WuXi XDC Cayman Valuation

Is L74 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 L74 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: L74 (€2.9) is trading below our estimate of fair value (€4.83)

Significantly Below Fair Value: L74 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for L74?

Key metric: As L74 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for L74. This is calculated by dividing L74's market cap by their current earnings.
What is L74's PE Ratio?
PE Ratio46.1x
EarningsCN¥594.55m
Market CapCN¥27.38b

Price to Earnings Ratio vs Peers

How does L74's PE Ratio compare to its peers?

The above table shows the PE ratio for L74 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average65x
1SXP SCHOTT Pharma KGaA
26.7x15.9%€4.0b
GXI Gerresheimer
22.3x21.7%€2.6b
SRT3 Sartorius
188.8x36.4%€13.4b
DMP Dermapharm Holding
22.3x18.1%€2.0b
L74 WuXi XDC Cayman
46.1x27.5%€29.4b

Price-To-Earnings vs Peers: L74 is good value based on its Price-To-Earnings Ratio (46.1x) compared to the peer average (65x).


Price to Earnings Ratio vs Industry

How does L74's PE Ratio compare vs other companies in the European Life Sciences Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
L74 46.1xIndustry Avg. 37.1xNo. of Companies3PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: L74 is expensive based on its Price-To-Earnings Ratio (46.1x) compared to the European Life Sciences industry average (37.4x).


Price to Earnings Ratio vs Fair Ratio

What is L74'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.

L74 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio46.1x
Fair PE Ratio22.2x

Price-To-Earnings vs Fair Ratio: L74 is expensive based on its Price-To-Earnings Ratio (46.1x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).


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 L74 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.90
€3.71
+28.0%
19.2%€5.19€2.20n/a12
Nov ’25€2.58
€3.62
+40.3%
20.0%€5.11€2.14n/a12
Oct ’25€2.62
€3.50
+33.6%
19.7%€5.01€2.07n/a12
Sep ’25€2.24
€3.46
+54.3%
19.5%€4.95€2.06n/a12
Aug ’25€2.04
€3.63
+78.2%
19.9%€4.81€2.13n/a12
Jul ’25€1.92
€3.69
+92.3%
19.8%€4.85€2.15n/a12
Jun ’25€1.68
€3.67
+118.5%
19.8%€4.82€2.12n/a12
May ’25€2.52
€3.70
+46.8%
20.7%€4.88€2.15n/a11
Apr ’25€2.04
€3.51
+71.9%
22.6%€4.87€2.14n/a11
Mar ’25€2.08
€4.80
+131.0%
6.4%€5.66€4.42n/a11
Feb ’25€2.40
€4.74
+97.5%
6.4%€5.58€4.35n/a11
Jan ’25€3.52
€4.59
+30.4%
11.5%€5.54€3.30n/a10

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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