AstraZeneca PLC

LSE:AZN Stock Report

Market Cap: UK£154.7b

AstraZeneca Valuation

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

Below Fair Value: AZN (£99.78) is trading below our estimate of fair value (£235.61)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AZN. This is calculated by dividing AZN's market cap by their current earnings.
What is AZN's PE Ratio?
PE Ratio30x
EarningsUS$6.50b
Market CapUS$195.01b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AZN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.1x
GSK GSK
21.1x22.4%UK£53.1b
HIK Hikma Pharmaceuticals
17.8x11.2%UK£4.0b
MRK Merck
20.1x15.7%US$243.6b
NOVN Novartis
17.6x7.0%CHF 183.4b
AZN AstraZeneca
30x18.0%UK£154.7b

Price-To-Earnings vs Peers: AZN is expensive based on its Price-To-Earnings Ratio (30x) compared to the peer average (19.1x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
AZN 30.0xIndustry Avg. 20.7xNo. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AZN is expensive based on its Price-To-Earnings Ratio (30x) compared to the European Pharmaceuticals industry average (20.7x).

Price to Earnings Ratio vs Fair Ratio

What is AZN'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.

AZN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30x
Fair PE Ratio40.2x

Price-To-Earnings vs Fair Ratio: AZN is good value based on its Price-To-Earnings Ratio (30x) compared to the estimated Fair Price-To-Earnings Ratio (40.2x).

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 AZN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£99.78
UK£141.65
+42.0%
13.6%UK£180.79UK£105.75n/a19
Nov ’25UK£110.22
UK£142.80
+29.6%
15.3%UK£200.83UK£105.93n/a19
Oct ’25UK£118.00
UK£139.47
+18.2%
14.6%UK£196.13UK£104.94n/a20
Sep ’25UK£132.74
UK£137.53
+3.6%
11.7%UK£171.95UK£107.68n/a21
Aug ’25UK£125.12
UK£140.20
+12.1%
11.6%UK£175.68UK£110.01n/a22
Jul ’25UK£123.04
UK£138.12
+12.3%
12.1%UK£178.59UK£108.70n/a22
Jun ’25UK£121.90
UK£135.18
+10.9%
12.3%UK£176.60UK£107.84n/a22
May ’25UK£121.70
UK£131.91
+8.4%
13.5%UK£176.24UK£105.08n/a20
Apr ’25UK£106.78
UK£128.48
+20.3%
14.9%UK£177.07UK£95.60n/a21
Mar ’25UK£100.80
UK£127.76
+26.7%
14.3%UK£177.11UK£94.64n/a21
Feb ’25UK£104.30
UK£129.70
+24.4%
12.1%UK£171.03UK£107.26n/a21
Jan ’25UK£106.00
UK£130.27
+22.9%
10.4%UK£167.36UK£105.81n/a21
Dec ’24UK£101.98
UK£130.53
+28.0%
10.3%UK£167.08UK£105.64n/a21
Nov ’24UK£103.36
UK£136.75
+32.3%
9.9%UK£177.28UK£111.16UK£110.2222
Oct ’24UK£111.02
UK£139.20
+25.4%
9.3%UK£176.89UK£115.94UK£118.0022
Sep ’24UK£107.00
UK£134.82
+26.0%
10.4%UK£172.62UK£106.75UK£132.7423
Aug ’24UK£111.96
UK£134.26
+19.9%
10.4%UK£173.77UK£105.72UK£125.1223
Jul ’24UK£112.76
UK£133.63
+18.5%
9.6%UK£171.80UK£105.56UK£123.0422
Jun ’24UK£116.70
UK£133.80
+14.7%
9.9%UK£174.13UK£106.99UK£121.9022
May ’24UK£117.46
UK£131.64
+12.1%
10.0%UK£174.43UK£108.01UK£121.7022
Apr ’24UK£112.32
UK£128.16
+14.1%
10.3%UK£168.18UK£99.79UK£106.7823
Mar ’24UK£108.16
UK£129.39
+19.6%
14.1%UK£176.64UK£69.54UK£100.8025
Feb ’24UK£102.80
UK£125.70
+22.3%
15.1%UK£172.00UK£65.08UK£104.3025
Jan ’24UK£112.18
UK£124.28
+10.8%
15.0%UK£172.58UK£66.62UK£106.0025
Dec ’23UK£112.00
UK£118.86
+6.1%
15.3%UK£170.40UK£65.78UK£101.9825
Nov ’23UK£103.46
UK£121.42
+17.4%
15.1%UK£174.31UK£70.14UK£103.3624

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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