Takeda Pharmaceutical Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: TAK ($13.92) is trading below our estimate of fair value ($33.88)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TAK. This is calculated by dividing TAK's market cap by their current earnings.
What is TAK's PE Ratio?
PE Ratio	22.8x
Earnings	JP¥290.00b
Market Cap	JP¥6.62t

TAK 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	2.5x
Enterprise Value/EBITDA	8.6x
PEG Ratio	1.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TAK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	20x
ZTS Zoetis	32.9x	9.9%	US$79.8b
RPRX Royalty Pharma	10.2x	6.3%	US$15.6b
JAZZ Jazz Pharmaceuticals	15.9x	16.3%	US$7.4b
MRK Merck	21.2x	16.0%	US$254.5b
TAK Takeda Pharmaceutical	22.8x	12.2%	US$6.6t

Price-To-Earnings vs Peers: TAK is expensive based on its Price-To-Earnings Ratio (22.8x) compared to the peer average (20x).

Price to Earnings Ratio vs Industry

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

6 Companies	Price / Earnings	Estimated Growth	Market Cap
NDOI Endo	0.5x	n/a	US$1.76b
KPRX Kiora Pharmaceuticals	1.9x	-40.4%	US$10.32m
EDXC Endexx	0.9x	n/a	US$6.25m
CNNC Cannonau	0.7x	n/a	US$483.63k

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: TAK is expensive based on its Price-To-Earnings Ratio (22.8x) compared to the US Pharmaceuticals industry average (19.5x).

Price to Earnings Ratio vs Fair Ratio

What is TAK'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.

TAK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22.8x
Fair PE Ratio	29.7x

Price-To-Earnings vs Fair Ratio: TAK is good value based on its Price-To-Earnings Ratio (22.8x) compared to the estimated Fair Price-To-Earnings Ratio (29.7x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.