We’ve recently updated our valuation analysis.

Avantor Valuation

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

[object Object] Score

4/6

Valuation Score 4/6

  • 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 AVTR?

Other financial metrics that can be useful for relative valuation.

AVTR 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/Revenue2.7x
Enterprise Value/EBITDA13.1x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AVTR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.7x
TECH Bio-Techne
44.4x10.9%US$13.0b
WAT Waters
29x6.4%US$20.2b
WST West Pharmaceutical Services
28.1x10.5%US$17.7b
CRL Charles River Laboratories International
25.1x17.4%US$10.9b
AVTR Avantor
25.2x13.0%US$15.1b

Price-To-Earnings vs Peers: AVTR is good value based on its Price-To-Earnings Ratio (25.2x) compared to the peer average (31.7x).


Price to Earnings Ratio vs Industry

How does AVTR's PE Ratio compare vs other companies in the US Life Sciences Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.0%
n/an/an/a

Price-To-Earnings vs Industry: AVTR is good value based on its Price-To-Earnings Ratio (25.2x) compared to the US Life Sciences industry average (28.9x)


Price to Earnings Ratio vs Fair Ratio

What is AVTR'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.

AVTR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.2x
Fair PE Ratio20.4x

Price-To-Earnings vs Fair Ratio: AVTR is expensive based on its Price-To-Earnings Ratio (25.2x) compared to the estimated Fair Price-To-Earnings Ratio (20.4x).


Share Price vs Fair Value

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

Below Fair Value: AVTR ($22.35) is trading below our estimate of fair value ($24.08)

Significantly Below Fair Value: AVTR is trading below fair value, but not by a significant amount.


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 AVTR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$22.35
US$27.13
+21.4%
9.2%US$33.00US$23.00n/a16
Nov ’23US$19.98
US$27.13
+35.8%
9.2%US$33.00US$23.00n/a16
Oct ’23US$19.60
US$34.75
+77.3%
12.6%US$42.00US$28.00n/a16
Sep ’23US$24.93
US$37.19
+49.2%
12.9%US$51.00US$32.00n/a16
Aug ’23US$29.49
US$38.07
+29.1%
14.2%US$51.00US$32.00n/a15
Jul ’23US$31.61
US$42.47
+34.3%
10.2%US$51.00US$33.00n/a15
Jun ’23US$31.93
US$42.47
+33.0%
10.2%US$51.00US$33.00n/a15
May ’23US$31.88
US$42.80
+34.3%
10.1%US$51.00US$33.00n/a15
Apr ’23US$34.19
US$46.07
+34.7%
7.5%US$55.00US$42.00n/a15
Mar ’23US$34.22
US$46.07
+34.6%
7.5%US$55.00US$42.00n/a15
Feb ’23US$38.01
US$47.29
+24.4%
7.3%US$55.00US$41.00n/a14
Jan ’23US$42.14
US$47.71
+13.2%
6.3%US$55.00US$44.00n/a14
Dec ’22US$38.29
US$47.13
+23.1%
7.0%US$55.00US$41.00US$22.8015
Nov ’22US$39.56
US$46.27
+17.0%
6.0%US$51.00US$41.00US$19.9815
Oct ’22US$41.55
US$44.67
+7.5%
6.3%US$51.00US$41.00US$19.6015
Sep ’22US$39.91
US$42.84
+7.3%
3.6%US$45.00US$40.00US$24.9319
Aug ’22US$37.58
US$41.56
+10.6%
7.4%US$45.00US$32.00US$29.4918
Jul ’22US$36.21
US$37.84
+4.5%
6.0%US$40.00US$32.00US$31.6119
Jun ’22US$31.35
US$37.56
+19.8%
5.8%US$40.00US$32.00US$31.9318
May ’22US$32.04
US$37.26
+16.3%
6.6%US$40.00US$32.00US$31.8819
Apr ’22US$29.45
US$34.26
+16.3%
6.9%US$40.00US$28.00US$34.1919
Mar ’22US$28.47
US$34.33
+20.6%
7.0%US$40.00US$28.00US$34.2218
Feb ’22US$29.50
US$31.50
+6.8%
12.8%US$40.00US$21.00US$38.0118
Jan ’22US$28.15
US$28.89
+2.6%
11.0%US$35.00US$21.00US$42.1418
Dec ’21US$27.15
US$28.06
+3.3%
9.2%US$33.00US$21.00US$38.2918

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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