The Discounted Cash Flow (DCF) model estimates the present value of a company by projecting its future free cash flows and discounting them back to today. This approach provides investors with an intrinsic value based on expected performance, rather than just current market trends.<\/p>\n
For Roche Holding, the company\u2019s last twelve months of Free Cash Flow came to CHF 14.08 billion. Analysts expect Roche\u2019s free cash flow to steadily grow, with projections reaching CHF 19.07 billion by 2029. While detailed analyst estimates are typically available for the next five years, projections beyond that are extended by Simply Wall St based on historical growth patterns and industry assumptions.<\/p>\n
Using the two-stage Free Cash Flow to Equity model, this DCF analysis results in an estimated intrinsic value of CHF 707.10 per share. This suggests the stock is currently trading at a significant 63.2 percent discount relative to its estimated worth, indicating that investors may be undervaluing Roche\u2019s future cash-generating potential.<\/p>\n
Result: UNDERVALUED<\/p>\n
Our Discounted Cash Flow (DCF) analysis suggests Roche Holding is undervalued by 63.2%. Track this in your watchlist<\/a> or portfolio<\/a>, or discover 848 more undervalued stocks based on cash flows<\/a>.<\/p>\n Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Roche Holding.<\/a><\/p>\n The Price-to-Earnings (PE) ratio is widely regarded as a suitable valuation tool for profitable companies like Roche Holding. It allows investors to measure how much they are paying for each unit of the company\u2019s earnings, providing a quick gauge of whether a stock might be undervalued or overvalued relative to its profitability.<\/p>\n What qualifies as a normal or fair PE ratio can depend heavily on growth expectations and perceived risk. Companies growing earnings at a healthy pace often warrant higher PE ratios. In contrast, those with limited growth or higher risk usually trade at lower ratios. Thus, it is important to look past the headline number and consider what is driving it.<\/p>\n Currently, Roche Holding\u2019s PE ratio stands at 23.48x. When we look at benchmarks, this figure is slightly below the Pharmaceuticals industry average of 24.31x and notably below the peer group average of 73.32x. Simply Wall St also calculates a \u201cFair Ratio\u201d for Roche at 32.86x, which reflects a fair multiple considering the company\u2019s earnings growth, industry dynamics, profit margin, market capitalization, and risk profile.<\/p>\n The Fair Ratio provides a more tailored metric than industry or peer comparisons because it accounts for factors specific to Roche, rather than applying broad averages which may not reflect the company\u2019s actual circumstances. It incorporates not just growth or size, but the unique risks and profitability that set Roche apart from the pack.<\/p>\n Comparing Roche\u2019s current PE ratio of 23.48x to its Fair Ratio of 32.86x, the stock appears to be undervalued on this basis.<\/p>\n Result: UNDERVALUED<\/p>\n PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1382 companies where insiders are betting big on explosive growth<\/a>.<\/p>\n Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your story or perspective about a company’s future, expressed through your own forecasts for things like fair value, future revenue, earnings, and profit margins. Rather than relying solely on market multiples or consensus figures, Narratives help you link Roche Holding\u2019s business story directly to a customized financial forecast, and then to your own fair value estimate.<\/p>\n Narratives are easy to use and available to everyone within the Simply Wall St Community page, where millions of investors share their viewpoints. With a Narrative, you can see how a company\u2019s unfolding story justifies your investment decision and compare your calculated fair value to the current price to decide whether it is time to buy, hold, or sell. In addition, Narratives are updated automatically as new financial results or major news arrives, keeping your valuation fresh in real time.<\/p>\n For example, one Narrative might see Roche Holding\u2019s strong diagnostics pipeline and automation boosting profit margins, supporting a higher fair value of CHF438.0. Another investor, more cautious about healthcare pricing reforms and R&D risks, sets a conservative fair value at CHF230.0.<\/p>\n Do you think there’s more to the story for Roche Holding? Head over to our Community to see what others are saying!<\/a><\/p>\n 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.<\/p>\n Companies discussed in this article include ROG.SW<\/a>.<\/p>\n Have feedback on this article? Concerned about the content? Get in touch<\/a> with us directly. Alternatively, email editorial-team@simplywallst.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Wondering if Roche Holding might be a hidden gem in today\u2019s market? 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<\/a> ROG Discounted Cash Flow as at Oct 2025 <\/p>\n<\/a> SWX:ROG PE Ratio as at Oct 2025 <\/p>\n
<\/a> SWX:ROG Community Fair Values as at Oct 2025 <\/p>\n