Hikma Pharmaceuticals PLC

BATS-CHIXE:HIKL Stock Report

Market Cap: UK£4.0b

Hikma Pharmaceuticals Valuation

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

Below Fair Value: HIKL (£17.96) is trading below our estimate of fair value (£37.43)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HIKL. This is calculated by dividing HIKL's market cap by their current earnings.
What is HIKL's PE Ratio?
PE Ratio17.7x
EarningsUS$285.00m
Market CapUS$5.04b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HIKL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.6x
GSK GSK
21.1x22.4%UK£55.2b
ANCR Animalcare Group
30.9x15.8%UK£143.1m
AZN AstraZeneca
30.2x18.0%UK£159.6b
EAH ECO Animal Health Group
44x34.2%UK£46.8m
HIKL Hikma Pharmaceuticals
17.7x11.2%UK£4.0b

Price-To-Earnings vs Peers: HIKL is good value based on its Price-To-Earnings Ratio (17.7x) compared to the peer average (32.2x).

Price to Earnings Ratio vs Industry

How does HIKL's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
No. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HIKL is good value based on its Price-To-Earnings Ratio (17.7x) compared to the European Pharmaceuticals industry average (21.2x).

Price to Earnings Ratio vs Fair Ratio

What is HIKL'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.

HIKL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.7x
Fair PE Ratio23.6x

Price-To-Earnings vs Fair Ratio: HIKL is good value based on its Price-To-Earnings Ratio (17.7x) compared to the estimated Fair Price-To-Earnings Ratio (23.6x).

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 HIKL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£17.96
UK£23.14
+28.8%
9.2%UK£27.42UK£19.69n/a10
Nov ’25UK£18.83
UK£23.12
+22.8%
8.7%UK£27.21UK£19.69n/a10
Oct ’25UK£19.14
UK£22.86
+19.4%
10.7%UK£27.85UK£19.16n/a11
Sep ’25UK£19.98
UK£23.22
+16.2%
11.6%UK£28.77UK£19.79n/a11
Aug ’25UK£19.00
UK£22.28
+17.3%
13.2%UK£27.82UK£18.39n/a11
Jul ’25UK£18.71
UK£22.89
+22.4%
13.4%UK£28.64UK£18.93n/a11
Jun ’25UK£19.35
UK£22.94
+18.5%
13.3%UK£28.24UK£18.85n/a11
May ’25UK£19.22
UK£22.82
+18.7%
13.3%UK£28.13UK£18.70n/a11
Apr ’25UK£19.25
UK£22.95
+19.3%
12.6%UK£27.77UK£18.68n/a11
Mar ’25UK£19.37
UK£22.68
+17.1%
12.1%UK£27.53UK£18.63n/a11
Feb ’25UK£19.09
UK£21.98
+15.2%
12.3%UK£26.37UK£18.52n/a11
Jan ’25UK£17.75
UK£22.01
+24.0%
12.1%UK£26.39UK£18.53n/a11
Dec ’24UK£17.60
UK£22.96
+30.4%
11.8%UK£27.27UK£19.16n/a11
Nov ’24UK£19.24
UK£23.83
+23.9%
10.6%UK£28.85UK£20.02UK£18.8311
Oct ’24UK£20.93
UK£24.02
+14.8%
10.5%UK£28.67UK£19.89UK£19.1411
Sep ’24UK£21.78
UK£22.69
+4.2%
11.5%UK£27.50UK£18.50UK£19.9812
Aug ’24UK£21.16
UK£20.86
-1.4%
13.1%UK£26.97UK£17.12UK£19.0012
Jul ’24UK£18.91
UK£20.88
+10.5%
14.0%UK£27.22UK£16.80UK£18.7112
Jun ’24UK£17.97
UK£20.82
+15.9%
14.9%UK£27.77UK£17.13UK£19.3511
May ’24UK£18.51
UK£20.21
+9.2%
15.8%UK£27.68UK£16.75UK£19.2211
Apr ’24UK£16.74
UK£20.32
+21.4%
15.1%UK£27.29UK£16.76UK£19.2511
Mar ’24UK£17.41
UK£20.26
+16.4%
15.1%UK£27.51UK£16.90UK£19.3712
Feb ’24UK£17.00
UK£19.42
+14.3%
17.4%UK£27.18UK£14.23UK£19.0912
Jan ’24UK£15.58
UK£18.75
+20.4%
21.3%UK£27.45UK£12.72UK£17.7512
Dec ’23UK£15.42
UK£19.37
+25.6%
24.9%UK£27.51UK£12.75UK£17.6011
Nov ’23UK£12.80
UK£21.39
+67.2%
23.8%UK£30.08UK£13.51UK£19.2411

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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