Lonza Group Valuation

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

LONN (CHF581) is trading above our estimate of [[fair value]] (CHF492.45)

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.

Below Fair Value: LONN (CHF581) is trading above our estimate of fair value (CHF492.45)

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?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LONN. This is calculated by dividing LONN's market cap by their current preferred multiple.
What is LONN's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	CHF 41.96b

LONN 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	6.5x
Enterprise Value/EBITDA	22.9x
PEG Ratio	3x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	47.3x
BANB Bachem Holding	52.1x	18.6%	CHF 5.9b
SFZN Siegfried Holding	38.5x	14.4%	CHF 4.3b
TECN Tecan Group	32.1x	9.2%	CHF 4.2b
SKAN SKAN Group	66.6x	20.6%	CHF 1.8b
LONN Lonza Group	64.2x	21.1%	CHF 42.0b

Price-To-Earnings vs Peers: LONN is expensive based on its Price-To-Earnings Ratio (64.2x) compared to the peer average (47.3x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	20.2%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	20.2%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: LONN is expensive based on its Price-To-Earnings Ratio (64.2x) compared to the European Life Sciences industry average (41.7x).

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 Ratio	64.2x
Fair PE Ratio	37.6x

Price-To-Earnings vs Fair Ratio: LONN is expensive based on its Price-To-Earnings Ratio (64.2x) compared to the estimated Fair Price-To-Earnings Ratio (37.6x).

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CHF 581.00	CHF 605.82 +4.3%	8.2%	CHF 667.00	CHF 495.00	n/a	22
Jul ’25	CHF 488.40	CHF 586.00 +20.0%	9.4%	CHF 666.00	CHF 450.00	n/a	22
Jun ’25	CHF 486.40	CHF 576.86 +18.6%	12.1%	CHF 655.00	CHF 375.00	n/a	22
May ’25	CHF 510.40	CHF 566.00 +10.9%	12.1%	CHF 650.00	CHF 375.00	n/a	22
Apr ’25	CHF 540.20	CHF 556.00 +2.9%	12.8%	CHF 650.00	CHF 375.00	n/a	22
Mar ’25	CHF 465.60	CHF 508.25 +9.2%	13.3%	CHF 635.00	CHF 365.00	n/a	20
Feb ’25	CHF 427.70	CHF 495.20 +15.8%	14.0%	CHF 600.00	CHF 365.00	n/a	20
Jan ’25	CHF 353.70	CHF 465.16 +31.5%	18.5%	CHF 600.00	CHF 270.00	n/a	19
Dec ’24	CHF 334.80	CHF 513.11 +53.3%	21.9%	CHF 705.00	CHF 365.00	n/a	19
Nov ’24	CHF 318.60	CHF 531.26 +66.7%	20.8%	CHF 705.00	CHF 365.00	n/a	19
Oct ’24	CHF 425.60	CHF 627.41 +47.4%	8.5%	CHF 705.00	CHF 514.00	n/a	17
Sep ’24	CHF 492.50	CHF 629.83 +27.9%	7.3%	CHF 705.00	CHF 530.00	n/a	18
Aug ’24	CHF 505.20	CHF 647.06 +28.1%	6.9%	CHF 705.00	CHF 570.00	n/a	18
Jul ’24	CHF 533.40	CHF 679.24 +27.3%	11.1%	CHF 900.00	CHF 580.00	CHF 488.40	17
Jun ’24	CHF 575.80	CHF 659.84 +14.6%	16.9%	CHF 900.00	CHF 315.05	CHF 486.40	18
May ’24	CHF 553.80	CHF 663.36 +19.8%	17.1%	CHF 900.00	CHF 315.05	CHF 510.40	17
Apr ’24	CHF 547.40	CHF 662.77 +21.1%	17.1%	CHF 900.00	CHF 315.05	CHF 540.20	17
Mar ’24	CHF 559.60	CHF 662.89 +18.5%	16.6%	CHF 900.00	CHF 315.05	CHF 465.60	18
Feb ’24	CHF 521.00	CHF 659.65 +26.6%	18.0%	CHF 935.00	CHF 315.05	CHF 427.70	17
Jan ’24	CHF 453.10	CHF 680.88 +50.3%	19.4%	CHF 965.00	CHF 315.05	CHF 353.70	16
Dec ’23	CHF 509.00	CHF 699.00 +37.3%	17.8%	CHF 965.00	CHF 315.05	CHF 334.80	16
Nov ’23	CHF 489.00	CHF 709.06 +45.0%	18.2%	CHF 965.00	CHF 315.05	CHF 318.60	17
Oct ’23	CHF 486.30	CHF 718.38 +47.7%	18.6%	CHF 965.00	CHF 315.05	CHF 425.60	16
Sep ’23	CHF 510.00	CHF 756.58 +48.3%	12.5%	CHF 965.00	CHF 620.00	CHF 492.50	16
Aug ’23	CHF 576.20	CHF 759.60 +31.8%	12.1%	CHF 965.00	CHF 620.00	CHF 505.20	17
Jul ’23	CHF 519.20	CHF 789.01 +52.0%	11.5%	CHF 926.26	CHF 620.00	CHF 533.40	18

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