Organon Valuation

Is 7XP 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-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 7XP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7XP (€15.03) is trading below our estimate of fair value (€86.71)

Significantly Below Fair Value: 7XP is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7XP?

Key metric: As 7XP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7XP. This is calculated by dividing 7XP's market cap by their current earnings.
What is 7XP's PE Ratio?
PE Ratio3.2x
EarningsUS$1.30b
Market CapUS$4.07b

Price to Earnings Ratio vs Peers

How does 7XP's PE Ratio compare to its peers?

The above table shows the PE ratio for 7XP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.9x
DMP Dermapharm Holding
22x18.1%€2.0b
MRK Merck KGaA
22.9x10.9%€61.7b
PSG PharmaSGP Holding
17x13.9%€309.3m
2FJ0 Pierrel
29.9xn/a€92.8m
7XP Organon
3.2x-7.1%€4.1b

Price-To-Earnings vs Peers: 7XP is good value based on its Price-To-Earnings Ratio (3.2x) compared to the peer average (22.9x).


Price to Earnings Ratio vs Industry

How does 7XP's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.20.0x21.2%
7XP Organon
3.2x-7.1%US$4.07b
7XP 3.2xIndustry Avg. 20.0xNo. of Companies13PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
Industry Avg.20.0x21.2%
7XP Organon
3.2x-7.1%US$4.07b
No more companies

Price-To-Earnings vs Industry: 7XP is good value based on its Price-To-Earnings Ratio (3.2x) compared to the European Pharmaceuticals industry average (20x).


Price to Earnings Ratio vs Fair Ratio

What is 7XP'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.

7XP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.2x
Fair PE Ratio12.4x

Price-To-Earnings vs Fair Ratio: 7XP is good value based on its Price-To-Earnings Ratio (3.2x) compared to the estimated Fair Price-To-Earnings Ratio (12.4x).


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 7XP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€15.03
€21.13
+40.6%
19.7%€27.38€16.05n/a8
Nov ’25€16.72
€20.88
+24.9%
20.0%€27.68€15.69n/a8
Oct ’25€16.94
€20.52
+21.2%
19.3%€27.06€15.33n/a8
Sep ’25€20.13
€20.60
+2.3%
20.4%€27.47€15.56n/a8
Aug ’25€20.09
€20.74
+3.2%
20.6%€27.66€14.75n/a8
Jul ’25€18.89
€20.87
+10.5%
20.6%€27.82€14.84n/a8
Jun ’25€19.63
€20.87
+6.3%
20.6%€27.82€14.84n/a8
May ’25€17.39
€20.29
+16.7%
21.7%€26.12€13.99n/a8
Apr ’25€17.33
€19.75
+14.0%
22.2%€25.87€13.86n/a8
Mar ’25€16.15
€19.75
+22.3%
22.2%€25.87€13.86n/a8
Feb ’25€15.83
€18.67
+18.0%
27.0%€24.66€10.96n/a9
Jan ’25€13.01
€18.63
+43.3%
28.0%€24.74€10.08n/a9
Dec ’24€10.20
€18.63
+82.7%
28.0%€24.74€10.08n/a9
Nov ’24€13.84
€26.18
+89.1%
25.5%€40.69€17.98€16.729
Oct ’24€16.37
€27.30
+66.8%
20.6%€40.33€21.57€16.949
Sep ’24€20.48
€26.85
+31.1%
21.7%€39.47€21.11€20.138
Aug ’24€19.77
€25.80
+30.5%
23.6%€39.10€19.10€20.098
Jul ’24€19.08
€27.75
+45.5%
22.0%€40.22€19.64€18.899
Jun ’24€18.00
€27.92
+55.1%
18.7%€39.01€20.87€19.639
May ’24€22.29
€28.74
+28.9%
17.1%€39.02€21.78€17.399
Apr ’24€21.62
€31.11
+43.9%
15.2%€40.66€22.69€17.3310
Mar ’24€22.74
€30.75
+35.2%
16.0%€40.21€22.44€16.159
Feb ’24€27.50
€30.98
+12.7%
17.5%€39.97€22.31€15.839
Jan ’24€26.05
€31.58
+21.2%
17.5%€40.74€22.74€13.019
Dec ’23€25.10
€31.52
+25.6%
15.6%€37.28€23.55€10.208
Nov ’23€26.59
€34.22
+28.7%
15.7%€40.67€24.80€13.848

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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