WuXi AppTec Valuation

Is WX8 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 WX8 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WX8 (€5.4) is trading below our estimate of fair value (€12.64)

Significantly Below Fair Value: WX8 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for WX8?

Key metric: As WX8 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WX8. This is calculated by dividing WX8's market cap by their current earnings.
What is WX8's PE Ratio?
PE Ratio17.8x
EarningsCN¥8.06b
Market CapCN¥140.71b

Price to Earnings Ratio vs Peers

How does WX8's PE Ratio compare to its peers?

The above table shows the PE ratio for WX8 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average65.2x
SRT3 Sartorius
188.8x36.4%€13.4b
1SXP SCHOTT Pharma KGaA
26.7x15.9%€4.0b
GXI Gerresheimer
22.3x21.7%€2.6b
MRK Merck KGaA
22.9x10.7%€61.6b
WX8 WuXi AppTec
17.8x15.4%€140.7b

Price-To-Earnings vs Peers: WX8 is good value based on its Price-To-Earnings Ratio (17.8x) compared to the peer average (65.2x).


Price to Earnings Ratio vs Industry

How does WX8's PE Ratio compare vs other companies in the European Life Sciences Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WX8 17.8xIndustry Avg. 37.1xNo. of Companies3PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WX8 is good value based on its Price-To-Earnings Ratio (17.8x) compared to the European Life Sciences industry average (37.4x).


Price to Earnings Ratio vs Fair Ratio

What is WX8'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.

WX8 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.8x
Fair PE Ratio22.3x

Price-To-Earnings vs Fair Ratio: WX8 is good value based on its Price-To-Earnings Ratio (17.8x) compared to the estimated Fair Price-To-Earnings Ratio (22.3x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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