Teva Pharmaceutical Industries Limited

DB:TEV Stock Report

Market Cap: €18.0b

Teva Pharmaceutical Industries Valuation

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

Below Fair Value: TEV (€15.85) is trading below our estimate of fair value (€71.08)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for TEV. This is calculated by dividing TEV's market cap by their current revenue.
What is TEV's PS Ratio?
PS Ratio1.1x
SalesUS$16.77b
Market CapUS$18.98b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TEV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.9x
BAYN Bayer
0.4x1.1%€19.9b
MRK Merck KGaA
3x4.2%€62.3b
DMP Dermapharm Holding
1.6x4.4%€1.9b
PSG PharmaSGP Holding
2.7x7.0%€297.4m
TEV Teva Pharmaceutical Industries
1.1x2.5%€19.0b

Price-To-Sales vs Peers: TEV is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (1.9x).

Price to Sales Ratio vs Industry

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

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.3.2x3.4%
TEV Teva Pharmaceutical Industries
 1.1x2.5%US$18.98b
TEV 1.1xIndustry Avg. 3.2xNo. of Companies33PS0612182430+
24 CompaniesEstimated GrowthMarket Cap
Industry Avg.3.2x20.4%
TEV Teva Pharmaceutical Industries
 1.1x65.8%US$18.98b
No more companies

Price-To-Sales vs Industry: TEV is good value based on its Price-To-Sales Ratio (1.1x) compared to the European Pharmaceuticals industry average (3.4x).

Price to Sales Ratio vs Fair Ratio

What is TEV'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.

TEV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ratio3.5x

Price-To-Sales vs Fair Ratio: TEV is good value based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (3.5x).

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 TEV forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€15.85
€21.27
+34.2%
10.8%€24.73€17.12n/a9
Nov ’25€16.95
€20.22
+19.3%
13.3%€24.10€15.76n/a9
Oct ’25€16.00
€19.19
+19.9%
14.2%€23.47€14.44n/a9
Sep ’25€16.90
€18.49
+9.4%
16.2%€21.61€13.38n/a9
Aug ’25€16.20
€18.62
+15.0%
15.8%€22.24€13.77n/a9
Jul ’25€14.80
€17.51
+18.3%
16.6%€21.49€13.55n/a10
Jun ’25€15.20
€16.47
+8.4%
15.1%€20.31€13.39n/a10
May ’25€13.10
€14.67
+12.0%
15.0%€17.71€10.25n/a10
Apr ’25€13.05
€13.87
+6.3%
15.5%€17.39€10.07n/a10
Mar ’25€12.45
€13.63
+9.5%
17.5%€17.56€10.17n/a10
Feb ’25€11.10
€12.19
+9.8%
14.6%€14.72€9.20n/a10
Jan ’25€9.16
€10.28
+12.3%
16.5%€12.82€7.33n/a11
Dec ’24€9.00
€10.08
+12.0%
16.7%€12.78€7.30n/a10
Nov ’24€8.08
€10.41
+28.9%
15.6%€13.32€7.61€16.9510
Oct ’24€9.50
€10.31
+8.5%
15.6%€13.24€7.57€16.0010
Sep ’24€9.02
€9.27
+2.8%
17.4%€12.72€7.27€16.9010
Aug ’24€7.46
€8.73
+17.0%
17.4%€12.47€7.13€16.2010
Jul ’24€6.86
€9.00
+31.1%
19.6%€12.88€6.44€14.809
Jun ’24€6.72
€9.07
+35.0%
19.3%€13.06€6.53€15.209
May ’24€8.04
€9.27
+15.3%
22.5%€12.74€6.37€13.108
Apr ’24€8.02
€9.31
+16.1%
21.1%€12.89€6.44€13.059
Mar ’24€9.22
€9.50
+3.1%
20.2%€13.11€6.55€12.4510
Feb ’24€9.56
€9.23
-3.5%
20.5%€12.00€6.46€11.1010
Jan ’24€8.56
€9.06
+5.8%
17.6%€12.26€6.60€9.1610
Dec ’23€8.22
€9.33
+13.4%
17.3%€12.50€6.73€9.0010
Nov ’23€9.10
€10.44
+14.8%
12.3%€13.18€8.11€8.0810

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

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