ALC Relative Valuation
ALC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ALC is overvalued; if below, it's undervalued.
Historical Valuation
Alcon AG (ALC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 24.27 is considered Undervalued compared with the five-year average of 29.52. The fair price of Alcon AG (ALC) is between 81.72 to 102.95 according to relative valuation methord. Compared to the current price of 78.83 USD , Alcon AG is Undervalued By 3.54%.
Relative Value
Fair Zone
81.72-102.95
Current Price：78.83
3.54%
Undervalued
23.98
PE
1Y
3Y
5Y
Trailing
Forward
14.88
EV/EBITDA
Alcon AG. (ALC) has a current EV/EBITDA of 14.88. The 5-year average EV/EBITDA is 17.79. The thresholds are as follows: Strongly Undervalued below 13.81, Undervalued between 13.81 and 15.80, Fairly Valued between 19.78 and 15.80, Overvalued between 19.78 and 21.78, and Strongly Overvalued above 21.78. The current Forward EV/EBITDA of 14.88 falls within the Undervalued range.
19.18
EV/EBIT
Alcon AG. (ALC) has a current EV/EBIT of 19.18. The 5-year average EV/EBIT is 22.88. The thresholds are as follows: Strongly Undervalued below 17.08, Undervalued between 17.08 and 19.98, Fairly Valued between 25.78 and 19.98, Overvalued between 25.78 and 28.68, and Strongly Overvalued above 28.68. The current Forward EV/EBIT of 19.18 falls within the Undervalued range.
3.57
PS
Alcon AG. (ALC) has a current PS of 3.57. The 5-year average PS is 4.10. The thresholds are as follows: Strongly Undervalued below 3.32, Undervalued between 3.32 and 3.71, Fairly Valued between 4.49 and 3.71, Overvalued between 4.49 and 4.88, and Strongly Overvalued above 4.88. The current Forward PS of 3.57 falls within the Undervalued range.
16.76
P/OCF
Alcon AG. (ALC) has a current P/OCF of 16.76. The 5-year average P/OCF is 21.35. The thresholds are as follows: Strongly Undervalued below 15.48, Undervalued between 15.48 and 18.41, Fairly Valued between 24.28 and 18.41, Overvalued between 24.28 and 27.21, and Strongly Overvalued above 27.21. The current Forward P/OCF of 16.76 falls within the Undervalued range.
25.04
P/FCF
Alcon AG. (ALC) has a current P/FCF of 25.04. The 5-year average P/FCF is 35.92. The thresholds are as follows: Strongly Undervalued below 19.15, Undervalued between 19.15 and 27.53, Fairly Valued between 44.30 and 27.53, Overvalued between 44.30 and 52.68, and Strongly Overvalued above 52.68. The current Forward P/FCF of 25.04 falls within the Undervalued range.
Alcon AG (ALC) has a current Price-to-Book (P/B) ratio of 1.78. Compared to its 3-year average P/B ratio of 1.95 , the current P/B ratio is approximately -8.81% higher. Relative to its 5-year average P/B ratio of 1.92, the current P/B ratio is about -7.17% higher. Alcon AG (ALC) has a Forward Free Cash Flow (FCF) yield of approximately 3.96%. Compared to its 3-year average FCF yield of 2.39%, the current FCF yield is approximately 65.80% lower. Relative to its 5-year average FCF yield of 1.88% , the current FCF yield is about 111.25% lower.
1.76
P/B
Median3y
1.95
Median5y
1.92
3.96
FCF Yield
Median3y
2.39
Median5y
1.88
Competitors Valuation Multiple
The average P/S ratio for ALC's competitors is 3.57, providing a benchmark for relative valuation. Alcon AG Corp (ALC) exhibits a P/S ratio of 3.57, which is 0.00% above the industry average. Given its robust revenue growth of 6.52%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ALC decreased by 6.95% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.45B to 2.61B.
The secondary factor is the P/E Change, contributed 1.92%to the performance.
Overall, the performance of ALC in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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