A Discounted Cash Flow (DCF) model estimates a company\u2019s intrinsic value by projecting its future cash flows and discounting them back to today\u2019s value. This helps investors judge whether a stock is trading above or below its real worth based on expected future performance rather than just current earnings.<\/p>\n
For Roche Holding, the DCF model starts with the company\u2019s latest reported Free Cash Flow of CHF 14.08 billion. Analysts provide forecasts for the next five years, projecting cash flow growth to CHF 19.15 billion by 2029. Beyond that, estimates are extrapolated to suggest Roche\u2019s Free Cash Flow could approach CHF 21.75 billion by 2035, all in Swiss francs (CHF).<\/p>\n
Using the 2 Stage Free Cash Flow to Equity model, the resulting estimated intrinsic value for Roche’s shares is CHF 709.39. This figure reflects a 56.4% discount to the recent market price. This indicates that the stock is currently significantly undervalued under this approach.<\/p>\n
Result: UNDERVALUED<\/p>\n
Our Discounted Cash Flow (DCF) analysis suggests Roche Holding is undervalued by 56.4%. Track this in your watchlist<\/a> or portfolio<\/a>, or discover 927 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 the preferred multiple for valuing profitable companies like Roche Holding because it reflects how much investors are willing to pay for each unit of the company’s current earnings. This is particularly useful for established firms with steady profits, as it links stock price with earnings performance in a single figure.<\/p>\n The “normal” or “fair” PE ratio for a stock is shaped by expectations for future growth and the risks faced by the business. Fast-growing companies often command higher PE ratios, while those with greater risks or slower expected growth usually trade at a discount. Sector dynamics and overall market sentiment also factor in.<\/p>\n Roche Holding currently trades at a PE ratio of 27.87x. Compared with the Pharmaceuticals industry average of 22.74x, Roche\u2019s multiple sits above the sector norm. It is even further below the peer average, which stands at a steep 78.94x, highlighting some premium valuations among comparable firms. However, looking only at industry averages and peers can miss company-specific stories.<\/p>\n This is where Simply Wall St\u2019s Fair Ratio comes in. Calculated as 36.20x for Roche Holding, the Fair Ratio takes into account unique factors such as earnings growth prospects, profit margins, risk profile, industry dynamics, and market cap. Unlike broader averages, it aims to reflect what investors should reasonably pay for Roche, given its individual qualities.<\/p>\n Considering Roche\u2019s actual PE of 27.87x and its Fair Ratio of 36.20x, the stock appears modestly undervalued on this basis. It is trading below what would be expected for a company with its characteristics and outlook.<\/p>\n Result: UNDERVALUED<\/p>\n PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 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. Let us introduce you to Narratives. A Narrative is Simply Wall St\u2019s approach to connecting a company\u2019s story, your unique perspective on its future, with a real financial forecast and a fair value estimate, all in one dynamic tool.<\/p>\n With Narratives, investors move beyond static ratios and market commentary by mapping their assumptions about key drivers like revenue growth, profit margins, and valuation multiples directly into a model that calculates what they believe is a reasonable price for the company. Narratives link the company\u2019s business story and major catalysts to expected future performance, turning what you know or believe about Roche Holding into a clear, actionable valuation.<\/p>\n Best of all, Narratives are easy to use and accessible right within the Community page on Simply Wall St\u2019s platform, where millions of investors share and debate their perspectives. You can quickly compare your Narrative\u2019s fair value to the latest share price and decide whether Roche is a buy, hold, or sell for you, all while keeping tabs on how the story shifts as new earnings or news arrive, because Narratives update in real time.<\/p>\n For example, one Narrative on Roche may reflect strong faith in the company\u2019s oncology pipeline and global market expansion, resulting in a fair value of CHF 438.00. Another, seeing patent risks and regulatory headwinds, may set a more conservative fair value at CHF 230.00.<\/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":"Ever wondered if Roche Holding is trading at a bargain or a premium? 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<\/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 Community Fair Values as at Dec 2025 <\/p>\n