Daiichi Sankyo Company, Limited

DB:D4S Stock Report

Market Cap: €50.7b

Daiichi Sankyo Company Valuation

Is D4S undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 D4S when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: D4S (€26.41) is trading below our estimate of fair value (€46.54)

Significantly Below Fair Value: D4S is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for D4S?

Key metric: As D4S is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for D4S. This is calculated by dividing D4S's market cap by their current earnings.
What is D4S's PE Ratio?
PE Ratio32.7x
EarningsJP¥250.40b
Market CapJP¥8.20t

Price to Earnings Ratio vs Peers

How does D4S's PE Ratio compare to its peers?

The above table shows the PE ratio for D4S vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.8x
MRK Merck KGaA
22.6x10.3%€61.0b
DMP Dermapharm Holding
24.5x17.3%€2.2b
PSG PharmaSGP Holding
15.8x13.6%€299.8m
SUNPHARMA Sun Pharmaceutical Industries
40.1x12.7%₹4.5t
D4S Daiichi Sankyo Company
32.7x18.4%€8.2t

Price-To-Earnings vs Peers: D4S is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the peer average (25.9x).

Price to Earnings Ratio vs Industry

How does D4S's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
D4S 32.7xIndustry Avg. 19.7xNo. of Companies11PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: D4S is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the European Pharmaceuticals industry average (19.6x).

Price to Earnings Ratio vs Fair Ratio

What is D4S'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.

D4S PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.7x
Fair PE Ratio25x

Price-To-Earnings vs Fair Ratio: D4S is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the estimated Fair Price-To-Earnings Ratio (25x).

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 D4S forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€26.41
€38.75
+46.7%
8.7%€46.50€33.65n/a18
Dec ’25€29.48
€39.31
+33.4%
8.7%€47.13€34.11n/a18
Nov ’25€30.10
€39.32
+30.6%
7.1%€45.99€33.28n/a18
Oct ’25€28.86
€41.34
+43.2%
7.4%€48.03€34.76n/a17
Sep ’25€37.42
€40.84
+9.1%
10.0%€52.66€33.78n/a16
Aug ’25€35.90
€40.50
+12.8%
9.9%€53.05€34.03n/a16
Jul ’25€30.86
€36.38
+17.9%
8.0%€40.05€28.86n/a15
Jun ’25€32.23
€35.08
+8.9%
12.1%€39.92€24.65n/a15
May ’25€32.36
€33.59
+3.8%
9.4%€37.30€24.87n/a15
Apr ’25€29.79
€34.68
+16.4%
9.9%€38.88€25.92n/a15
Mar ’25€30.30
€34.68
+14.5%
9.9%€38.88€25.92n/a15
Feb ’25€28.89
€33.83
+17.1%
10.0%€38.99€26.41n/a15
Jan ’25€24.39
€34.00
+39.4%
10.4%€39.55€26.79€26.0415
Dec ’24€25.06
€32.77
+30.8%
11.4%€38.36€25.99€29.4815
Nov ’24€25.06
€32.25
+28.7%
14.9%€40.52€21.82€30.1015
Oct ’24€25.44
€33.16
+30.4%
15.2%€41.14€22.15€28.8614
Sep ’24€27.58
€34.24
+24.1%
14.1%€42.51€22.20€37.4216
Aug ’24€27.80
€34.34
+23.5%
13.7%€42.83€22.37€35.9016
Jul ’24€28.50
€36.68
+28.7%
11.3%€44.61€26.63€30.8616
Jun ’24€31.60
€36.73
+16.2%
12.1%€44.86€26.78€32.2317
May ’24€30.70
€38.23
+24.5%
11.7%€47.42€31.16€32.3616
Apr ’24€32.78
€39.37
+20.1%
14.0%€49.69€29.81€29.7915
Mar ’24€28.76
€38.73
+34.7%
14.8%€48.64€29.18€30.3015
Feb ’24€28.49
€39.33
+38.1%
14.8%€49.46€29.68€28.8915
Jan ’24€29.70
€38.95
+31.1%
16.3%€49.06€28.04€24.3914

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/02 16:55
End of Day Share Price 2025/01/02 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

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 here.

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 .

Analyst Sources

Daiichi Sankyo Company, Limited is covered by 32 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Atsushi SekiBarclays
null nullBNP Paribas Securities (Asia)
Koichi MameganoBofA Global Research