Viatris Valuation

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

Below Fair Value: VTRS ($11.83) is trading below our estimate of fair value ($47.69)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

VTRS 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/Revenue2x
Enterprise Value/EBITDA6.4x
PEG Ratio16x

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for VTRS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.8x
TEVA Teva Pharmaceutical Industries
1x2.2%US$16.2b
RPRX Royalty Pharma
5.8x7.4%US$18.2b
CTLT Catalent
2.5x7.5%US$10.2b
ELAN Elanco Animal Health
1.8x3.5%US$8.0b
VTRS Viatris
0.9x-1.4%US$14.0b

Price-To-Sales vs Peers: VTRS is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (2.8x).


Price to Earnings Ratio vs Industry

How does VTRS's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.5%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.5%
n/an/an/a
No more companies

Price-To-Sales vs Industry: VTRS is good value based on its Price-To-Sales Ratio (0.9x) compared to the US Pharmaceuticals industry average (2.9x).


Price to Sales Ratio vs Fair Ratio

What is VTRS'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.

VTRS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio4.1x

Price-To-Sales vs Fair Ratio: VTRS is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (4.1x).


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 VTRS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$11.83
US$12.17
+2.9%
7.7%US$14.00US$11.00n/a9
Mar ’25US$12.59
US$11.95
-5.1%
9.6%US$14.00US$10.00n/a9
Feb ’25US$11.87
US$11.73
-1.2%
11.1%US$14.00US$10.00n/a9
Jan ’25US$10.83
US$11.62
+7.3%
12.7%US$14.00US$9.00n/a9
Dec ’24US$9.37
US$11.61
+23.9%
13.5%US$14.00US$9.00n/a8
Nov ’24US$8.92
US$11.74
+31.6%
13.9%US$14.00US$9.00n/a8
Oct ’24US$9.86
US$12.66
+28.4%
11.2%US$15.00US$10.00n/a9
Sep ’24US$10.79
US$12.46
+15.4%
12.0%US$15.00US$10.00n/a9
Aug ’24US$10.22
US$12.34
+20.8%
12.0%US$15.00US$10.00n/a9
Jul ’24US$9.98
US$12.51
+25.4%
11.9%US$15.00US$10.00n/a10
Jun ’24US$9.18
US$12.66
+37.9%
11.8%US$15.00US$10.00n/a9
May ’24US$9.36
US$12.66
+35.2%
11.8%US$15.00US$10.00n/a9
Apr ’24US$9.62
US$13.35
+38.8%
17.3%US$18.00US$10.00n/a11
Mar ’24US$11.31
US$13.37
+18.2%
16.7%US$18.00US$10.00US$12.5912
Feb ’24US$12.26
US$13.45
+9.7%
16.9%US$18.00US$10.00US$11.8712
Jan ’24US$11.13
US$13.27
+19.3%
18.2%US$18.00US$10.00US$10.8311
Dec ’23US$11.24
US$13.27
+18.1%
18.2%US$18.00US$10.00US$9.3711
Nov ’23US$10.25
US$12.55
+22.4%
22.4%US$18.00US$9.00US$8.9211
Oct ’23US$8.52
US$13.50
+58.5%
27.2%US$21.00US$9.00US$9.8610
Sep ’23US$9.57
US$13.70
+43.2%
26.9%US$21.00US$9.00US$10.7910
Aug ’23US$9.66
US$13.90
+43.9%
28.7%US$21.00US$9.00US$10.2210
Jul ’23US$10.71
US$14.00
+30.7%
28.4%US$21.00US$9.00US$9.9810
Jun ’23US$12.07
US$14.46
+19.8%
24.7%US$21.00US$10.00US$9.1812
May ’23US$10.33
US$14.38
+39.2%
25.4%US$21.00US$10.00US$9.3612
Apr ’23US$10.82
US$14.12
+30.5%
25.7%US$21.00US$10.00US$9.6213
Mar ’23US$10.15
US$15.96
+57.3%
18.2%US$21.00US$10.00US$11.3113

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


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.