H. Lundbeck A/S

DB:LDBA Stock Report

Market Cap: €5.7b

H. Lundbeck Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: LDBA (€5.87) is trading below our estimate of fair value (€21.65)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LDBA. This is calculated by dividing LDBA's market cap by their current earnings.
What is LDBA's PE Ratio?
PE Ratio16.5x
EarningsDKK 2.69b
Market CapDKK 42.66b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LDBA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.5x
DMP Dermapharm Holding
20.7x18.1%€1.9b
MRK Merck KGaA
23.1x10.6%€62.3b
PSG PharmaSGP Holding
16.3x14.6%€297.4m
2FJ0 Pierrel
29.9xn/a€92.8m
LDBA H. Lundbeck
16.5x8.6%€42.7b

Price-To-Earnings vs Peers: LDBA is good value based on its Price-To-Earnings Ratio (16.5x) compared to the peer average (22.5x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
LDBA 16.5xIndustry Avg. 20.7xNo. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LDBA is good value based on its Price-To-Earnings Ratio (16.5x) compared to the European Pharmaceuticals industry average (20.7x).

Price to Earnings Ratio vs Fair Ratio

What is LDBA'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.

LDBA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.5x
Fair PE Ratio16.4x

Price-To-Earnings vs Fair Ratio: LDBA is expensive based on its Price-To-Earnings Ratio (16.5x) compared to the estimated Fair Price-To-Earnings Ratio (16.4x).

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 LDBA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€5.87
€6.72
+14.6%
14.0%€9.25€5.70n/a11
Nov ’25€5.93
€6.56
+10.7%
9.2%€7.64€5.70n/a11
Oct ’25€5.65
€6.20
+9.8%
12.5%€7.64€4.69n/a12
Sep ’25€6.30
€6.10
-3.0%
12.0%€7.64€4.69n/a12
Aug ’25€5.78
€5.48
-5.2%
12.5%€7.37€4.69n/a12
Jul ’25€5.08
€5.36
+5.5%
10.9%€6.84€4.69n/a12
Jun ’25€5.03
€5.36
+6.5%
10.9%€6.84€4.69n/a12
May ’25€4.51
€5.19
+15.0%
12.3%€6.70€4.42n/a12
Apr ’25€4.38
€5.20
+18.8%
12.2%€6.71€4.43n/a12
Mar ’25€4.37
€5.14
+17.8%
12.5%€6.71€4.43n/a13
Feb ’25€4.51
€5.13
+13.9%
11.0%€6.44€4.43n/a13
Jan ’25€4.33
€5.17
+19.4%
10.4%€6.44€4.43n/a13
Dec ’24€4.39
€5.20
+18.6%
10.8%€6.44€4.29n/a12
Nov ’24€4.92
€5.23
+6.4%
11.1%€6.30€4.29€5.9311
Oct ’24€5.07
€5.07
+0.07%
11.0%€6.31€4.29€5.6511
Sep ’24€4.67
€5.01
+7.3%
12.0%€6.31€4.03€6.3012
Aug ’24€4.48
€4.98
+11.2%
10.8%€5.90€4.03€5.7812
Jul ’24€4.31
€4.95
+14.9%
12.5%€5.91€4.03€5.0812
Jun ’24€4.89
€4.95
+1.3%
12.5%€5.91€4.03€5.0312
May ’24€4.74
€4.65
-2.0%
15.6%€5.90€4.02€4.5112
Apr ’24€4.22
€4.53
+7.3%
14.3%€5.71€3.63€4.3812
Mar ’24€3.95
€4.49
+13.5%
14.2%€5.71€3.63€4.3713
Feb ’24€3.36
€4.46
+32.9%
15.2%€5.78€3.63€4.5113
Jan ’24€3.45
€4.74
+37.5%
18.6%€6.18€3.63€4.3313
Dec ’23€3.49
€4.87
+39.6%
16.7%€6.19€3.63€4.3913
Nov ’23€3.68
€5.06
+37.7%
15.5%€6.18€3.63€4.9213

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

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