Dechra Pharmaceuticals PLC

LSE:DPH Stock Report

Market Cap: UK£4.4b

Dechra Pharmaceuticals Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: DPH (£38.66) is trading above our estimate of fair value (£34.59)

Significantly Below Fair Value: DPH is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for DPH. This is calculated by dividing DPH's market cap by their current revenue.
What is DPH's PS Ratio?
PS Ratio5.8x
SalesUK£761.50m
Market CapUK£4.40b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DPH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.4x
HIK Hikma Pharmaceuticals
1.8x3.8%UK£4.3b
HCM HUTCHMED (China)
4.9x18.0%UK£2.4b
INDV Indivior
1.1x5.5%UK£1.1b
GSK GSK
1.7x3.9%UK£54.8b
DPH Dechra Pharmaceuticals
5.8x7.9%UK£4.4b

Price-To-Sales vs Peers: DPH is expensive based on its Price-To-Sales Ratio (5.8x) compared to the peer average (2.4x).

Price to Sales Ratio vs Industry

How does DPH's PS Ratio compare vs other companies in the GB Pharmaceuticals Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
EAH ECO Animal Health Group
0.5x5.9%US$55.97m
No more companies available in this PS range
DPH 5.8xIndustry Avg. 2.9xNo. of Companies6PS048121620+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DPH is expensive based on its Price-To-Sales Ratio (5.8x) compared to the European Pharmaceuticals industry average (3x).

Price to Sales Ratio vs Fair Ratio

What is DPH'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.

DPH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.8x
Fair PS Ratio6.8x

Price-To-Sales vs Fair Ratio: DPH is good value based on its Price-To-Sales Ratio (5.8x) compared to the estimated Fair Price-To-Sales Ratio (6.8x).

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 DPH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
UK£37.59
0%
12.2%UK£40.70UK£28.50n/a5
Nov ’25n/a
UK£37.59
0%
12.2%UK£40.70UK£28.50n/a5
Oct ’25n/a
UK£37.59
0%
12.2%UK£40.70UK£28.50n/a5
Sep ’25n/a
UK£37.59
0%
12.2%UK£40.70UK£28.50n/a5
Aug ’25n/a
UK£37.59
0%
12.2%UK£40.70UK£28.50n/a5
Jul ’25n/a
UK£37.59
0%
12.2%UK£40.70UK£28.50n/a5
Jun ’25n/a
UK£37.59
0%
12.2%UK£40.70UK£28.50n/a5
May ’25n/a
UK£37.59
0%
12.2%UK£40.70UK£28.50n/a5
Apr ’25n/a
UK£37.59
0%
12.2%UK£40.70UK£28.50n/a5
Mar ’25n/a
UK£37.59
0%
12.2%UK£40.70UK£28.50n/a5
Feb ’25n/a
UK£37.59
0%
12.2%UK£40.70UK£28.50n/a5
Jan ’25UK£38.58
UK£37.99
-1.5%
11.3%UK£40.70UK£28.50n/a6
Dec ’24UK£38.28
UK£38.18
-0.3%
9.8%UK£40.70UK£28.50n/a8
Nov ’24UK£38.00
UK£38.18
+0.5%
9.8%UK£40.70UK£28.50n/a8
Oct ’24UK£37.88
UK£39.19
+3.5%
13.3%UK£50.00UK£28.50n/a9
Sep ’24UK£38.10
UK£39.19
+2.9%
13.3%UK£50.00UK£28.50n/a9
Aug ’24UK£36.88
UK£40.23
+9.1%
14.6%UK£50.00UK£28.50n/a10
Jul ’24UK£36.86
UK£39.41
+6.9%
15.6%UK£50.00UK£28.50n/a11
Jun ’24UK£33.74
UK£39.70
+17.7%
15.5%UK£50.00UK£28.50n/a11
May ’24UK£37.30
UK£39.39
+5.6%
16.3%UK£50.00UK£28.50n/a11
Apr ’24UK£26.50
UK£37.81
+42.7%
18.4%UK£50.00UK£28.50n/a11
Mar ’24UK£27.26
UK£39.05
+43.2%
18.3%UK£50.00UK£28.50n/a11
Feb ’24UK£29.04
UK£39.93
+37.5%
19.4%UK£53.00UK£28.50n/a11
Jan ’24UK£26.18
UK£42.40
+62.0%
20.2%UK£57.00UK£28.50UK£38.5810
Dec ’23UK£27.78
UK£42.40
+52.6%
20.2%UK£57.00UK£28.50UK£38.2810
Nov ’23UK£26.38
UK£42.20
+60.0%
19.4%UK£57.00UK£28.50UK£38.0011

Analyst Forecast: Target price is lower than the current share price.

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