A Look at Eisai (TSE:4523) Valuation Following Major Oncology and Alzheimer’s Milestones

Eisai (TSE:4523) drew investor attention in late October 2025 following two important announcements. The company, together with Merck, reported key Phase 3 trial results for its oncology pipeline and received Health Canada’s conditional approval for Leqembi in early Alzheimer’s disease.

See our latest analysis for Eisai.

Eisai’s steady stream of clinical news this autumn has stirred up trading activity, yet the stock’s 1-year total shareholder return stands at -8.7%, reflecting lingering caution from investors. Despite a jump of 7.5% in the last 90 days, share price momentum remains mixed as the market awaits clearer signs of lasting turnaround or renewed growth potential.

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With Eisai’s shares still well below analysts’ price targets despite clinical milestones and recent approvals, investors are left to wonder if the market is overlooking upside or has already priced in future growth. Could this be a buying opportunity?

Most Popular Narrative: 9.1% Undervalued

With Eisai’s fair value estimate of ¥5,027 sitting above the last close at ¥4,568, the latest narrative points to upside potential that may not be fully appreciated by investors yet. The difference invites closer scrutiny of the drivers behind this valuation.

The launch and approval of the home-administered SC-AI formulation for LEQEMBI, with high physician and patient anticipation, promises to unlock substantial incremental demand through enhanced convenience, improved treatment adherence, and reduced burden on healthcare systems, benefiting both topline revenues and margins through operational efficiencies and lower administration costs.

Read the complete narrative.

Want to know what’s really boosting Eisai’s fair value? The narrative builds its outlook on sky-high profit margin expansion and a future growth profile that stands out. Curious about the assumptions underpinning this bullish forecast and the bold numbers that justify that premium? The full narrative unpacks each one. See what’s under the hood.

Result: Fair Value of ¥5,027 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regulatory pressure on global drug pricing and overreliance on a few key products could quickly change Eisai’s outlook if challenges intensify.

Find out about the key risks to this Eisai narrative.

Another View: SWS DCF Model Says Even More Upside

While analyst price targets suggest Eisai's shares are close to fair value, the SWS DCF model tells a different story. It estimates Eisai’s fair value at ¥6,724, which is over 30% above the current price. This implies the market may be overlooking longer-term cash flow potential. Could this deeper undervaluation signal a real opportunity, or is the market factoring in risks that models miss?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own Eisai Narrative

If you want to test these assumptions for yourself or prefer building your own outlook, you can craft a fresh narrative in just a few minutes by using Do it your way.

A great starting point for your Eisai research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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