Hikma Pharmaceuticals PLC

DB:H5P Stock Report

Market Cap: €6.2b

Hikma Pharmaceuticals Valuation

Is H5P 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 H5P when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€60.50
Fair Value
54.1% undervalued intrinsic discount
10
Number of Analysts

Below Fair Value: H5P (€27.8) is trading below our estimate of fair value (€60.5)

Significantly Below Fair Value: H5P is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for H5P?

Key metric: As H5P is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for H5P. This is calculated by dividing H5P's market cap by their current earnings.
What is H5P's PE Ratio?
PE Ratio22.8x
EarningsUS$285.00m
Market CapUS$6.49b

Price to Earnings Ratio vs Peers

How does H5P's PE Ratio compare to its peers?

The above table shows the PE ratio for H5P 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
22.9x17.3%€2.1b
MRK Merck KGaA
21.8x10.2%€58.9b
PSG PharmaSGP Holding
17.2x14.1%€323.7m
1SXP SCHOTT Pharma KGaA
25.8x15.3%€3.5b
H5P Hikma Pharmaceuticals
22.4x11.7%€5.1b

Price-To-Earnings vs Peers: H5P is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the peer average (22x).

Price to Earnings Ratio vs Industry

How does H5P's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
H5P 22.8xIndustry Avg. 22.9xNo. of Companies10PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: H5P is good value based on its Price-To-Earnings Ratio (22.4x) compared to the European Pharmaceuticals industry average (22.9x).

Price to Earnings Ratio vs Fair Ratio

What is H5P'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.

H5P PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.8x
Fair PE Ratio16.1x

Price-To-Earnings vs Fair Ratio: H5P is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).

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 H5P forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€27.80
€29.23
+5.1%
11.8%€37.32€23.54n/a10
Feb ’26€27.20
€28.57
+5.0%
12.8%€37.28€23.51n/a10
Jan ’26€23.80
€28.53
+19.9%
12.4%€37.17€24.10n/a10
Dec ’25€23.40
€28.12
+20.2%
12.1%€36.75€24.20n/a10
Nov ’25€22.40
€27.59
+23.2%
8.7%€32.44€23.57n/a10
Oct ’25€23.00
€27.22
+18.4%
10.7%€33.14€22.88n/a11
Sep ’25€23.80
€27.21
+14.3%
11.6%€33.70€23.27n/a11
Aug ’25€22.40
€26.50
+18.3%
13.2%€33.10€21.88n/a11
Jul ’25€22.20
€27.03
+21.8%
13.4%€33.82€22.35n/a11
Jun ’25€22.40
€26.67
+19.1%
13.3%€32.85€21.92n/a11
May ’25€22.60
€26.73
+18.3%
13.3%€32.95€21.91n/a11
Apr ’25€22.60
€26.87
+18.9%
12.6%€32.52€21.87n/a11
Mar ’25€22.80
€26.49
+16.2%
12.1%€32.16€21.76n/a11
Feb ’25€22.20
€25.69
+15.7%
12.3%€30.81€21.64€27.2011
Jan ’25€20.40
€25.38
+24.4%
12.1%€30.43€21.38€23.8011
Dec ’24€20.40
€26.34
+29.1%
11.8%€31.29€21.97€23.4011
Nov ’24€22.00
€27.36
+24.4%
10.6%€33.13€22.98€22.4011
Oct ’24€24.20
€27.74
+14.6%
10.5%€33.11€22.97€23.0011
Sep ’24€25.20
€26.42
+4.8%
11.5%€32.02€21.54€23.8012
Aug ’24€24.60
€24.17
-1.7%
13.1%€31.25€19.84€22.4012
Jul ’24€22.00
€24.30
+10.5%
14.0%€31.68€19.55€22.2012
Jun ’24€21.00
€24.00
+14.3%
14.9%€32.00€19.74€22.4011
May ’24€21.20
€23.02
+8.6%
15.8%€31.51€19.07€22.6011
Apr ’24€19.00
€23.20
+22.1%
15.1%€31.15€19.13€22.6011
Mar ’24€19.70
€22.84
+15.9%
15.1%€31.01€19.05€22.8012
Feb ’24€19.30
€22.15
+14.8%
17.4%€30.99€16.23€22.2012
Analyst Price Target
Consensus Narrative from 10 Analysts
€29.59
Fair Value
6.0% undervalued intrinsic discount
10
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/19 20:55
End of Day Share Price 2025/02/18 00:00
Earnings2024/06/30
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

Hikma Pharmaceuticals PLC is covered by 37 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Kamla SinghAlphaValue
Simon MatherBarclays
Emily FieldBarclays