Bayer Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: BAY (PLN83.94) is trading below our estimate of fair value (PLN497.15)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for BAY. This is calculated by dividing BAY's market cap by their current revenue.
What is BAY's PS Ratio?
PS Ratio	0.4x
Sales	€46.74b
Market Cap	€18.82b

BAY 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	1.2x
Enterprise Value/EBITDA	5.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for BAY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	3.5x
CLN Celon Pharma	5.2x	1.3%	zł1.5b
TEVA Teva Pharmaceutical Industries	1.1x	2.5%	US$18.8b
SDZ Sandoz Group	2x	5.7%	CHF 17.8b
GALD Galderma Group	5.6x	11.6%	CHF 21.1b
BAY Bayer	0.4x	1.0%	zł18.8b

Price-To-Sales vs Peers: BAY is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (3.5x).

Price to Sales Ratio vs Industry

How does BAY's PS Ratio compare vs other companies in the European Pharmaceuticals Industry?

24 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	2.9x	7.4%
BAY Bayer	0.4x	1.0%	US$19.85b

24 Companies		Estimated Growth	Market Cap
Industry Avg.	2.9x	15.9%
BAY Bayer	0.4x	55.7%	US$19.85b

No more companies

Price-To-Sales vs Industry: BAY is good value based on its Price-To-Sales Ratio (0.4x) compared to the European Pharmaceuticals industry average (2.9x).

Price to Sales Ratio vs Fair Ratio

What is BAY'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.

BAY PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	12.1x

Price-To-Sales vs Fair Ratio: BAY is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (12.1x).

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 BAY forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	zł83.94	zł122.32 +45.7%	22.0%	zł195.94	zł95.58	n/a	20
Nov ’25	zł108.56	zł151.07 +39.2%	30.7%	zł295.63	zł108.69	n/a	20
Oct ’25	zł131.34	zł146.32 +11.4%	30.7%	zł290.60	zł106.84	n/a	21
Sep ’25	zł119.68	zł153.02 +27.9%	34.1%	zł293.86	zł108.04	n/a	22
Aug ’25	zł117.12	zł153.54 +31.1%	33.5%	zł291.49	zł107.17	n/a	22
Jul ’25	zł113.60	zł156.12 +37.4%	32.9%	zł293.40	zł107.87	n/a	22
Jun ’25	zł121.14	zł156.74 +29.4%	32.9%	zł290.92	zł106.96	n/a	22
May ’25	zł120.22	zł159.33 +32.5%	33.3%	zł293.58	zł107.94	n/a	21
Apr ’25	zł123.50	zł161.52 +30.8%	33.0%	zł292.12	zł107.40	n/a	20
Mar ’25	zł120.56	zł187.67 +55.7%	30.0%	zł323.75	zł107.92	n/a	21
Feb ’25	zł124.46	zł207.25 +66.5%	30.6%	zł373.92	zł108.70	n/a	21
Jan ’25	zł148.56	zł217.65 +46.5%	28.5%	zł372.00	zł108.14	n/a	22
Dec ’24	zł136.08	zł236.30 +73.6%	27.3%	zł388.92	zł155.57	n/a	22
Nov ’24	zł182.92	zł285.28 +56.0%	18.3%	zł400.38	zł191.29	zł108.56	22
Oct ’24	zł209.00	zł303.42 +45.2%	18.4%	zł414.42	zł198.00	zł131.34	21
Sep ’24	zł231.65	zł298.10 +28.7%	16.6%	zł402.15	zł201.07	zł119.68	21
Aug ’24	zł236.75	zł304.05 +28.4%	18.1%	zł429.80	zł199.39	zł117.12	21
Jul ’24	zł235.00	zł326.76 +39.0%	16.2%	zł434.18	zł255.14	zł113.60	20
Jun ’24	n/a	zł330.97 0%	15.9%	zł440.70	zł258.97	zł121.14	21
May ’24	n/a	zł340.81 0%	16.1%	zł458.63	zł261.42	zł120.22	22
Apr ’24	n/a	zł348.16 0%	16.2%	zł467.66	zł266.57	zł123.50	22
Mar ’24	n/a	zł347.12 0%	16.5%	zł462.53	zł252.29	zł120.56	23
Feb ’24	n/a	zł347.99 0%	18.0%	zł498.52	zł253.97	zł124.46	23
Jan ’24	n/a	zł359.59 0%	17.4%	zł497.12	zł253.25	zł148.56	22
Dec ’23	n/a	zł364.94 0%	15.9%	zł495.99	zł252.68	zł136.08	22
Nov ’23	n/a	zł367.31 0%	19.2%	zł502.95	zł175.84	zł182.92	22

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.