A Discounted Cash Flow, or DCF, model estimates what a business might be worth by projecting its future cash flows and then discounting those back to today using a required rate of return. It is essentially asking what all future cash that shareholders might receive is worth in today\u2019s money.<\/p>\n
For Roche Holding, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month Free Cash Flow is CHF 14.1b. Analyst estimates and subsequent extrapolations by Simply Wall St project Free Cash Flow up to CHF 19.9b in 2030, with interim annual projections between 2026 and 2035 feeding into the calculation.<\/p>\n
When those projected cash flows are discounted back and aggregated, the model arrives at an estimated intrinsic value of CHF 697.98 per share. Compared with the current share price of around CHF 340.80, this implies the stock is 51.2% undervalued according to this DCF framework.<\/p>\n
Result: UNDERVALUED<\/p>\n
Our Discounted Cash Flow (DCF) analysis suggests Roche Holding is undervalued by 51.2%. Track this in your watchlist<\/a> or portfolio<\/a>, or discover 883 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 profitable companies, the P\/E ratio is a useful shortcut because it links what you pay today with the earnings the business is currently generating. Investors usually accept a higher P\/E if they expect stronger growth or see lower risk, while slower growth or higher uncertainty typically aligns with a lower, more conservative P\/E.<\/p>\n Story Continues <\/p>\n Roche Holding is trading on a P\/E of 30.7x. This sits above the Pharmaceuticals industry average P\/E of 23.0x, and below the peer group average of 83.4x. Simply Wall St also calculates a proprietary \u201cFair Ratio\u201d for Roche of 42.0x, which reflects factors such as the company\u2019s earnings growth profile, profit margins, industry, market cap and risk characteristics.<\/p>\n This Fair Ratio approach can be more tailored than a simple comparison with peers or the broad industry, because it adjusts for company specific drivers rather than assuming one size fits all. Set against that Fair Ratio of 42.0x, Roche\u2019s current P\/E of 30.7x is lower. On this metric, this points to the shares being priced below what the model suggests.<\/p>\n Result: UNDERVALUED<\/p>\n P\/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1446 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, which are simply your story about Roche Holding, linked to your own forecast for revenue, earnings and margins, that then connects through to a fair value estimate you can compare directly with today\u2019s price.<\/p>\n On Simply Wall St\u2019s Community page, millions of investors use Narratives to set out their assumptions and see a clear fair value number, then decide whether they view Roche as priced attractively, fully priced, or expensive by comparing that fair value with the live market price.<\/p>\n Narratives update automatically as new information such as news or earnings is added. Your story is therefore not static, and you can quickly see if fresh data supports or challenges the case you have in mind.<\/p>\n For example, one Roche Narrative on the platform applies a fair value of about CHF 302.06, while another sits higher at around CHF 323.28. This shows how two investors, using different views on future growth, margins and discount rates, can reach different but clearly quantified conclusions about what the same shares are worth and what they want to do next.<\/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 reasonably priced at around CHF340.80, the current share price…\n","protected":false},"author":2,"featured_media":7230,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[124],"tags":[3632,962,1103,1105,134,994],"class_list":{"0":"post-8298","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-roche","8":"tag-cash-flow","9":"tag-chf","10":"tag-dcf","11":"tag-free-cash-flow","12":"tag-roche","13":"tag-roche-holding"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/8298","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=8298"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/8298\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/7230"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=8298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=8298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=8298"}],"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 Jan 2026 <\/p>\n<\/a> SWX:ROG P\/E Ratio as at Jan 2026 <\/p>\n
<\/a> SWX:ROG 1-Year Stock Price Chart <\/p>\n