Hikma Pharmaceuticals PLC

LSE:HIK Stock Report

Market Cap: UK£4.1b

Hikma Pharmaceuticals Valuation

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

Below Fair Value: HIK (£18.72) is trading below our estimate of fair value (£37.72)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HIK. This is calculated by dividing HIK's market cap by their current earnings.
What is HIK's PE Ratio?
PE Ratio18.4x
EarningsUS$285.00m
Market CapUS$5.17b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HIK 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
21.3x21.9%UK£53.4b
ANCR Animalcare Group
32.1x15.8%UK£148.5m
AZN AstraZeneca
30.3x18.4%UK£156.0b
EAH ECO Animal Health Group
42.7x34.2%UK£44.7m
HIK Hikma Pharmaceuticals
18.3x12.8%UK£4.2b

Price-To-Earnings vs Peers: HIK is good value based on its Price-To-Earnings Ratio (18.3x) compared to the peer average (31.6x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
HIK 18.4xIndustry Avg. 21.1xNo. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HIK is good value based on its Price-To-Earnings Ratio (18.3x) compared to the European Pharmaceuticals industry average (21.1x).

Price to Earnings Ratio vs Fair Ratio

What is HIK'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.

HIK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.4x
Fair PE Ratio24.3x

Price-To-Earnings vs Fair Ratio: HIK is good value based on its Price-To-Earnings Ratio (18.3x) compared to the estimated Fair Price-To-Earnings Ratio (24.3x).

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 HIK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£18.72
UK£23.28
+24.4%
9.6%UK£28.01UK£20.12n/a10
Nov ’25UK£18.73
UK£23.13
+23.5%
8.7%UK£27.21UK£19.69n/a10
Oct ’25UK£19.11
UK£22.87
+19.7%
10.7%UK£27.85UK£19.16n/a11
Sep ’25UK£19.83
UK£23.22
+17.1%
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£18.67
UK£22.89
+22.6%
13.4%UK£28.64UK£18.93n/a11
Jun ’25UK£19.30
UK£22.94
+18.8%
13.3%UK£28.24UK£18.85n/a11
May ’25UK£19.35
UK£22.82
+17.9%
13.3%UK£28.13UK£18.70n/a11
Apr ’25UK£19.19
UK£22.95
+19.6%
12.6%UK£27.77UK£18.68n/a11
Mar ’25UK£19.34
UK£22.68
+17.3%
12.1%UK£27.53UK£18.63n/a11
Feb ’25UK£19.12
UK£21.98
+15.0%
12.3%UK£26.37UK£18.52n/a11
Jan ’25UK£17.89
UK£22.01
+23.0%
12.1%UK£26.39UK£18.53n/a11
Dec ’24UK£17.58
UK£22.96
+30.6%
11.8%UK£27.27UK£19.16n/a11
Nov ’24UK£19.20
UK£23.83
+24.1%
10.6%UK£28.85UK£20.02UK£18.7311
Oct ’24UK£20.88
UK£24.02
+15.0%
10.5%UK£28.67UK£19.89UK£19.1111
Sep ’24UK£21.73
UK£22.69
+4.4%
11.5%UK£27.50UK£18.50UK£19.8312
Aug ’24UK£21.05
UK£20.86
-0.9%
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£18.6712
Jun ’24UK£17.92
UK£20.82
+16.2%
14.9%UK£27.77UK£17.13UK£19.3011
May ’24UK£18.41
UK£20.21
+9.8%
15.8%UK£27.68UK£16.75UK£19.3511
Apr ’24UK£16.75
UK£20.32
+21.3%
15.1%UK£27.29UK£16.76UK£19.1911
Mar ’24UK£17.39
UK£20.26
+16.6%
15.1%UK£27.51UK£16.90UK£19.3412
Feb ’24UK£16.93
UK£19.42
+14.8%
17.4%UK£27.18UK£14.23UK£19.1212
Jan ’24UK£15.52
UK£18.75
+20.8%
21.3%UK£27.45UK£12.72UK£17.8912
Dec ’23UK£15.42
UK£19.37
+25.6%
24.9%UK£27.51UK£12.75UK£17.5811
Nov ’23UK£12.92
UK£21.39
+65.6%
23.8%UK£30.08UK£13.51UK£19.2011

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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