Koninklijke Philips N.V.

BATS-CHIXE:PHIAA Stock Report

Market Cap: €22.9b

Koninklijke Philips Valuation

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

Below Fair Value: PHIAA (€24.46) is trading below our estimate of fair value (€58.5)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for PHIAA. This is calculated by dividing PHIAA's market cap by their current revenue.
What is PHIAA's PS Ratio?
PS Ratio1.3x
Sales€18.04b
Market Cap€22.94b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for PHIAA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.4x
SN. Smith & Nephew
1.9x5.0%UK£8.6b
NIOX NIOX Group
6.7x12.1%UK£260.3m
CTEC ConvaTec Group
2.8x5.7%UK£4.9b
EKF EKF Diagnostics Holdings
2.3x7.6%UK£116.6m
PHIAA Koninklijke Philips
1.3x4.6%€22.9b

Price-To-Sales vs Peers: PHIAA is good value based on its Price-To-Sales Ratio (1.3x) compared to the peer average (3.4x).

Price to Sales Ratio vs Industry

How does PHIAA's PS Ratio compare vs other companies in the GB Medical Equipment Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
SPEC INSPECS Group
0.3x5.5%US$74.34m
YGEN Yourgene Health
0.6xn/aUS$20.48m
IHC Inspiration Healthcare Group
0.4x13.6%US$17.80m
SUN Surgical Innovations Group
0.4xn/aUS$6.47m
No more companies available in this PS range
No. of Companies4PS02.44.87.29.612+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: PHIAA is good value based on its Price-To-Sales Ratio (1.3x) compared to the UK Medical Equipment industry average (3.1x).

Price to Sales Ratio vs Fair Ratio

What is PHIAA'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.

PHIAA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio2.6x

Price-To-Sales vs Fair Ratio: PHIAA is good value based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (2.6x).

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 PHIAA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€24.46
€28.58
+16.9%
15.9%€40.00€23.00n/a17
Nov ’25€24.34
€28.64
+17.7%
15.7%€40.00€23.00n/a17
Oct ’25€29.81
€27.86
-6.5%
13.6%€35.00€23.00n/a17
Sep ’25€27.34
€27.63
+1.1%
13.4%€35.00€22.24n/a17
Aug ’25€26.01
€26.64
+2.5%
13.7%€35.00€20.30n/a17
Jul ’25€23.51
€25.14
+6.9%
15.1%€32.88€19.34n/a17
Jun ’25n/a
€25.08
0%
15.3%€32.88€19.34n/a17
May ’25€24.27
€23.22
-4.3%
18.3%€32.88€16.92n/a17
Apr ’25€17.80
€19.63
+10.3%
17.0%€28.04€15.47n/a17
Mar ’25€18.07
€19.91
+10.2%
16.7%€28.04€15.47n/a18
Feb ’25€19.14
€20.05
+4.7%
16.5%€28.04€15.47n/a18
Jan ’25€20.38
€19.50
-4.3%
18.6%€28.04€14.50n/a18
Dec ’24€18.11
€19.08
+5.4%
21.3%€28.04€13.25n/a18
Nov ’24€17.27
€18.66
+8.1%
23.5%€28.04€11.02€24.3418
Oct ’24€18.50
€18.99
+2.7%
24.8%€29.01€10.55€29.8117
Sep ’24n/a
€18.94
0%
24.3%€29.01€10.55€27.3417
Aug ’24€18.24
€18.82
+3.2%
24.8%€29.01€10.55€26.0117
Jul ’24€19.27
€17.56
-8.9%
25.0%€29.01€10.55€23.5116
Jun ’24€17.15
€17.20
+0.3%
25.9%€29.01€10.55n/a16
May ’24€17.67
€16.33
-7.6%
27.4%€27.77€8.96€24.2717
Apr ’24€15.63
€14.64
-6.3%
32.7%€27.77€8.33€17.8017
Mar ’24€14.43
€14.57
+1.0%
33.8%€27.77€8.33€18.0716
Feb ’24€14.87
€14.57
-2.0%
33.4%€27.77€8.33€19.1416
Jan ’24€12.97
€14.64
+12.9%
33.2%€27.77€8.96€20.3816
Dec ’23€13.16
€14.72
+11.9%
34.1%€27.77€8.96€18.1115
Nov ’23€11.82
€14.70
+24.3%
34.2%€27.77€8.96€17.2715

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

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