The Discounted Cash Flow model estimates what a company is worth by projecting its future cash flows and then discounting them back into today\u2019s money. For Roche Holding, the model uses a 2 stage Free Cash Flow to Equity approach built on cash flow projections in CHF.<\/p>\n
Roche generated trailing twelve month free cash flow of about CHF 14.1 billion, and analysts expect this to rise steadily as new therapies and diagnostics scale. Simply Wall St combines analyst forecasts for the next few years with extrapolated growth thereafter, leading to projected free cash flow of roughly CHF 19.7 billion by 2029 and continuing to grow modestly into the mid 2030s.<\/p>\n
When all of those future CHF cash flows are discounted back, the model arrives at an estimated intrinsic value of CHF 742.42 per share. Compared with the current share price, this implies the stock is about 56.2% undervalued. This indicates a substantial valuation gap for long term investors who consider the cash flow trajectory to be achievable.<\/p>\n
Result: UNDERVALUED<\/p>\n
Our Discounted Cash Flow (DCF) analysis suggests Roche Holding is undervalued by 56.2%. Track this in your watchlist<\/a> or portfolio<\/a>, or discover 914 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 For a profitable, established business like Roche, the price to earnings ratio is a practical way to gauge how much investors are paying for each unit of current profit. It also tends to reflect the market\u2019s expectations for future growth and the perceived risk of those earnings, with faster growing or lower risk companies typically justifying a higher PE multiple.<\/p>\n Roche currently trades on a PE of about 29.4x, which is above the broader Pharmaceuticals industry average of roughly 22.4x but well below the peer group average of around 80.7x. Simply Wall St\u2019s Fair Ratio framework goes a step further by estimating what PE Roche should reasonably command given its earnings growth outlook, margins, size, industry and risk profile. On that basis, Roche\u2019s Fair Ratio is 36.8x, implying the shares deserve a higher multiple than the market is currently assigning.<\/p>\n Because the Fair Ratio incorporates fundamentals and risk rather than relying solely on blunt peer or industry comparisons, it provides a more tailored benchmark for Roche. With the actual PE sitting below the Fair Ratio, this approach points to the stock being undervalued on an earnings multiple basis.<\/p>\n Result: UNDERVALUED<\/p>\n PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1466 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 us introduce you to Narratives. These are simply your story about a company, translated into numbers like fair value, and future revenue, earnings and margin forecasts, then tracked against the current share price inside the Simply Wall St Community page that millions of investors already use.<\/p>\n A Narrative links what you believe about Roche Holding\u2019s strategy, pipeline, risks and competitive position to a concrete financial forecast and therefore to a fair value estimate. This can make it much easier to decide whether today looks like a buy, sell or hold when you compare that fair value to the live market price.<\/p>\n Narratives are dynamic. They automatically update your fair value view when new information such as earnings, trial results or major news flows through, so your decision making framework keeps evolving without you having to rebuild your model from scratch each time.<\/p>\n For example, one Roche Narrative on the platform might assume steady mid single digit revenue growth and expanding margins, and arrive at a fair value around CHF 323 per share. A more cautious Narrative might lean on slower growth and more pressure on profitability and land closer to CHF 302. This demonstrates how different but clearly defined perspectives can coexist and guide more deliberate investment choices.<\/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":"If you are wondering whether Roche Holding is still an attractive opportunity after its recent run, or whether…\n","protected":false},"author":2,"featured_media":734,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[124],"tags":[3632,1103,1105,134,994],"class_list":{"0":"post-5797","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-roche","8":"tag-cash-flow","9":"tag-dcf","10":"tag-free-cash-flow","11":"tag-roche","12":"tag-roche-holding"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/5797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=5797"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/5797\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/734"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=5797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=5797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=5797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"ROG](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/02\/6a0661c6ded33284563aa5117989c122.png\")
<\/a> ROG Discounted Cash Flow as at Dec 2025 <\/p>\n<\/a> SWX:ROG PE Ratio as at Dec 2025 <\/p>\n
<\/a> SWX:ROG 1-Year Stock Price Chart <\/p>\n