Perrigo Company plc

DB:PIG Stock Report

Market Cap: €3.5b

Perrigo Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: PIG (€25.25) is trading below our estimate of fair value (€79.57)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for PIG. This is calculated by dividing PIG's market cap by their current revenue.
What is PIG's PS Ratio?
PS Ratio0.8x
SalesUS$4.39b
Market CapUS$3.67b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for PIG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.9x
DMP Dermapharm Holding
1.6x4.4%€1.9b
BAYN Bayer
0.4x1.1%€19.9b
PSG PharmaSGP Holding
2.7x7.0%€297.4m
MRK Merck KGaA
3x4.2%€62.3b
PIG Perrigo
0.8x3.4%€3.7b

Price-To-Sales vs Peers: PIG is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (1.9x).

Price to Sales Ratio vs Industry

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

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.3.2x3.4%
PIG Perrigo
 0.8x3.4%US$3.67b
PIG 0.8xIndustry Avg. 3.2xNo. of Companies33PS0612182430+
24 CompaniesEstimated GrowthMarket Cap
Industry Avg.3.2x20.4%
PIG Perrigo
 0.8x63.8%US$3.67b
No more companies

Price-To-Sales vs Industry: PIG is good value based on its Price-To-Sales Ratio (0.8x) compared to the European Pharmaceuticals industry average (3.4x).

Price to Sales Ratio vs Fair Ratio

What is PIG'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.

PIG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.8x
Fair PS Ratio2.1x

Price-To-Sales vs Fair Ratio: PIG is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).

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 PIG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€25.25
€33.35
+32.1%
11.2%€39.13€27.95n/a5
Nov ’25€23.58
€33.29
+41.2%
11.0%€38.84€27.74n/a5
Oct ’25€23.38
€32.94
+40.9%
12.0%€37.80€27.00n/a5
Sep ’25€25.80
€35.05
+35.8%
8.5%€38.48€32.07n/a4
Aug ’25€26.23
€35.37
+34.8%
7.9%€38.58€32.15n/a4
Jul ’25€24.34
€36.08
+48.2%
7.2%€39.10€33.52n/a4
Jun ’25€25.08
€36.72
+46.4%
5.8%€39.05€33.47n/a4
May ’25€30.49
€37.11
+21.7%
4.3%€39.24€34.57n/a5
Apr ’25€29.41
€35.76
+21.6%
7.4%€38.76€32.30n/a4
Mar ’25€24.19
€35.76
+47.8%
7.4%€38.76€32.30n/a4
Feb ’25€29.59
€40.98
+38.5%
8.6%€44.87€36.63n/a4
Jan ’25€29.21
€40.10
+37.3%
11.8%€45.17€34.11n/a4
Dec ’24€27.81
€40.10
+44.2%
11.8%€45.17€34.11n/a4
Nov ’24€26.54
€42.91
+61.7%
8.8%€46.05€37.59€23.583
Oct ’24€29.92
€42.91
+43.4%
8.8%€46.05€37.59€23.383
Sep ’24€32.20
€44.19
+37.2%
1.0%€44.64€43.73€25.802
Aug ’24€33.17
€43.68
+31.7%
4.3%€45.54€41.82€26.232
Jul ’24€30.68
€43.68
+42.4%
4.3%€45.54€41.82€24.342
Jun ’24€29.98
€43.68
+45.7%
4.3%€45.54€41.82€25.082
May ’24€33.33
€44.92
+34.8%
6.5%€49.01€40.84€30.494
Apr ’24€32.17
€45.68
+42.0%
8.0%€51.18€40.75€29.415
Mar ’24€34.71
€45.05
+29.8%
9.6%€50.94€39.62€24.194
Feb ’24€34.58
€45.05
+30.3%
9.6%€50.94€39.62€29.594
Jan ’24€31.68
€45.05
+42.2%
9.6%€50.94€39.62€29.214
Dec ’23€30.35
€49.20
+62.1%
9.0%€53.94€41.95€27.814
Nov ’23€40.46
€52.01
+28.5%
5.0%€54.53€48.48€26.544

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

Discover undervalued companies

Teva Pharmaceutical Industries

US$19.0b

Develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, Israel, and internationally.

TEV

US$15.85

7D

-1.6%

1Y

93.3%

Pharming Group

€485.0m

A biopharmaceutical company, develops and commercializes protein replacement therapies and precision medicines for the treatment of rare diseases in the United States, Europe, and internationally.

PHGN

€0.72

7D

-3.4%

1Y

-31.8%

Collegium Pharmaceutical

US$976.2m

A specialty pharmaceutical company, engages in the development and commercialization of medicines for pain management.

354

US$27.60

7D

-14.3%

1Y

20.0%