ALC Valuation

Alcon AG

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81.450

+0.69(0.854%)1D

Overview
Forecast
Valuation
Earnings

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 23.88 is considered Undervalued compared with the five-year average of 30.21. The fair price of Alcon AG (ALC) is between 90.66 to 112.62 according to relative valuation methord. Compared to the current price of 81.45 USD , Alcon AG is Undervalued By 10.16%.

Relative Value

Fair Zone

90.66-112.62

Current Price：81.45

10.16%

Undervalued

24.81

Trailing

Forward

15.55

EV/EBITDA

Alcon AG. (ALC) has a current EV/EBITDA of 15.55. The 5-year average EV/EBITDA is 18.11. The thresholds are as follows: Strongly Undervalued below 14.35, Undervalued between 14.35 and 16.23, Fairly Valued between 19.98 and 16.23, Overvalued between 19.98 and 21.86, and Strongly Overvalued above 21.86. The current Forward EV/EBITDA of 15.55 falls within the Undervalued range.

20.15

EV/EBIT

Alcon AG. (ALC) has a current EV/EBIT of 20.15. The 5-year average EV/EBIT is 23.35. The thresholds are as follows: Strongly Undervalued below 17.65, Undervalued between 17.65 and 20.50, Fairly Valued between 26.20 and 20.50, Overvalued between 26.20 and 29.04, and Strongly Overvalued above 29.04. The current Forward EV/EBIT of 20.15 falls within the Undervalued range.

3.76

Alcon AG. (ALC) has a current PS of 3.76. 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 3.76 falls within the Historic Trend Line -Fairly Valued range.

17.59

P/OCF

Alcon AG. (ALC) has a current P/OCF of 17.59. The 5-year average P/OCF is 21.92. The thresholds are as follows: Strongly Undervalued below 16.12, Undervalued between 16.12 and 19.02, Fairly Valued between 24.82 and 19.02, Overvalued between 24.82 and 27.72, and Strongly Overvalued above 27.72. The current Forward P/OCF of 17.59 falls within the Undervalued range.

26.92

P/FCF

Alcon AG. (ALC) has a current P/FCF of 26.92. The 5-year average P/FCF is 37.53. The thresholds are as follows: Strongly Undervalued below 20.07, Undervalued between 20.07 and 28.80, Fairly Valued between 46.26 and 28.80, Overvalued between 46.26 and 54.98, and Strongly Overvalued above 54.98. The current Forward P/FCF of 26.92 falls within the Undervalued range.

Alcon AG (ALC) has a current Price-to-Book (P/B) ratio of 1.83. Compared to its 3-year average P/B ratio of 1.94 , the current P/B ratio is approximately -5.50% higher. Relative to its 5-year average P/B ratio of 1.91, the current P/B ratio is about -3.99% higher. Alcon AG (ALC) has a Forward Free Cash Flow (FCF) yield of approximately 3.99%. Compared to its 3-year average FCF yield of 2.02%, the current FCF yield is approximately 97.40% lower. Relative to its 5-year average FCF yield of 1.68% , the current FCF yield is about 137.29% lower.

1.81

P/B

Median3y

1.94

Median5y

1.91

3.99

FCF Yield

Median3y

2.02

Median5y

1.68

Competitors Valuation Multiple

The average P/S ratio for ALC's competitors is 4.49, providing a benchmark for relative valuation. Alcon AG Corp (ALC) exhibits a P/S ratio of 3.76, which is -16.22% 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

GE Healthcare Technologies Inc

Agilent Technologies Inc

Mettler-Toledo International Inc

Performance Decomposition

Market capitalization of ALC decreased by 16.62% 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.

0.57%

2.46B → 2.47B

Revenue Growth

40.24%

10.09 → 14.15

Margin Expansion

-57.43%

87.84 → 37.39

P/E Change

-16.62%