TAK Valuation

Takeda Pharmaceutical Co Ltd

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14.310

-0.15(-1.037%)1D

Overview
Forecast
Valuation
Earnings

TAK Relative Valuation

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

Historical Valuation

Takeda Pharmaceutical Co Ltd (TAK) is now in the Fair zone, suggesting that its current forward PE ratio of 25.24 is considered Fairly compared with the five-year average of 27.11. The fair price of Takeda Pharmaceutical Co Ltd (TAK) is between 9.25 to 21.01 according to relative valuation methord.

Relative Value

Fair Zone

9.25-21.01

Current Price：14.46

Fair

25.37

Trailing

Forward

9.17

EV/EBITDA

Takeda Pharmaceutical Co Ltd. (TAK) has a current EV/EBITDA of 9.17. The 5-year average EV/EBITDA is 9.38. The thresholds are as follows: Strongly Undervalued below 7.06, Undervalued between 7.06 and 8.22, Fairly Valued between 10.54 and 8.22, Overvalued between 10.54 and 11.69, and Strongly Overvalued above 11.69. The current Forward EV/EBITDA of 9.17 falls within the Historic Trend Line -Fairly Valued range.

23.89

EV/EBIT

Takeda Pharmaceutical Co Ltd. (TAK) has a current EV/EBIT of 23.89. The 5-year average EV/EBIT is 25.83. The thresholds are as follows: Strongly Undervalued below 9.32, Undervalued between 9.32 and 17.58, Fairly Valued between 34.09 and 17.58, Overvalued between 34.09 and 42.34, and Strongly Overvalued above 42.34. The current Forward EV/EBIT of 23.89 falls within the Historic Trend Line -Fairly Valued range.

1.50

Takeda Pharmaceutical Co Ltd. (TAK) has a current PS of 1.50. The 5-year average PS is 1.59. The thresholds are as follows: Strongly Undervalued below 1.29, Undervalued between 1.29 and 1.44, Fairly Valued between 1.75 and 1.44, Overvalued between 1.75 and 1.90, and Strongly Overvalued above 1.90. The current Forward PS of 1.50 falls within the Historic Trend Line -Fairly Valued range.

6.29

P/OCF

Takeda Pharmaceutical Co Ltd. (TAK) has a current P/OCF of 6.29. The 5-year average P/OCF is 6.81. The thresholds are as follows: Strongly Undervalued below 5.66, Undervalued between 5.66 and 6.23, Fairly Valued between 7.38 and 6.23, Overvalued between 7.38 and 7.95, and Strongly Overvalued above 7.95. The current Forward P/OCF of 6.29 falls within the Historic Trend Line -Fairly Valued range.

8.59

P/FCF

Takeda Pharmaceutical Co Ltd. (TAK) has a current P/FCF of 8.59. The 5-year average P/FCF is 9.74. The thresholds are as follows: Strongly Undervalued below 3.83, Undervalued between 3.83 and 6.79, Fairly Valued between 12.69 and 6.79, Overvalued between 12.69 and 15.64, and Strongly Overvalued above 15.64. The current Forward P/FCF of 8.59 falls within the Historic Trend Line -Fairly Valued range.

Takeda Pharmaceutical Co Ltd (TAK) has a current Price-to-Book (P/B) ratio of 0.49. Compared to its 3-year average P/B ratio of 0.91 , the current P/B ratio is approximately -45.69% higher. Relative to its 5-year average P/B ratio of 0.98, the current P/B ratio is about -49.37% higher. Takeda Pharmaceutical Co Ltd (TAK) has a Forward Free Cash Flow (FCF) yield of approximately 13.37%. Compared to its 3-year average FCF yield of 11.67%, the current FCF yield is approximately 14.50% lower. Relative to its 5-year average FCF yield of 13.16% , the current FCF yield is about 1.57% lower.

0.50

P/B

Median3y

0.91

Median5y

0.98

13.37

FCF Yield

Median3y

11.67

Median5y

13.16

Competitors Valuation Multiple

The average P/S ratio for TAK's competitors is 3.27, providing a benchmark for relative valuation. Takeda Pharmaceutical Co Ltd Corp (TAK) exhibits a P/S ratio of 1.50, which is -54.26% above the industry average. Given its robust revenue growth of -8.39%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

TAK.N

Takeda Pharmaceutical Co Ltd

Dr Reddy's Laboratories Ltd

Performance Decomposition

Market capitalization of TAK increased by 2.65% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 7.89 to 11.23.

The secondary factor is the Revenue Growth, contributed -8.39%to the performance.

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

-8.39%

1.21T → 1.11T

Revenue Growth

42.33%

7.89 → 11.23

Margin Expansion

-31.29%

37.28 → 25.62

P/E Change

2.65%