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 26.39 is considered Undervalued compared with the five-year average of 30.34. The fair price of Alcon AG (ALC) is between 87.43 to 108.08 according to relative valuation methord. Compared to the current price of 84.12 USD , Alcon AG is Undervalued By 3.79%.
Relative Value
Fair Zone
87.43-108.08
Current Price：84.12
3.79%
Undervalued
26.21
PE
1Y
3Y
5Y
Trailing
Forward
16.10
EV/EBITDA
Alcon AG. (ALC) has a current EV/EBITDA of 16.10. The 5-year average EV/EBITDA is 18.15. The thresholds are as follows: Strongly Undervalued below 14.39, Undervalued between 14.39 and 16.27, Fairly Valued between 20.04 and 16.27, Overvalued between 20.04 and 21.92, and Strongly Overvalued above 21.92. The current Forward EV/EBITDA of 16.10 falls within the Undervalued range.
20.68
EV/EBIT
Alcon AG. (ALC) has a current EV/EBIT of 20.68. The 5-year average EV/EBIT is 23.43. The thresholds are as follows: Strongly Undervalued below 17.64, Undervalued between 17.64 and 20.53, Fairly Valued between 26.32 and 20.53, Overvalued between 26.32 and 29.22, and Strongly Overvalued above 29.22. The current Forward EV/EBIT of 20.68 falls within the Historic Trend Line -Fairly Valued range.
3.91
PS
Alcon AG. (ALC) has a current PS of 3.91. The 5-year average PS is 4.12. The thresholds are as follows: Strongly Undervalued below 3.39, Undervalued between 3.39 and 3.76, Fairly Valued between 4.49 and 3.76, Overvalued between 4.49 and 4.85, and Strongly Overvalued above 4.85. The current Forward PS of 3.91 falls within the Historic Trend Line -Fairly Valued range.
18.15
P/OCF
Alcon AG. (ALC) has a current P/OCF of 18.15. The 5-year average P/OCF is 22.05. The thresholds are as follows: Strongly Undervalued below 16.05, Undervalued between 16.05 and 19.05, Fairly Valued between 25.05 and 19.05, Overvalued between 25.05 and 28.05, and Strongly Overvalued above 28.05. The current Forward P/OCF of 18.15 falls within the Undervalued range.
28.16
P/FCF
Alcon AG. (ALC) has a current P/FCF of 28.16. The 5-year average P/FCF is 37.87. The thresholds are as follows: Strongly Undervalued below 19.98, Undervalued between 19.98 and 28.92, Fairly Valued between 46.81 and 28.92, Overvalued between 46.81 and 55.76, and Strongly Overvalued above 55.76. The current Forward P/FCF of 28.16 falls within the Undervalued range.
Alcon AG (ALC) has a current Price-to-Book (P/B) ratio of 1.92. Compared to its 3-year average P/B ratio of 1.94 , the current P/B ratio is approximately -0.70% higher. Relative to its 5-year average P/B ratio of 1.91, the current P/B ratio is about 0.92% higher. Alcon AG (ALC) has a Forward Free Cash Flow (FCF) yield of approximately 3.81%. Compared to its 3-year average FCF yield of 1.96%, the current FCF yield is approximately 94.95% lower. Relative to its 5-year average FCF yield of 1.65% , the current FCF yield is about 131.56% lower.
1.90
P/B
Median3y
1.94
Median5y
1.91
3.95
FCF Yield
Median3y
1.96
Median5y
1.65
Competitors Valuation Multiple
The average P/S ratio for ALC's competitors is 4.70, providing a benchmark for relative valuation. Alcon AG Corp (ALC) exhibits a P/S ratio of 3.91, which is -16.73% above the industry average. Given its robust revenue growth of 0.57%, 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 12.52% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 10.09 to 14.15.
The secondary factor is the Revenue Growth, contributed 0.57%to the performance.
Overall, the performance of ALC in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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