Sumitomo Pharma Valuation

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

SMDP.Y ($4.1) is trading below our estimate of [[fair value]] ($7.89)

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: SMDP.Y ($4.1) is trading below our estimate of fair value ($7.89)

Significantly Below Fair Value: SMDP.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 SMDP.Y?

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

The above table shows the Price to Sales ratio for SMDP.Y. This is calculated by dividing SMDP.Y's market cap by their current revenue.
What is SMDP.Y's PS Ratio?
PS Ratio	0.7x
Sales	JP¥342.67b
Market Cap	JP¥231.62b

SMDP.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	1.5x
Enterprise Value/EBITDA	-2.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SMDP.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	5.6x
NDOI Endo	1x	n/a	US$1.8b
LGND Ligand Pharmaceuticals	15.1x	15.0%	US$2.3b
INVA Innoviva	3.4x	6.4%	US$1.2b
SUPN Supernus Pharmaceuticals	3.1x	5.9%	US$2.0b
SMDP.Y Sumitomo Pharma	0.7x	4.0%	US$231.6b

Price-To-Sales vs Peers: SMDP.Y is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (5.7x).

Price to Sales Ratio vs Industry

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

73 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	3.0x	10.2%
SMDP.Y Sumitomo Pharma	0.7x	4.0%	US$1.53b
OGN Organon	0.6x	-0.06%	US$4.09b
PRGO Perrigo	0.9x	3.4%	US$3.89b

73 Companies		Estimated Growth	Market Cap
Industry Avg.	3.0x	23.9%
SMDP.Y Sumitomo Pharma	0.7x	88.7%	US$1.53b

No more companies

Price-To-Sales vs Industry: SMDP.Y is good value based on its Price-To-Sales Ratio (0.7x) compared to the US Pharmaceuticals industry average (3x).

Price to Sales Ratio vs Fair Ratio

What is SMDP.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.

SMDP.Y PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.7x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SMDP.Y's Price-To-Sales Fair Ratio for valuation analysis.

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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