We’ve recently updated our valuation analysis.

Horizon Therapeutics Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

HZNP 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/Revenue3.9x
Enterprise Value/EBITDA15.2x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

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

HZNP PE Ratio vs Peers
The above table shows the PE ratio for HZNP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.9x
INCY Incyte
15.6x30.0%US$14.7b
HALO Halozyme Therapeutics
14.5x24.6%US$5.3b
UTHR United Therapeutics
14.7x17.6%US$9.3b
EXEL Exelixis
18.8x24.1%US$5.1b
HZNP Horizon Therapeutics
18.6x25.6%US$14.2b

Price-To-Earnings vs Peers: HZNP is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the peer average (15.9x).


Price to Earnings Ratio vs Industry

How does HZNP's PE Ratio compare vs other companies in the US Biotechs Industry?

Price-To-Earnings vs Industry: HZNP is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the US Biotechs industry average (13.9x)


Price to Earnings Ratio vs Fair Ratio

What is HZNP'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.

HZNP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.6x
Fair PE Ratio29.9x

Price-To-Earnings vs Fair Ratio: HZNP is good value based on its Price-To-Earnings Ratio (18.6x) compared to the estimated Fair Price-To-Earnings Ratio (29.9x).


Share Price vs Fair Value

What is the Fair Price of HZNP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HZNP ($61.79) is trading below our estimate of fair value ($262.27)

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


Analyst Price Targets

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

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.


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