Teva (NYSE:TEVA) Valuation: Is There More Upside After the Recent Share Price Momentum?

Teva Pharmaceutical Industries (NYSE:TEVA) stock has recently drawn investor attention, with performance moving up 5% over the past month and gaining 20% during the past 3 months. This momentum has sparked fresh discussions around the company’s outlook and valuation.

See our latest analysis for Teva Pharmaceutical Industries.

Zooming out to the bigger picture, Teva’s share price has staged an impressive comeback lately, even as long-term total shareholder returns reveal just how much momentum has grown. Over the past year, the share price return is still in slightly negative territory, but with a 128% total return over three years and more than 100% over five years, investors who stuck around have been well rewarded. Sentiment shifts and recent price gains point to renewed optimism.

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But with shares now trading above recent levels and the company showing solid multi-year returns, is Teva still undervalued at this stage? Or has the market fully priced in its growth prospects and recovery story?

Most Popular Narrative: 20.3% Undervalued

With the narrative suggesting fair value around $24.22, Teva's last close at $19.31 looks well below the target price. The gap sets up a compelling premise given expectations of growth and profitability changes ahead.

The accelerating launch cadence of biosimilars (with 8 launches targeted through 2027 and a goal to double biosimilar revenue), backed by favorable regulatory trends increasing biosimilar adoption in major markets, should unlock incremental, higher-margin revenue streams and offset headwinds from traditional generics. This development may support long-term EBITDA growth.

Read the complete narrative.

Want to discover which headline-making metric supports Teva’s premium? One bold projection centers on major margin expansion and a profit benchmark rarely seen in this space. Find out what powers the narrative’s fair value; the details may surprise you.

Result: Fair Value of $24.22 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, long-term reliance on a few branded drugs and potential margin pressures from regulatory shifts could present challenges to Teva’s bullish outlook.

Find out about the key risks to this Teva Pharmaceutical Industries narrative.

Build Your Own Teva Pharmaceutical Industries Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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