Sandoz Group Valuation

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

Below Fair Value: SDZN.Y ($45.69) is trading below our estimate of fair value ($126.36)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SDZN.Y?

Key metric: As SDZN.Y is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SDZN.Y. This is calculated by dividing SDZN.Y's market cap by their current revenue.
What is SDZN.Y's PS Ratio?
PS Ratio	2x
Sales	US$10.11b
Market Cap	US$20.10b

SDZN.Y 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	2.4x
Enterprise Value/EBITDA	37.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does SDZN.Y's PS Ratio compare to its peers?

The above table shows the PS ratio for SDZN.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	2.5x
TEVA Teva Pharmaceutical Industries	1.1x	2.5%	US$19.4b
VTRS Viatris	1.1x	-1.1%	US$16.0b
RPRX Royalty Pharma	5.2x	7.2%	US$11.7b
CTLT Catalent	2.5x	6.8%	US$11.1b
SDZN.Y Sandoz Group	2x	5.7%	US$17.8b

Price-To-Sales vs Peers: SDZN.Y is good value based on its Price-To-Sales Ratio (2x) compared to the peer average (2.5x).

Price to Sales Ratio vs Industry

How does SDZN.Y's PS Ratio compare vs other companies in the US Pharmaceuticals Industry?

71 Companies	Price / Sales	Estimated Growth	Market Cap
OGN Organon	0.6x	-0.06%	US$3.94b
PRGO Perrigo	0.9x	3.4%	US$3.83b
BHC Bausch Health Companies	0.3x	1.5%	US$2.93b
AMRX Amneal Pharmaceuticals	1x	5.6%	US$2.60b

71 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: SDZN.Y is good value based on its Price-To-Sales Ratio (2x) compared to the US Pharmaceuticals industry average (2.8x).

Price to Sales Ratio vs Fair Ratio

What is SDZN.Y'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.

SDZN.Y PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2x
Fair PS Ratio	4.8x

Price-To-Sales vs Fair Ratio: SDZN.Y is good value based on its Price-To-Sales Ratio (2x) compared to the estimated Fair Price-To-Sales Ratio (4.8x).

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.

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