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Sandoz Group AG
SIX:SDZ

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Sandoz Group AG
SIX:SDZ
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Price: 62.54 CHF 2.09% Market Closed
Market Cap: CHf27.5B

P/FCFE

42.9
Current
2%
Cheaper
vs 3-y average of 43.9

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
42.9
=
Market Cap
CHf27.7B
/
Free Cash Flow to Equity
$791.2m

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
42.9
=
Market Cap
CHf27.7B
/
Free Cash Flow to Equity
$791.2m

Valuation Scenarios

Sandoz Group AG is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (43.9), the stock would be worth CHf64 (2% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-52%
Maximum Upside
+2%
Average Downside
25%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 42.9 CHf62.54
0%
3-Year Average 43.9 CHf64
+2%
5-Year Average 43.9 CHf64
+2%
Industry Average 21 CHf30.7
-51%
Country Average 20.4 CHf29.74
-52%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
CH
Sandoz Group AG
SIX:SDZ
27.1B CHF 42.9 37.1
US
Eli Lilly and Co
NYSE:LLY
883B USD 65.4 42.8
US
Johnson & Johnson
NYSE:JNJ
553.5B USD 21.2 26.3
CH
Roche Holding AG
SIX:ROG
248.4B CHF 27.5 20.1
UK
AstraZeneca PLC
LSE:AZN
216.3B GBP 37.4 28.3
US
Merck & Co Inc
NYSE:MRK
270.2B USD 11.9 14.8
CH
Novartis AG
SIX:NOVN
216.3B CHF 9.4 20.7
IE
Endo International PLC
LSE:0Y5F
244.4B USD -766.6 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.1T DKK 23.7 11.8
US
Pfizer Inc
NYSE:PFE
151.8B USD 24.6 19.5
US
Bristol-Myers Squibb Co
NYSE:BMY
122B USD 20.1 17.3
P/E Multiple
Earnings Growth PEG
CH
S
Sandoz Group AG
SIX:SDZ
Average P/E: 23.9
37.1
35%
1.1
US
Eli Lilly and Co
NYSE:LLY
42.8
32%
1.3
US
Johnson & Johnson
NYSE:JNJ
26.3
8%
3.3
CH
Roche Holding AG
SIX:ROG
20.1
14%
1.4
UK
AstraZeneca PLC
LSE:AZN
28.3
25%
1.1
US
Merck & Co Inc
NYSE:MRK
14.8
14%
1.1
CH
Novartis AG
SIX:NOVN
20.7
14%
1.5
IE
E
Endo International PLC
LSE:0Y5F
Negative Multiple: -83.6 N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
11.8
0%
N/A
US
Pfizer Inc
NYSE:PFE
19.5
22%
0.9
US
Bristol-Myers Squibb Co
NYSE:BMY
17.3
16%
1.1

Market Distribution

Higher than 81% of companies in Switzerland
Percentile
81th
Based on 862 companies
81th percentile
42.9
Low
0.1 — 13.4
Typical Range
13.4 — 31.1
High
31.1 —
Distribution Statistics
Switzerland
Min 0.1
30th Percentile 13.4
Median 20.4
70th Percentile 31.1
Max 931.4

Sandoz Group AG
Glance View

Market Cap
27.5B CHF
Industry
Pharmaceuticals

Sandoz Group AG, a renowned player in the pharmaceutical industry, stands as a global leader in the production of generic drugs and biosimilars. Originally part of the Swiss corporate giant Novartis, Sandoz has cultivated a reputation for delivering affordable healthcare solutions across the globe. Its foundation lies in the manufacturing of cost-effective, high-quality alternatives to branded medicines, making healthcare more accessible to a broader public. By focusing on generic pharmaceuticals—drugs that are comparable to branded products in terms of dosage, safety, strength, quality, and performance—Sandoz effectively manages to carve out a vital niche in the healthcare ecosystem. This strategic emphasis allows the company to offer a vast portfolio that spans across major therapeutic areas such as cardiovascular, central nervous system, pain management, and oncology, to name a few. Sandoz's business model hinges on its ability to streamline production processes and efficiently navigate regulatory landscapes, which enables the company to sell its products at competitive prices while maintaining profitability. One critical aspect of their operation is the capability to innovate within the generic space, exemplified by their expansion into biosimilars—biopharmaceutical drugs that are highly akin to existing biological products. As patents for major biologics expire, Sandoz capitalizes on the opportunity to introduce biosimilars, thus broadening access to complex therapies. The company invests significantly in research and development to enhance its pipeline of generic drugs and biosimilars, ensuring a steady flow of new market entries. Through a combination of strategic pricing, diverse product offerings, and robust R&D efforts, Sandoz sustains its business model while contributing profoundly to global health, embodying a mission of "Pioneering Access for Patients."

SDZ Intrinsic Value
54.2 CHF
Overvaluation 13%
Intrinsic Value
Price CHf62.54
S
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