Novartis India Valuation

Is 500672 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 500672 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500672 (₹1025.8) is trading below our estimate of fair value (₹1879.88)

Significantly Below Fair Value: 500672 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500672?

Key metric: As 500672 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500672. This is calculated by dividing 500672's market cap by their current earnings.
What is 500672's PE Ratio?
PE Ratio	29x
Earnings	₹874.00m
Market Cap	₹25.33b

500672 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.6x
Enterprise Value/EBITDA	25.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 500672's PE Ratio compare to its peers?

The above table shows the PE ratio for 500672 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	35x
530199 Themis Medicare	50.3x	n/a	₹26.6b
524164 IOL Chemicals and Pharmaceuticals	20.5x	29.2%	₹20.4b
507747 TTK Healthcare	26.6x	n/a	₹21.3b
590006 Amrutanjan Health Care	42.5x	n/a	₹20.2b
500672 Novartis India	29x	n/a	₹25.3b

Price-To-Earnings vs Peers: 500672 is good value based on its Price-To-Earnings Ratio (29x) compared to the peer average (35x).

Price to Earnings Ratio vs Industry

How does 500672's PE Ratio compare vs other companies in the IN Pharmaceuticals Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
INDSWFTLAB Ind-Swift Laboratories	1.6x	n/a	US$70.43m
524652 Ind-Swift	2x	n/a	US$13.12m

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 500672 is good value based on its Price-To-Earnings Ratio (29x) compared to the Indian Pharmaceuticals industry average (31.7x).

Price to Earnings Ratio vs Fair Ratio

What is 500672'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.

500672 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	29x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 500672's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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