Cipla Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: CIPLA (₹1506.65) is trading above our estimate of fair value (₹775.11)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CIPLA 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/Revenue4.6x
Enterprise Value/EBITDA18.6x
PEG Ratio3.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CIPLA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average39.2x
ZYDUSLIFE Zydus Lifesciences
31.1x5.0%₹1.2t
500124 Dr. Reddy's Laboratories
19.9x-2.2%₹1.1t
500420 Torrent Pharmaceuticals
62.4x20.3%₹1.0t
500257 Lupin
43.3x18.7%₹841.0b
CIPLA Cipla
29.5x9.0%₹1.2t

Price-To-Earnings vs Peers: CIPLA is good value based on its Price-To-Earnings Ratio (29.5x) compared to the peer average (39.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CIPLA is good value based on its Price-To-Earnings Ratio (29.5x) compared to the Indian Pharmaceuticals industry average (34.7x).


Price to Earnings Ratio vs Fair Ratio

What is CIPLA'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.

CIPLA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.5x
Fair PE Ratio39.9x

Price-To-Earnings vs Fair Ratio: CIPLA is good value based on its Price-To-Earnings Ratio (29.5x) compared to the estimated Fair Price-To-Earnings Ratio (39.9x).


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 CIPLA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,506.65
₹1,509.51
+0.2%
10.1%₹1,780.00₹1,180.00n/a35
Jul ’25₹1,479.10
₹1,506.51
+1.9%
10.3%₹1,780.00₹1,180.00n/a35
Jun ’25₹1,447.20
₹1,490.22
+3.0%
10.5%₹1,780.00₹1,165.00n/a36
May ’25₹1,400.00
₹1,455.71
+4.0%
12.6%₹1,750.00₹1,029.00n/a34
Apr ’25₹1,498.65
₹1,445.18
-3.6%
12.5%₹1,750.00₹1,029.00n/a34
Mar ’25₹1,470.90
₹1,431.77
-2.7%
11.7%₹1,660.00₹1,029.00n/a35
Feb ’25₹1,387.65
₹1,399.86
+0.9%
12.1%₹1,660.00₹1,015.00n/a36
Jan ’25₹1,251.00
₹1,265.19
+1.1%
10.7%₹1,450.00₹967.00n/a36
Dec ’24₹1,205.70
₹1,260.46
+4.5%
10.9%₹1,450.00₹967.00n/a37
Nov ’24₹1,201.25
₹1,262.19
+5.1%
11.1%₹1,450.00₹967.00n/a37
Oct ’24₹1,186.15
₹1,186.05
-0.008%
11.1%₹1,420.00₹890.00n/a37
Sep ’24₹1,245.40
₹1,166.59
-6.3%
10.3%₹1,389.00₹890.00n/a37
Aug ’24₹1,178.35
₹1,159.45
-1.6%
10.2%₹1,389.00₹890.00n/a38
Jul ’24₹1,014.95
₹1,057.34
+4.2%
10.1%₹1,278.00₹842.00₹1,479.1037
Jun ’24₹964.75
₹1,057.52
+9.6%
10.0%₹1,278.00₹842.00₹1,447.2038
May ’24₹908.05
₹1,112.60
+22.5%
11.8%₹1,336.00₹870.00₹1,400.0038
Apr ’24₹900.50
₹1,127.36
+25.2%
11.4%₹1,336.00₹870.00₹1,498.6538
Mar ’24₹899.60
₹1,155.85
+28.5%
9.9%₹1,336.00₹930.00₹1,470.9041
Feb ’24₹1,032.05
₹1,177.02
+14.0%
8.7%₹1,336.00₹930.00₹1,387.6541
Jan ’24₹1,075.95
₹1,212.28
+12.7%
9.2%₹1,370.00₹915.00₹1,251.0039
Dec ’23₹1,124.90
₹1,209.72
+7.5%
9.3%₹1,370.00₹915.00₹1,205.7039
Nov ’23₹1,173.40
₹1,122.24
-4.4%
8.9%₹1,286.00₹830.00₹1,201.2539
Oct ’23₹1,114.95
₹1,104.28
-1.0%
9.0%₹1,250.00₹830.00₹1,186.1540
Sep ’23₹1,023.00
₹1,100.30
+7.6%
8.8%₹1,250.00₹830.00₹1,245.4040
Aug ’23₹1,004.55
₹1,097.53
+9.3%
8.7%₹1,250.00₹830.00₹1,178.3539
Jul ’23₹949.30
₹1,073.86
+13.1%
8.6%₹1,195.00₹800.00₹1,014.9537

Analyst Forecast: Target price is less than 20% higher than the current share price.


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