Sandoz Group AG
SIX:SDZ
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P/FCFE
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.
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.
Valuation Scenarios
If P/FCFE returns to its 3-Year Average (43.9), the stock would be worth CHf64 (2% upside from current price).
| 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
Peer Comparison
| Market Cap | P/FCFE | P/E | ||||
|---|---|---|---|---|---|---|
| CH |
S
|
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 |
E
|
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 |
Market Distribution
| Min | 0.1 |
| 30th Percentile | 13.4 |
| Median | 20.4 |
| 70th Percentile | 31.1 |
| Max | 931.4 |
Other Multiples
Sandoz Group AG
Glance View
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."