Sumitomo Pharma Co., Ltd.

DB:DPM Stock Report

Market Cap: €1.5b

Sumitomo Pharma Valuation

Is DPM 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: DPM (€3.74) is trading below our estimate of fair value (€6.8)

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

Key Valuation Metric

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

Key metric: As DPM is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DPM. This is calculated by dividing DPM's market cap by their current revenue.
What is DPM's PS Ratio?
PS Ratio0.7x
SalesJP¥342.67b
Market CapJP¥244.73b

Price to Sales Ratio vs Peers

How does DPM's PS Ratio compare to its peers?

The above table shows the PS ratio for DPM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.7x
DMP Dermapharm Holding
1.7x4.1%€2.0b
PSG PharmaSGP Holding
2.6x7.7%€287.8m
BAYN Bayer
0.4x1.0%€19.6b
APPH Apontis Pharma
2x17.3%€80.3m
DPM Sumitomo Pharma
0.7x4.1%€244.7b

Price-To-Sales vs Peers: DPM is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

How does DPM's PS Ratio compare vs other companies in the European Pharmaceuticals Industry?

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.2.9x3.4%
DPM Sumitomo Pharma
 0.7x4.1%US$1.59b
DPM 0.7xIndustry Avg. 2.9xNo. of Companies35PS0612182430+
24 CompaniesEstimated GrowthMarket Cap
Industry Avg.2.9x21.6%
DPM Sumitomo Pharma
 0.7x89.5%US$1.59b
No more companies

Price-To-Sales vs Industry: DPM is good value based on its Price-To-Sales Ratio (0.7x) compared to the European Pharmaceuticals industry average (2.9x).

Price to Sales Ratio vs Fair Ratio

What is DPM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DPM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio2.3x

Price-To-Sales vs Fair Ratio: DPM is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (2.3x).

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 DPM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€3.74
€3.30
-11.9%
23.3%€4.63€2.28n/a8
Nov ’25€3.24
€3.27
+0.8%
23.5%€4.60€2.27n/a8
Oct ’25€3.66
€3.11
-15.2%
24.6%€4.65€2.29n/a8
Sep ’25€4.08
€3.11
-23.9%
24.6%€4.65€2.29n/a8
Aug ’25€2.84
€1.98
-30.1%
25.1%€2.58€1.14n/a8
Jul ’25€2.22
€1.95
-12.0%
25.1%€2.54€1.12n/a8
Jun ’25€1.77
€1.92
+8.6%
22.7%€2.47€1.12n/a8
May ’25€2.34
€2.03
-13.4%
18.5%€2.55€1.52n/a8
Apr ’25€2.38
€2.49
+4.5%
47.8%€5.34€1.54n/a8
Mar ’25€2.18
€2.54
+16.4%
46.0%€5.35€1.54n/a8
Feb ’25€2.14
€3.00
+40.4%
36.3%€5.47€1.57n/a8
Jan ’25€2.92
€3.09
+5.9%
34.9%€5.56€1.66n/a8
Dec ’24€2.88
€3.03
+5.1%
33.5%€5.37€1.61n/a8
Nov ’24€2.66
€3.18
+19.6%
28.6%€5.45€2.44€3.248
Oct ’24€3.34
€3.23
-3.3%
30.4%€5.51€2.47€3.667
Sep ’24€3.20
€3.34
+4.4%
29.7%€5.45€2.44€4.088
Aug ’24€3.32
€4.37
+31.7%
23.3%€6.10€3.30€2.848
Jul ’24€4.00
€5.13
+28.2%
23.0%€6.66€3.53€2.227
Jun ’24€4.14
€5.68
+37.2%
21.1%€7.34€3.53€1.777
May ’24€5.60
€6.31
+12.6%
11.4%€7.29€4.97€2.347
Apr ’24€5.45
€6.37
+16.9%
11.6%€7.62€5.19€2.387
Mar ’24€5.65
€6.57
+16.2%
10.7%€7.71€5.25€2.187
Feb ’24€6.05
€7.21
+19.1%
11.0%€8.50€6.16€2.147
Jan ’24€6.95
€7.26
+4.4%
10.5%€8.44€6.12€2.927
Dec ’23€7.30
€7.26
-0.6%
10.5%€8.44€6.12€2.887
Nov ’23€6.65
€7.26
+9.1%
10.5%€8.44€6.12€2.667

Analyst Forecast: Target price is lower than the current share price.

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