The Discounted Cash Flow (DCF) model is a widely used method for valuing companies by estimating the future cash flows they will generate and discounting those amounts to reflect their value in today’s terms. This approach provides a forward-looking assessment based on expected company performance and cash generation.<\/p>\n
For Roche Holding, the DCF analysis begins with its latest twelve-month Free Cash Flow (FCF) of CHF 14.1 billion. Analysts forecast that FCF will rise steadily over the years, reaching CHF 19.1 billion in 2029. Since direct analyst projections are available only for the next five years, further figures, such as those for 2030 and beyond, are extrapolated using Simply Wall St’s proprietary models. Throughout the next decade, these projections indicate continued FCF growth in CHF billions.<\/p>\n
By discounting these projected cash flows using a suitable rate, the DCF model estimates an intrinsic value for Roche Holding of CHF 705.80 per share. This suggests the current share price is trading at a 59.3% discount to fair value, indicating a strong case for potential undervaluation based on future cash generation.<\/p>\n
Result: UNDERVALUED<\/p>\n
Our Discounted Cash Flow (DCF) analysis suggests Roche Holding is undervalued by 59.3%. Track this in your watchlist<\/a> or portfolio<\/a>, or discover 899 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 a go-to tool for investors when valuing profitable companies like Roche Holding. It allows you to gauge how much the market is willing to pay for each unit of current earnings, making it especially useful when those earnings are stable and meaningful.<\/p>\n Generally, higher PE ratios reflect expectations for stronger future growth or reduced risk, while lower ratios may signal uncertainty or lower anticipated growth. What counts as a \u201cnormal\u201d PE ratio depends heavily on these factors, as well as on how other companies in the industry are faring.<\/p>\n Currently, Roche Holding trades at a PE ratio of 25.9x. For context, this is slightly above the Pharmaceuticals industry average of 24.0x but well below the peer group average of 76.1x. More importantly, Simply Wall St\u2019s proprietary \u201cFair Ratio\u201d offers an advanced perspective by weighing not just peer and industry trends, but also specific growth forecasts, profit margins, company size, and risk levels. Roche\u2019s Fair PE Ratio is calculated to be 34.3x.<\/p>\n Unlike standard comparisons to industry or peers, the Fair Ratio delivers a tailored benchmark that better represents what investors should reasonably pay for Roche given its characteristics and prospects.<\/p>\n Comparing the actual PE (25.9x) to the Fair Ratio (34.3x) suggests that Roche Holding is undervalued on this measure, signaling potential value for investors looking at earnings-based metrics.<\/p>\n Result: UNDERVALUED<\/p>\n PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1418 companies where insiders are betting big on explosive growth<\/a>.<\/p>\n Earlier we mentioned there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your personal, data-driven story about a company that links what you believe is happening with its business, the numbers you expect in the future, and the fair value you calculate based on those beliefs, all in one place.<\/p>\n Think of Narratives as an easy-to-use tool on Simply Wall St’s Community page, used by millions of investors to articulate their perspective, whether optimistic, cautious, or somewhere in between, by outlining assumptions about Roche Holding\u2019s revenue, profit margins, and future growth. Narratives make investment decisions clearer by directly comparing your Fair Value estimate with the current market price, so you can see when you think it is time to buy or sell.<\/p>\n Best of all, Narratives update automatically whenever important information like earnings announcements or breaking news affects the company, so your view always keeps up with reality. For example, one investor may project major success from Roche\u2019s pipeline and land at a fair value of CHF 438, while another might focus on patent and pricing risks, arriving at CHF 230. This shows how the same company can look like a buy or a hold, simply depending on your personal Narrative.<\/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":"Curious if Roche Holding is offering real value right now? You\u2019re not alone, and there’s more to its…\n","protected":false},"author":2,"featured_media":734,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[124],"tags":[962,1103,1104,134,994],"class_list":{"0":"post-7106","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-roche","8":"tag-chf","9":"tag-dcf","10":"tag-fair-value","11":"tag-roche","12":"tag-roche-holding"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/7106","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=7106"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/7106\/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=7106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=7106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=7106"}],"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 Nov 2025 <\/p>\n<\/a> SWX:ROG PE Ratio as at Nov 2025 <\/p>\n
<\/a> SWX:ROG Community Fair Values as at Nov 2025 <\/p>\n