TEVA PE Ratio & Valuation,Is TEVA Overvalued

TEVA Relative Valuation

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

Historical Valuation

Teva Pharmaceutical Industries Ltd (TEVA) is now in the Overvalued zone, suggesting that its current forward PS ratio of 2.02 is considered Overvalued compared with the five-year average of 4.70. The fair price of Teva Pharmaceutical Industries Ltd (TEVA) is between 12.89 to 20.30 according to relative valuation methord. Compared to the current price of 29.79 USD , Teva Pharmaceutical Industries Ltd is Overvalued By 46.76%.

Relative Value

Fair Zone

12.89-20.30

Current Price：29.79

46.76%

Overvalued

0.00

9.81

EV/EBITDA

Teva Pharmaceutical Industries Ltd. (TEVA) has a current EV/EBITDA of 9.81. The 5-year average EV/EBITDA is 6.94. The thresholds are as follows: Strongly Undervalued below 5.76, Undervalued between 5.76 and 6.35, Fairly Valued between 7.53 and 6.35, Overvalued between 7.53 and 8.12, and Strongly Overvalued above 8.12. The current Forward EV/EBITDA of 9.81 falls within the Strongly Overvalued range.

10.86

EV/EBIT

Teva Pharmaceutical Industries Ltd. (TEVA) has a current EV/EBIT of 10.86. The 5-year average EV/EBIT is 7.81. The thresholds are as follows: Strongly Undervalued below 6.49, Undervalued between 6.49 and 7.15, Fairly Valued between 8.47 and 7.15, Overvalued between 8.47 and 9.13, and Strongly Overvalued above 9.13. The current Forward EV/EBIT of 10.86 falls within the Strongly Overvalued range.

2.02

Teva Pharmaceutical Industries Ltd. (TEVA) has a current PS of 2.02. The 5-year average PS is 0.86. The thresholds are as follows: Strongly Undervalued below 0.28, Undervalued between 0.28 and 0.57, Fairly Valued between 1.16 and 0.57, Overvalued between 1.16 and 1.45, and Strongly Overvalued above 1.45. The current Forward PS of 2.02 falls within the Strongly Overvalued range.

8.95

P/OCF

Teva Pharmaceutical Industries Ltd. (TEVA) has a current P/OCF of 8.95. The 5-year average P/OCF is 11.74. The thresholds are as follows: Strongly Undervalued below -11.00, Undervalued between -11.00 and 0.37, Fairly Valued between 23.10 and 0.37, Overvalued between 23.10 and 34.47, and Strongly Overvalued above 34.47. The current Forward P/OCF of 8.95 falls within the Historic Trend Line -Fairly Valued range.

10.12

P/FCF

Teva Pharmaceutical Industries Ltd. (TEVA) has a current P/FCF of 10.12. The 5-year average P/FCF is 5.84. The thresholds are as follows: Strongly Undervalued below 1.46, Undervalued between 1.46 and 3.65, Fairly Valued between 8.03 and 3.65, Overvalued between 8.03 and 10.22, and Strongly Overvalued above 10.22. The current Forward P/FCF of 10.12 falls within the Overvalued range.

Teva Pharmaceutical Industries Ltd (TEVA) has a current Price-to-Book (P/B) ratio of 4.71. Compared to its 3-year average P/B ratio of 2.43 , the current P/B ratio is approximately 93.94% higher. Relative to its 5-year average P/B ratio of 1.88, the current P/B ratio is about 151.20% higher. Teva Pharmaceutical Industries Ltd (TEVA) has a Forward Free Cash Flow (FCF) yield of approximately 1.69%. Compared to its 3-year average FCF yield of 6.10%, the current FCF yield is approximately -72.28% lower. Relative to its 5-year average FCF yield of 4.81% , the current FCF yield is about -64.85% lower.

4.71

P/B

Median3y

2.43

Median5y

1.88

1.69

FCF Yield

Median3y

6.10

Median5y

4.81

Competitors Valuation Multiple

The average P/S ratio for TEVA's competitors is 2.02, providing a benchmark for relative valuation. Teva Pharmaceutical Industries Ltd Corp (TEVA) exhibits a P/S ratio of 2.02, which is 0% above the industry average. Given its robust revenue growth of 3.42%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TEVA increased by 35.16% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 14.22 to 48.27.

The secondary factor is the Revenue Growth, contributed 3.42%to the performance.

Overall, the performance of TEVA in the past 1 year is driven by P/E Change. Which is more unsustainable.

3.42%

4.33B → 4.48B

Revenue Growth

-207.67%

-9.00 → 9.69

Margin Expansion

239.41%

14.22 → 48.27

P/E Change

35.16%

22.04 → 29.79

Mkt Cap Growth

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Frequently Asked Questions

Is Teva Pharmaceutical Industries Ltd (TEVA) currently overvalued or undervalued?

What is Teva Pharmaceutical Industries Ltd (TEVA) fair value?

TEVA'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 Teva Pharmaceutical Industries Ltd (TEVA) is between 12.89 to 20.30 according to relative valuation methord.

How does TEVA's valuation metrics compare to the industry average?

The average P/S ratio for TEVA's competitors is 2.02, providing a benchmark for relative valuation. Teva Pharmaceutical Industries Ltd Corp (TEVA) exhibits a P/S ratio of 2.02, which is 0.00% above the industry average. Given its robust revenue growth of 3.42%, this premium appears unsustainable.

What is the current P/B ratio for Teva Pharmaceutical Industries Ltd (TEVA) as of Dec 15 2025?

As of Dec 15 2025, Teva Pharmaceutical Industries Ltd (TEVA) has a P/B ratio of 4.71. This indicates that the market values TEVA at 4.71 times its book value.

What is the current FCF Yield for Teva Pharmaceutical Industries Ltd (TEVA) as of Dec 15 2025?

As of Dec 15 2025, Teva Pharmaceutical Industries Ltd (TEVA) has a FCF Yield of 1.69%. This means that for every dollar of Teva Pharmaceutical Industries Ltd’s market capitalization, the company generates 1.69 cents in free cash flow.

What is the current Forward P/E ratio for Teva Pharmaceutical Industries Ltd (TEVA) as of Dec 15 2025?

As of Dec 15 2025, Teva Pharmaceutical Industries Ltd (TEVA) has a Forward P/E ratio of 11.55. This means the market is willing to pay $11.55 for every dollar of Teva Pharmaceutical Industries Ltd’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Teva Pharmaceutical Industries Ltd (TEVA) as of Dec 15 2025?

As of Dec 15 2025, Teva Pharmaceutical Industries Ltd (TEVA) has a Forward P/S ratio of 2.02. This means the market is valuing TEVA at $2.02 for every dollar of expected revenue over the next 12 months.

TEVA Valuation