AZN Valuation

AstraZeneca PLC

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76.590

+2.61(3.528%)1D

Overview
Forecast
Valuation
Earnings

AZN Relative Valuation

AZN'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, AZN is overvalued; if below, it's undervalued.

Historical Valuation

AstraZeneca PLC (AZN) is now in the Fair zone, suggesting that its current forward PE ratio of 16.08 is considered Fairly compared with the five-year average of 18.04. The fair price of AstraZeneca PLC (AZN) is between 72.12 to 94.72 according to relative valuation methord.

Relative Value

Fair Zone

72.12-94.72

Current Price：76.25

Fair

15.87

Trailing

Forward

12.11

EV/EBITDA

AstraZeneca PLC. (AZN) has a current EV/EBITDA of 12.11. The 5-year average EV/EBITDA is 14.22. The thresholds are as follows: Strongly Undervalued below 11.15, Undervalued between 11.15 and 12.68, Fairly Valued between 15.76 and 12.68, Overvalued between 15.76 and 17.29, and Strongly Overvalued above 17.29. The current Forward EV/EBITDA of 12.11 falls within the Undervalued range.

12.87

EV/EBIT

AstraZeneca PLC. (AZN) has a current EV/EBIT of 12.87. The 5-year average EV/EBIT is 15.02. The thresholds are as follows: Strongly Undervalued below 11.76, Undervalued between 11.76 and 13.39, Fairly Valued between 16.65 and 13.39, Overvalued between 16.65 and 18.28, and Strongly Overvalued above 18.28. The current Forward EV/EBIT of 12.87 falls within the Undervalued range.

3.86

AstraZeneca PLC. (AZN) has a current PS of 3.86. The 5-year average PS is 4.27. The thresholds are as follows: Strongly Undervalued below 3.41, Undervalued between 3.41 and 3.84, Fairly Valued between 4.70 and 3.84, Overvalued between 4.70 and 5.12, and Strongly Overvalued above 5.12. The current Forward PS of 3.86 falls within the Historic Trend Line -Fairly Valued range.

15.54

P/OCF

AstraZeneca PLC. (AZN) has a current P/OCF of 15.54. The 5-year average P/OCF is 18.48. The thresholds are as follows: Strongly Undervalued below 14.30, Undervalued between 14.30 and 16.39, Fairly Valued between 20.56 and 16.39, Overvalued between 20.56 and 22.65, and Strongly Overvalued above 22.65. The current Forward P/OCF of 15.54 falls within the Undervalued range.

22.71

P/FCF

AstraZeneca PLC. (AZN) has a current P/FCF of 22.71. The 5-year average P/FCF is 24.89. The thresholds are as follows: Strongly Undervalued below 17.79, Undervalued between 17.79 and 21.34, Fairly Valued between 28.44 and 21.34, Overvalued between 28.44 and 31.99, and Strongly Overvalued above 31.99. The current Forward P/FCF of 22.71 falls within the Historic Trend Line -Fairly Valued range.

AstraZeneca PLC (AZN) has a current Price-to-Book (P/B) ratio of 5.63. Compared to its 3-year average P/B ratio of 5.59 , the current P/B ratio is approximately 0.65% higher. Relative to its 5-year average P/B ratio of 6.57, the current P/B ratio is about -14.39% higher. AstraZeneca PLC (AZN) has a Forward Free Cash Flow (FCF) yield of approximately 4.83%. Compared to its 3-year average FCF yield of 4.20%, the current FCF yield is approximately 15.05% lower. Relative to its 5-year average FCF yield of 3.68% , the current FCF yield is about 31.33% lower.

5.32

P/B

Median3y

5.59

Median5y

6.57

4.84

FCF Yield

Median3y

4.20

Median5y

3.68

Competitors Valuation Multiple

The average P/S ratio for AZN's competitors is 4.26, providing a benchmark for relative valuation. AstraZeneca PLC Corp (AZN) exhibits a P/S ratio of 3.86, which is -9.41% above the industry average. Given its robust revenue growth of 11.74%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Vertex Pharmaceuticals Inc

Performance Decomposition

Market capitalization of AZN decreased by 5.96% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 14.90 to 16.93.

The secondary factor is the Revenue Growth, contributed 11.74%to the performance.

Overall, the performance of AZN in the past 1 year is driven by Margin Expansion. Which is more sustainable.

11.74%

12.94B → 14.46B

Revenue Growth

13.62%

14.90 → 16.93

Margin Expansion

-31.32%

42.12 → 28.93

P/E Change

-5.96%