Simcere Pharmaceutical Group Limited

DB:S2P Stock Report

Market Cap: €2.5b

Simcere Pharmaceutical Group Valuation

Is S2P undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 S2P when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€0.66
Fair Value
54.7% overvalued intrinsic discount
5
Number of Analysts

Below Fair Value: S2P (€1.02) is trading above our estimate of fair value (€0.66)

Significantly Below Fair Value: S2P is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for S2P?

Key metric: As S2P is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for S2P. This is calculated by dividing S2P's market cap by their current earnings.
What is S2P's PE Ratio?
PE Ratio28.2x
EarningsCN¥733.17m
Market CapCN¥20.66b

Price to Earnings Ratio vs Peers

How does S2P's PE Ratio compare to its peers?

The above table shows the PE ratio for S2P vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average44x
DMP Dermapharm Holding
18.5x10.5%€2.1b
PSG PharmaSGP Holding
14.4x13.4%€274.0m
MRK Merck KGaA
19.4x7.9%€53.8b
APPH Apontis Pharma
123.8x56.4%€93.7m
S2P Simcere Pharmaceutical Group
28.2x22.7%€22.2b

Price-To-Earnings vs Peers: S2P is good value based on its Price-To-Earnings Ratio (28.2x) compared to the peer average (44.1x).

Price to Earnings Ratio vs Industry

How does S2P's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
S2P 28.2xIndustry Avg. 21.7xNo. of Companies10PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: S2P is expensive based on its Price-To-Earnings Ratio (28.2x) compared to the European Pharmaceuticals industry average (21.8x).

Price to Earnings Ratio vs Fair Ratio

What is S2P'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.

S2P PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.2x
Fair PE Ratio19.2x

Price-To-Earnings vs Fair Ratio: S2P is expensive based on its Price-To-Earnings Ratio (28.2x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).

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 S2P forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1.02
€1.12
+9.5%
6.4%€1.19€1.00n/a5
Apr ’26€0.96
€1.15
+19.9%
7.9%€1.26€1.05n/a5
Mar ’26€0.96
€1.12
+16.7%
12.7%€1.33€0.90n/a5
Feb ’26€0.84
€1.12
+33.3%
12.7%€1.33€0.90n/a5
Jan ’26€0.82
€1.11
+34.0%
12.9%€1.32€0.89n/a5
Dec ’25€0.83
€1.02
+21.6%
9.7%€1.18€0.88n/a6
Nov ’25€0.80
€1.02
+27.0%
9.7%€1.18€0.88n/a6
Oct ’25€0.78
€0.97
+24.8%
10.4%€1.15€0.86n/a6
Sep ’25€0.67
€0.96
+43.6%
11.1%€1.16€0.85n/a6
Aug ’25€0.60
€1.01
+67.1%
8.7%€1.17€0.90n/a6
Jul ’25€0.67
€1.03
+55.6%
8.6%€1.20€0.92n/a7
Jun ’25€0.67
€1.03
+54.4%
8.6%€1.20€0.92n/a7
May ’25€0.64
€1.03
+61.7%
8.6%€1.20€0.92€0.987
Apr ’25€0.61
€1.00
+62.6%
6.3%€1.09€0.91€0.966
Mar ’25€0.64
€1.22
+90.7%
14.3%€1.54€0.95€0.967
Feb ’25€0.60
€1.23
+103.7%
14.3%€1.53€0.95€0.847
Jan ’25€0.77
€1.26
+65.3%
13.3%€1.55€0.96€0.827
Dec ’24€0.84
€1.26
+48.7%
12.9%€1.53€0.97€0.837
Nov ’24€0.82
€1.29
+57.1%
13.1%€1.56€0.98€0.807
Oct ’24€0.76
€1.27
+67.8%
14.1%€1.54€0.97€0.786
Sep ’24€0.70
€1.25
+76.7%
14.1%€1.51€0.95€0.676
Aug ’24€0.86
€1.58
+83.0%
19.2%€2.21€1.33€0.606
Jul ’24€0.89
€1.60
+80.3%
18.6%€2.22€1.34€0.676
Jun ’24€0.89
€1.65
+85.5%
18.7%€2.29€1.38€0.676
May ’24€1.07
€1.68
+57.3%
18.4%€2.32€1.40€0.646
AnalystConsensusTarget
Consensus Narrative from 5 Analysts
€1.11
Fair Value
8.4% undervalued intrinsic discount
5
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 Analysis2025/05/06 18:06
End of Day Share Price 2025/05/06 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

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

Simcere Pharmaceutical Group Limited is covered by 17 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Shaojing TongBofA Global Research
Bo YuChina International Capital Corporation Limited
Shitong HanCitic Securities Co., Ltd.