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Wondering whether Roche Holding’s current share price still offers value, or if most of the opportunity is already priced in? This article walks through the key pieces you need to judge that for yourself.
Roche Holding’s shares recently closed at CHF 350.5, with returns of 1.1% over 7 days, 6.3% over 30 days, 7.7% year to date, 29.6% over 1 year and 35.7% over 3 years. These figures put recent price moves front and center in any assessment of value.
Recent attention has focused on Roche Holding’s position as a major global healthcare group and on how its broad pharmaceuticals and diagnostics portfolio fits into long term demand for treatments and testing. At the same time, investors are weighing how Roche Holding’s established market presence sits alongside newer therapies and competitors, which helps frame the current share price.
On Simply Wall St’s valuation checks, Roche Holding scores 4 out of 6, which suggests the shares screen as undervalued on several measures. Next, we will look at how methods like discounted cash flow, multiples and intrinsic value estimates line up for Roche Holding, then finish with a different way of thinking about valuation that can be even more useful for long term investors.
Find out why Roche Holding’s 29.6% return over the last year is lagging behind its peers.
A Discounted Cash Flow, or DCF, model projects a company’s future cash flows and then discounts them back to today to estimate what the business might be worth now.
For Roche Holding, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flows reported in CHF. The latest twelve month free cash flow is about CHF 14.1b. Analysts provide explicit free cash flow estimates for the next few years, and Simply Wall St extends these projections further, with free cash flow for 2030 estimated at CHF 20.6b.
Bringing all those projected cash flows back to today, the model arrives at an estimated intrinsic value of CHF 734.91 per share. Compared with the recent share price of CHF 350.50, this suggests the shares trade at a 52.3% discount, based on the cash flow assumptions and discount rate used in the model.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Roche Holding is undervalued by 52.3%. Track this in your watchlist or portfolio, or discover 888 more undervalued stocks based on cash flows.
ROG Discounted Cash Flow as at Jan 2026
For a profitable company like Roche Holding, the P/E ratio is a useful way to relate what you pay per share to the earnings that business is currently generating. Investors usually expect higher P/E ratios where they see stronger growth potential and lower risk, and lower P/E ratios where growth expectations are modest or risks are higher.
Roche Holding currently trades on a P/E of 31.61x. That is above the Pharmaceuticals industry average P/E of 22.92x, yet below the peer group average of 84.10x. To refine this comparison, Simply Wall St uses a proprietary “Fair Ratio”, which is the P/E multiple it estimates would be reasonable for Roche Holding after considering factors such as earnings growth, profit margins, industry, market cap and company specific risks.
For Roche Holding, this Fair Ratio is 42.24x, which is higher than the current P/E of 31.61x. Compared with simple peer or industry averages, the Fair Ratio offers a more tailored view because it adjusts for the company’s own characteristics rather than assuming it should look like the typical sector stock. On this basis, Roche Holding’s P/E screens as lower than the Fair Ratio.
Result: UNDERVALUED
SWX:ROG P/E Ratio as at Jan 2026
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Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which let you attach a clear story to your assumptions about Roche Holding’s fair value, future revenue, earnings and margins.
A Narrative is your view of the company written out as a short story, then translated into a financial forecast and, finally, a fair value that you can compare with the current share price.
On Simply Wall St’s Community page, used by millions of investors, Narratives are easy to set up and track. This allows you to see in one place how your expectations connect to the numbers already discussed, such as discounted cash flows and P/E ratios.
Because Narratives update when new information such as news or earnings is added to the platform, they help you quickly reassess whether Roche Holding’s current price still lines up with your Fair Value. This can then guide your decision on how you want to act.
For example, one Roche Holding Narrative might assume very cautious revenue growth and a lower fair value, while another assumes stronger growth with a higher fair value, showing how two investors can look at the same company and reach very different conclusions.
Do you think there’s more to the story for Roche Holding? Head over to our Community to see what others are saying!
SWX:ROG 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ROG.SW.
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