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 23.60 is considered Undervalued compared with the five-year average of 29.35. The fair price of Alcon AG (ALC) is between 85.18 to 107.32 according to relative valuation methord. Compared to the current price of 80.65 USD , Alcon AG is Undervalued By 5.32%.
Relative Value
Fair Zone
85.18-107.32
Current Price：80.65
5.32%
Undervalued
23.60
PE
1Y
3Y
5Y
14.99
EV/EBITDA
Alcon AG. (ALC) has a current EV/EBITDA of 14.99. The 5-year average EV/EBITDA is 17.71. The thresholds are as follows: Strongly Undervalued below 13.75, Undervalued between 13.75 and 15.73, Fairly Valued between 19.69 and 15.73, Overvalued between 19.69 and 21.66, and Strongly Overvalued above 21.66. The current Forward EV/EBITDA of 14.99 falls within the Undervalued range.
19.32
EV/EBIT
Alcon AG. (ALC) has a current EV/EBIT of 19.32. The 5-year average EV/EBIT is 22.76. The thresholds are as follows: Strongly Undervalued below 17.02, Undervalued between 17.02 and 19.89, Fairly Valued between 25.63 and 19.89, Overvalued between 25.63 and 28.50, and Strongly Overvalued above 28.50. The current Forward EV/EBIT of 19.32 falls within the Undervalued range.
3.58
PS
Alcon AG. (ALC) has a current PS of 3.58. The 5-year average PS is 4.09. The thresholds are as follows: Strongly Undervalued below 3.30, Undervalued between 3.30 and 3.70, Fairly Valued between 4.49 and 3.70, Overvalued between 4.49 and 4.88, and Strongly Overvalued above 4.88. The current Forward PS of 3.58 falls within the Undervalued range.
17.26
P/OCF
Alcon AG. (ALC) has a current P/OCF of 17.26. The 5-year average P/OCF is 21.22. The thresholds are as follows: Strongly Undervalued below 15.44, Undervalued between 15.44 and 18.33, Fairly Valued between 24.11 and 18.33, Overvalued between 24.11 and 26.99, and Strongly Overvalued above 26.99. The current Forward P/OCF of 17.26 falls within the Undervalued range.
25.23
P/FCF
Alcon AG. (ALC) has a current P/FCF of 25.23. The 5-year average P/FCF is 35.50. The thresholds are as follows: Strongly Undervalued below 19.09, Undervalued between 19.09 and 27.30, Fairly Valued between 43.71 and 27.30, Overvalued between 43.71 and 51.91, and Strongly Overvalued above 51.91. The current Forward P/FCF of 25.23 falls within the Undervalued range.
Alcon AG (ALC) has a current Price-to-Book (P/B) ratio of 1.73. Compared to its 3-year average P/B ratio of 1.95 , the current P/B ratio is approximately -11.68% higher. Relative to its 5-year average P/B ratio of 1.92, the current P/B ratio is about -10.04% higher. Alcon AG (ALC) has a Forward Free Cash Flow (FCF) yield of approximately 3.94%. Compared to its 3-year average FCF yield of 2.50%, the current FCF yield is approximately 57.77% lower. Relative to its 5-year average FCF yield of 1.93% , the current FCF yield is about 104.70% lower.
1.73
P/B
Median3y
1.95
Median5y
1.92
3.94
FCF Yield
Median3y
2.50
Median5y
1.93
Competitors Valuation Multiple
The average P/S ratio for ALC's competitors is 3.96, providing a benchmark for relative valuation. Alcon AG Corp (ALC) exhibits a P/S ratio of 3.58, which is -9.42% above the industry average. Given its robust revenue growth of 6.52%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ALC decreased by 10.19% 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 -1.32%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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Frequently Asked Questions
Is Alcon AG (ALC) currently overvalued or undervalued?
Alcon AG (ALC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 23.60 is considered Undervalued compared with the five-year average of 29.35. The fair price of Alcon AG (ALC) is between 85.18 to 107.32 according to relative valuation methord. Compared to the current price of 80.65 USD , Alcon AG is Undervalued By 5.32% .
What is Alcon AG (ALC) fair value?
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. The fair price of Alcon AG (ALC) is between 85.18 to 107.32 according to relative valuation methord.
How does ALC's valuation metrics compare to the industry average?
The average P/S ratio for ALC's competitors is 3.96, providing a benchmark for relative valuation. Alcon AG Corp (ALC) exhibits a P/S ratio of 3.58, which is -9.42% above the industry average. Given its robust revenue growth of 6.52%, this premium appears unsustainable.
What is the current P/B ratio for Alcon AG (ALC) as of Jan 07 2026?
As of Jan 07 2026, Alcon AG (ALC) has a P/B ratio of 1.73. This indicates that the market values ALC at 1.73 times its book value.
What is the current FCF Yield for Alcon AG (ALC) as of Jan 07 2026?
As of Jan 07 2026, Alcon AG (ALC) has a FCF Yield of 3.94%. This means that for every dollar of Alcon AG’s market capitalization, the company generates 3.94 cents in free cash flow.
What is the current Forward P/E ratio for Alcon AG (ALC) as of Jan 07 2026?
As of Jan 07 2026, Alcon AG (ALC) has a Forward P/E ratio of 23.60. This means the market is willing to pay $23.60 for every dollar of Alcon AG’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Alcon AG (ALC) as of Jan 07 2026?
As of Jan 07 2026, Alcon AG (ALC) has a Forward P/S ratio of 3.58. This means the market is valuing ALC at $3.58 for every dollar of expected revenue over the next 12 months.