Alcon Inc.

LSE:0A0D Stock Report

Market Cap: CHF 37.7b

Alcon Valuation

Is 0A0D undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 0A0D when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0A0D (CHF76.84) is trading below our estimate of fair value (CHF100.86)

Significantly Below Fair Value: 0A0D is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0A0D?

Key metric: As 0A0D is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0A0D. This is calculated by dividing 0A0D's market cap by their current earnings.
What is 0A0D's PE Ratio?
PE Ratio36.6x
EarningsUS$1.16b
Market CapUS$42.49b

Price to Earnings Ratio vs Peers

How does 0A0D's PE Ratio compare to its peers?

The above table shows the PE ratio for 0A0D vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.2x
CTEC ConvaTec Group
39.8x20.5%UK£4.9b
AMS Advanced Medical Solutions Group
41.1x23.0%UK£457.3m
SN. Smith & Nephew
35.3x22.5%UK£8.6b
TSTL Tristel
32.6x17.5%UK£211.8m
0A0D Alcon
36.6x9.8%CHF 37.7b

Price-To-Earnings vs Peers: 0A0D is good value based on its Price-To-Earnings Ratio (36.6x) compared to the peer average (37.2x).

Price to Earnings Ratio vs Industry

How does 0A0D's PE Ratio compare vs other companies in the European Medical Equipment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0A0D 36.6xIndustry Avg. 29.7xNo. of Companies8PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0A0D is expensive based on its Price-To-Earnings Ratio (36.6x) compared to the European Medical Equipment industry average (29.5x).

Price to Earnings Ratio vs Fair Ratio

What is 0A0D'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.

0A0D PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.6x
Fair PE Ratio38.1x

Price-To-Earnings vs Fair Ratio: 0A0D is good value based on its Price-To-Earnings Ratio (36.6x) compared to the estimated Fair Price-To-Earnings Ratio (38.1x).

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 0A0D forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 76.84
CHF 87.78
+14.2%
10.5%CHF 101.47CHF 64.21n/a16
Nov ’25CHF 80.20
CHF 88.67
+10.6%
10.2%CHF 100.60CHF 63.32n/a15
Oct ’25CHF 84.96
CHF 86.13
+1.4%
11.7%CHF 99.98CHF 61.59n/a15
Sep ’25CHF 82.84
CHF 84.06
+1.5%
10.2%CHF 99.52CHF 61.83n/a15
Aug ’25CHF 83.38
CHF 83.99
+0.7%
12.0%CHF 103.12CHF 60.26n/a15
Jul ’25CHF 80.18
CHF 84.16
+5.0%
10.3%CHF 90.96CHF 61.45n/a15
Jun ’25CHF 80.62
CHF 84.27
+4.5%
10.2%CHF 91.35CHF 61.72n/a16
May ’25CHF 71.10
CHF 84.69
+19.1%
9.5%CHF 92.19CHF 64.16n/a16
Apr ’25CHF 74.75
CHF 84.13
+12.5%
10.0%CHF 91.61CHF 63.76n/a16
Mar ’25CHF 75.62
CHF 80.16
+6.0%
11.4%CHF 90.46CHF 59.22n/a16
Feb ’25CHF 64.95
CHF 78.50
+20.9%
9.9%CHF 90.11CHF 57.44n/a15
Jan ’25CHF 65.22
CHF 76.88
+17.9%
11.3%CHF 89.97CHF 56.26n/a12
Dec ’24CHF 65.95
CHF 79.41
+20.4%
9.1%CHF 91.06CHF 64.51n/a14
Nov ’24CHF 65.24
CHF 83.82
+28.5%
8.4%CHF 93.25CHF 65.97CHF 80.2013
Oct ’24CHF 71.37
CHF 86.99
+21.9%
6.0%CHF 94.76CHF 77.68CHF 84.9612
Sep ’24CHF 73.20
CHF 84.38
+15.3%
6.2%CHF 91.82CHF 73.49CHF 82.8413
Aug ’24CHF 74.11
CHF 81.56
+10.0%
7.9%CHF 90.04CHF 68.76CHF 83.3812
Jul ’24CHF 74.63
CHF 83.18
+11.5%
6.9%CHF 90.13CHF 71.87CHF 80.1812
Jun ’24CHF 70.98
CHF 83.18
+17.2%
6.9%CHF 90.13CHF 71.87CHF 80.6212
May ’24CHF 64.17
CHF 78.12
+21.7%
9.1%CHF 86.47CHF 62.61CHF 71.1012
Apr ’24CHF 64.71
CHF 78.86
+21.9%
9.3%CHF 88.21CHF 63.87CHF 74.7511
Mar ’24CHF 64.66
CHF 79.56
+23.0%
8.9%CHF 88.11CHF 63.88CHF 75.6211
Feb ’24CHF 68.84
CHF 76.95
+11.8%
11.2%CHF 85.39CHF 58.57CHF 64.9511
Jan ’24CHF 63.26
CHF 76.01
+20.2%
11.2%CHF 84.90CHF 58.94CHF 65.2210
Dec ’23CHF 65.41
CHF 79.53
+21.6%
9.4%CHF 87.44CHF 60.70CHF 65.958
Nov ’23CHF 61.65
CHF 84.19
+36.5%
5.1%CHF 89.51CHF 74.70CHF 65.248

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

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