Organon & Co.

DB:7XP Stock Report

Market Cap: €3.7b

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.

Discounted Cash Flow
Simply Wall St
€103.85
Fair Value
86.3% undervalued intrinsic discount
8
Number of Analysts

Below Fair Value: 7XP (€14.28) is trading below our estimate of fair value (€103.85)

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 Ratio2.9x
EarningsUS$1.30b
Market CapUS$3.83b

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 Average22x
DMP Dermapharm Holding
23.2x17.3%€2.1b
MRK Merck KGaA
22.9x10.2%€61.8b
PSG PharmaSGP Holding
17.7x14.1%€333.3m
1SXP SCHOTT Pharma KGaA
24.1x13.9%€3.6b
7XP Organon
2.9x-8.3%€3.8b

Price-To-Earnings vs Peers: 7XP is good value based on its Price-To-Earnings Ratio (2.9x) compared to the peer average (22x).

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.22.4x18.8%
7XP Organon
 2.9x-8.3%US$3.83b
7XP 2.9xIndustry Avg. 22.4xNo. of Companies9PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
Industry Avg.22.4x18.8%
7XP Organon
 2.9x-8.3%US$3.83b
No more companies

Price-To-Earnings vs Industry: 7XP is good value based on its Price-To-Earnings Ratio (2.9x) compared to the European Pharmaceuticals industry average (22.4x).

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 Ratio2.9x
Fair PE Ratio10.5x

Price-To-Earnings vs Fair Ratio: 7XP is good value based on its Price-To-Earnings Ratio (2.9x) compared to the estimated Fair Price-To-Earnings Ratio (10.5x).

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€14.28
€20.22
+41.6%
21.6%€27.92€14.44n/a8
Jan ’26€14.35
€21.46
+49.6%
21.1%€27.97€14.47n/a8
Dec ’25€14.91
€21.25
+42.5%
19.7%€27.55€16.15n/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€10.96€15.029
Jan ’25€13.01
€18.63
+43.3%
28.0%€24.74€10.08€14.359
Dec ’24€10.20
€18.63
+82.7%
28.0%€24.74€10.08€14.919
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
Analyst Price Target
Consensus Narrative from 8 Analysts
€20.14
Fair Value
29.1% undervalued intrinsic discount
8
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/07 09:52
End of Day Share Price 2025/02/06 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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

Organon & Co. is covered by 16 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Balaji PrasadBarclays
Balaji PrasadBarclays
Navann Ty DietschiBNP Paribas Exane