Koninklijke Philips N.V.

BATS-CHIXE:PHIAA Stock Report

Market Cap: €20.2b

Koninklijke Philips Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Discounted Cash Flow
Simply Wall St
€54.82
Fair Value
60.5% undervalued intrinsic discount
16
Number of Analysts

Below Fair Value: PHIAA (€21.67) is trading below our estimate of fair value (€54.82)

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 profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PHIAA. This is calculated by dividing PHIAA's market cap by their current earnings.
What is PHIAA's PE Ratio?
PE Ratio85x
Earnings€238.00m
Market Cap€20.22b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PHIAA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.2x
SN. Smith & Nephew
30.2x16.56%UK£9.4b
NIOX NIOX Group
78.5x36.84%UK£266.9m
CTEC ConvaTec Group
36.8x16.92%UK£5.3b
EKF EKF Diagnostics Holdings
15.4xn/aUK£96.4m
PHIAA Koninklijke Philips
85x31.62%€20.2b

Price-To-Earnings vs Peers: PHIAA is expensive based on its Price-To-Earnings Ratio (85x) compared to the peer average (40.2x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies11PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PHIAA is expensive based on its Price-To-Earnings Ratio (85x) compared to the European Medical Equipment industry average (30.7x).

Price to Earnings Ratio vs Fair Ratio

What is PHIAA'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.

PHIAA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio85x
Fair PE Ratio83.8x

Price-To-Earnings vs Fair Ratio: PHIAA is expensive based on its Price-To-Earnings Ratio (85x) compared to the estimated Fair Price-To-Earnings Ratio (83.8x).

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€21.86
€25.73
+17.71%
17.21%€35.00€15.30n/a16
May ’26€22.36
€27.66
+23.71%
13.31%€35.00€22.60n/a16
Apr ’26n/a
€28.62
0%
12.57%€35.00€22.60n/a17
Mar ’26n/a
€28.68
0%
12.70%€35.00€22.60n/a17
Feb ’26€26.24
€28.66
+9.20%
15.69%€40.00€23.00n/a17
Jan ’26€24.48
€28.78
+17.53%
15.71%€40.00€23.00n/a17
Dec ’25€25.69
€28.72
+11.79%
15.84%€40.00€23.00n/a17
Nov ’25€24.33
€28.64
+17.70%
15.71%€40.00€23.00n/a17
Oct ’25€29.80
€27.91
-6.37%
13.44%€35.00€23.00n/a17
Sep ’25€27.33
€27.63
+1.06%
13.37%€35.00€22.24n/a17
Aug ’25€26.00
€26.64
+2.45%
13.66%€35.00€20.30n/a17
Jul ’25€23.51
€25.14
+6.95%
15.10%€32.88€19.34n/a17
Jun ’25n/a
€25.08
0%
15.30%€32.88€19.34n/a17
May ’25€24.27
€23.22
-4.31%
18.33%€32.88€16.92€22.3617
Apr ’25€17.80
€19.63
+10.29%
17.00%€28.04€15.47n/a17
Mar ’25€18.07
€19.91
+10.23%
16.72%€28.04€15.47n/a18
Feb ’25€19.14
€20.05
+4.72%
16.47%€28.04€15.47€26.2418
Jan ’25€20.38
€19.50
-4.35%
18.63%€28.04€14.50€24.4818
Dec ’24€18.11
€19.08
+5.35%
21.29%€28.04€13.25€25.6918
Nov ’24€17.27
€18.66
+8.06%
23.48%€28.04€11.02€24.3318
Oct ’24€18.50
€18.99
+2.67%
24.82%€29.01€10.55€29.8017
Sep ’24n/a
€18.94
0%
24.34%€29.01€10.55€27.3317
Aug ’24€18.24
€18.82
+3.18%
24.81%€29.01€10.55€26.0017
Jul ’24€19.27
€17.56
-8.86%
25.04%€29.01€10.55€23.5116
Jun ’24€17.15
€17.20
+0.27%
25.87%€29.01€10.55n/a16
May ’24€17.67
€16.33
-7.60%
27.43%€27.77€8.96€24.2717
AnalystConsensusTarget
Consensus Narrative from 16 Analysts
€25.72
Fair Value
15.7% undervalued intrinsic discount
16
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 Analysis2025/05/11 11:41
End of Day Share Price 2025/05/09 00:00
Earnings2025/03/31
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

Koninklijke Philips N.V. is covered by 48 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Wim GilleABN AMRO Bank N.V.
Fabrizio SpagnaAxia Financial Research
Óscar Rodriguez RoucoBanco de Sabadell. S.A.