Organon Valuation

Is OGN 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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: OGN ($14.73) is trading below our estimate of fair value ($82.77)

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


Key Valuation Metric

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

Key metric: As OGN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for OGN. This is calculated by dividing OGN's market cap by their current earnings.
What is OGN's PE Ratio?
PE Ratio2.9x
EarningsUS$1.30b
Market CapUS$3.76b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for OGN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.9x
PBH Prestige Consumer Healthcare
19.8x5.3%US$4.1b
ELAN Elanco Animal Health
32.4x2.7%US$6.6b
SUPN Supernus Pharmaceuticals
33.4x36.2%US$2.0b
CORT Corcept Therapeutics
41.8x41.0%US$5.7b
OGN Organon
2.9x-7.1%US$3.8b

Price-To-Earnings vs Peers: OGN is good value based on its Price-To-Earnings Ratio (2.9x) compared to the peer average (31.9x).


Price to Earnings Ratio vs Industry

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

12 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.20.1x23.8%
OGN Organon
2.9x-7.1%US$3.76b
NDOI Endo
0.6xn/aUS$1.91b
PROC Procaps Group
1.2xn/aUS$59.68m
OGN 2.9xIndustry Avg. 20.1xNo. of Companies12PE01224364860+
12 CompaniesEstimated GrowthMarket Cap
Industry Avg.20.1x23.8%
OGN Organon
2.9x-7.1%US$3.76b
No more companies

Price-To-Earnings vs Industry: OGN is good value based on its Price-To-Earnings Ratio (2.9x) compared to the US Pharmaceuticals industry average (19.9x).


Price to Earnings Ratio vs Fair Ratio

What is OGN'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.

OGN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.9x
Fair PE Ratio16.8x

Price-To-Earnings vs Fair Ratio: OGN is good value based on its Price-To-Earnings Ratio (2.9x) compared to the estimated Fair Price-To-Earnings Ratio (16.8x).


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 OGN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$14.73
US$22.38
+51.9%
19.7%US$29.00US$17.00n/a8
Nov ’25US$18.07
US$22.63
+25.2%
20.0%US$30.00US$17.00n/a8
Oct ’25US$18.83
US$22.75
+20.8%
19.3%US$30.00US$17.00n/a8
Sep ’25US$22.35
US$22.50
+0.7%
20.4%US$30.00US$17.00n/a8
Aug ’25US$21.65
US$22.50
+3.9%
20.6%US$30.00US$16.00n/a8
Jul ’25US$20.31
US$22.50
+10.8%
20.6%US$30.00US$16.00n/a8
Jun ’25US$21.33
US$22.50
+5.5%
20.6%US$30.00US$16.00n/a8
May ’25US$18.83
US$21.75
+15.5%
21.7%US$28.00US$15.00n/a8
Apr ’25US$18.50
US$21.38
+15.5%
22.2%US$28.00US$15.00n/a8
Mar ’25US$17.56
US$21.38
+21.7%
22.2%US$28.00US$15.00n/a8
Feb ’25US$17.24
US$20.44
+18.6%
27.0%US$27.00US$12.00n/a9
Jan ’25US$14.42
US$20.33
+41.0%
28.0%US$27.00US$11.00n/a9
Dec ’24US$11.50
US$20.33
+76.8%
28.0%US$27.00US$11.00n/a9
Nov ’24US$14.65
US$27.67
+88.9%
25.5%US$43.00US$19.00US$18.079
Oct ’24US$17.36
US$29.11
+67.7%
20.6%US$43.00US$23.00US$18.839
Sep ’24US$22.14
US$29.25
+32.1%
21.7%US$43.00US$23.00US$22.358
Aug ’24US$21.73
US$28.38
+30.6%
23.6%US$43.00US$21.00US$21.658
Jul ’24US$20.81
US$29.67
+42.6%
22.0%US$43.00US$21.00US$20.319
Jun ’24US$19.45
US$30.78
+58.2%
18.7%US$43.00US$23.00US$21.339
May ’24US$24.50
US$31.67
+29.3%
17.1%US$43.00US$24.00US$18.839
Apr ’24US$23.52
US$32.90
+39.9%
15.2%US$43.00US$24.00US$18.5010
Mar ’24US$24.29
US$32.89
+35.4%
16.0%US$43.00US$24.00US$17.569
Feb ’24US$30.31
US$33.33
+10.0%
17.5%US$43.00US$24.00US$17.249
Jan ’24US$27.93
US$33.33
+19.3%
17.5%US$43.00US$24.00US$14.429
Dec ’23US$26.42
US$32.13
+21.6%
15.6%US$38.00US$24.00US$11.508
Nov ’23US$26.39
US$34.50
+30.7%
15.7%US$41.00US$25.00US$14.658

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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