+31.5%
18.5%CHF 600.00CHF 270.00CHF 535.8019
Dec ’24CHF 334.80
CHF 513.11
+53.3%
21.9%CHF 705.00CHF 365.00CHF 526.4019
Nov ’24CHF 318.60
CHF 531.26
+66.7%
20.8%CHF 705.00CHF 365.00CHF 549.0019
Oct ’24CHF 425.60
CHF 627.41
+47.4%
8.5%CHF 705.00CHF 514.00CHF 535.2017
Sep ’24CHF 492.50
CHF 629.83
+27.9%
7.3%CHF 705.00CHF 530.00CHF 555.6018
Aug ’24CHF 505.20
CHF 647.06
+28.1%
6.9%CHF 705.00CHF 570.00CHF 587.4018
Jul ’24CHF 533.40
CHF 679.24
+27.3%
11.1%CHF 900.00CHF 580.00CHF 488.4017
Jun ’24CHF 575.80
CHF 659.84
+14.6%
16.9%CHF 900.00CHF 315.05CHF 486.4018
May ’24CHF 553.80
CHF 663.36
+19.8%
17.1%CHF 900.00CHF 315.05CHF 510.4017
Apr ’24CHF 547.40
CHF 662.77
+21.1%
17.1%CHF 900.00CHF 315.05CHF 540.2017
Mar ’24CHF 559.60
CHF 662.89
+18.5%
16.6%CHF 900.00CHF 315.05CHF 465.6018
Feb ’24CHF 521.00
CHF 659.65
+26.6%
18.0%CHF 935.00CHF 315.05CHF 427.7017
Analyst Price Target
Consensus Narrative from 21 Analysts
CHF 659.86
Fair Value
11.5% undervalued intrinsic discount
21
Number of Analysts

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


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/20 08:58
End of Day Share Price 2025/02/20 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Lonza Group AG is covered by 47 analysts. 21 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Martin SchneeAlphaValue
Charles Pitman-KingBarclays
Sebastian BrayBerenberg