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Dis-Chem Pharmacies Limited (DCP) Fair Value & Analysis

Healthcare · ZA · Market cap 27.6B ZAC

DC Dis-Chem Pharmacies Limited DCP · JSE
PriceR32.20
Fair ValueR24.01
Upside-25.4%
Quality55/100
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Healthy Growth
Thin margins · 2.3% net margin
Low debt · generates free cash flow
Mixed vs. peers (6/14)
Narrow moat 44/100
Evidence: High Range R18.01 – R30.01 Share as image

Fair value as of: Jul 19, 2026

From 26 valuation models · updated 23 days ago

Share price −6.9% over the past month.

A solid business, but screening 25% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (R30.01). The favourable scenario is already priced in.
  • Solid but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

R40.81 R22.38 Fair Value R24.01 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range R22.38 – R40.81 · fair‑value band R18.01 – R30.01 · the R32.20 price screens above the R24.01 fair value. Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Dis-Chem Pharmacies Limited (DCP) currently trades at R32.20, while our model-based Fair Value estimate is R24.01, implying the stock looks roughly 25.4% overvalued today. The Quality Score stands at 55/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Dis-Chem Pharmacies Limited generated revenue of 42.8B ZAR at a net margin of 2.3%. Revenue grew 9.9% year over year. It earns a return on equity of 19.0%. Net debt stands at 6.1B ZAR. Fundamentals as of Jul 19, 2026

Our scenario range runs from R18.01 (bear case) to R30.01 (bull case); at R32.20, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Healthcare peers we cover trades at -15% fair-value upside, at -25%, DCP screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF R16.45 R28.67 R48.83 80
Residual Income R7.44 R9.41 R25.10 76
Rev-Margin DCF R18.54 R33.16 R51.47 74
All 26 models by family
DCF Models
FCF DCF R16.45 R29.42 R51.18 38
Owner Earnings R15.31 R27.44 R47.80 31
5Y Revenue Exit R18.54 R33.54 R53.69 39
5Y EBITDA Exit R27.34 R51.20 R80.81 41
5Y P/E Exit R15.65 R27.75 R41.22 38
10Y Revenue Exit R16.96 R30.86 R51.64 36
10Y EBITDA Exit R23.43 R43.60 R73.76 37
10Y P/E Exit R15.77 R26.68 R41.46 35
Earnings-Based
Graham-Dodd R7.78 R32.74 R44.67 54
Lynch FV R8.32 R11.88 R15.44 50
PEG = 1.0 R8.32 R11.88 R15.44 46
EPV R17.01 R20.04 R22.70 59
Dividend Discount
Gordon GGM R5.62 R11.69 R18.54 70
DDM Multi-Stage R5.62 R9.86 R12.27 61
Multiples
P/E Multiple R18.01 R24.01 R30.01 63
P/S Multiple R14.58 R19.44 R24.30 58
P/B Multiple R14.58 R19.44 R24.30 55
EV/EBIT R28.52 R38.42 R48.33 53
EV/EBITDA R35.88 R48.23 R60.59 54
EV/Revenue R20.02 R29.11 R38.19 43
Asset-Based
NCAV (Graham) R3.30 R4.42 R6.59 50
Growth DCF
Growth DCF R16.45 R28.67 R48.83 80
Rev-Margin DCF R18.54 R33.16 R51.47 74
Economic Profit
Residual Income R7.44 R9.41 R25.10 76
ROIC Compounder R19.17 R25.59 R33.59 72
Growth Earnings
Growth-Adj P/E R14.11 R20.15 R26.20 68

Widest divergence: DCF Models (R29.42) versus Asset-Based (R4.42). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 42.8B ZAC
Revenue growth (YoY) +9.9%
Net margin 2.3%
Return on equity 19.0%
Free cash flow 1.2B ZAC FY2026
P/E ratio 28.2
More key figures
Operating margin 3.4%
EPS (TTM) R1.14
Dividend yield 0.0%
EPS growth (YoY) -42.5%
Net debt 6.1B ZAC FY2026

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 55 · Market factors (momentum, volatility) 43

Profitability 59
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 46
Earnings quality: real cash, not paper profit
Fin. Strength 45
Balance sheet, leverage, solvency risk
Investment 60
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 28
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Dis-Chem Pharmacies Limited, together with its subsidiaries, engages in the retail and wholesale of healthcare products and pharmaceuticals in South Africa. The company operates through two segments, Retail and Wholesale.

Full company description

Dis-Chem Pharmacies Limited, together with its subsidiaries, engages in the retail and wholesale of healthcare products and pharmaceuticals in South Africa. The company operates through two segments, Retail and Wholesale. It owns and operates a chain of retail stores that offers various products, including dispensary, personal care and beauty, healthcare and nutrition, baby care, and other products. The company also provides pharmaceutical, health, and front shop products in the wholesale market. In addition, it offers customer loyalty programs. The company was founded in 1978 and is headquartered in Midrand, South Africa.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Dis-Chem Pharmacies Limited reported revenue of R42.8B in FY2026 versus R30.4B in FY2022, a compound +8.9%/yr. Reported net income was R979M in FY2026, compounding +3.5%/yr from FY2022.

Growth Quality 82/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
42.8B ZAR
Latest YoY
+9.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.3%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.6%
Revenue +8.9%/yr
FY22 R30.4B
FY23 R32.7B
FY24 R36.3B
FY25 R39.2B
FY26 R42.8B
Net income +3.5%/yr
FY22 R853M
FY23 R1.0B
FY24 R984M
FY25 R1.2B
FY26 R979M
Character of growth · EPS growth decomposed (2015-2026) +7.9 % p.a.
Revenue per share +11.1 pp

of which total revenue +11.3 pp · buybacks/dilution −0.2 pp

EBIT margin −2.1 pp
Tax rate +0.6 pp
Residual (interest, one-offs) −1.7 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

DCP screens 25% overvalued. Compare with JD Health International Inc →

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Cite: Fair Value Calculator (2026). "Dis-Chem Pharmacies Limited Fair Value". https://www.fairvalue-calculator.com/stock/DCP

Peer Group

Pharmaceutical Retailers · 62 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 55 · Above median
Fair Value upside −25% · Below median
Return on equity (TTM) 19% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 2% · Above median
Operating margin (TTM) 3% · Above median
Revenue growth 10% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.27× · Higher than median

Valuation Multiples vs Pharmaceutical Retailers median · lower = cheaper

P/E (TTM) 28.2× · Pricier than median
P/B 4.88× · Pricier than 75% of peers
P/S (TTM) 0.64× · Pricier than median
P/FCF 1.4× · Pricier than median
EV/EBITDA 12.5× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 21
FUTURE 50 · sector 18
PAST 76 · sector 18
HEALTH 87 · sector 97
DIVIDEND 0 · sector 63

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Pharmaceutical Retailers stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
JD Health International Inc 6618 HK$39.20 HK$33.28 -15%
Raia Drogasil S.A RADL3 R$18.20 R$15.58 -14%
Yifeng Pharmacy Chain Co 603939 ¥23.43 ¥29.07 +24%
DaShenLin Pharmaceutical Group 603233 ¥18.23 ¥23.86 +31%
Corporativo Fragua, S.A. FRAGUAB 463.00 MXN 821.18 MXN +77%
LBX Pharmacy Chain Joint Stock Company 603883 ¥12.74 ¥10.57 -17%
MedPlus Health Services Limited MEDPLUS ₹690.20 ₹379.25 -45%
Yixintang Pharmaceutical Group 002727 ¥11.46 ¥9.45 -18%
Anhui Huaren Health Pharmaceutical Co 301408 ¥14.40 ¥10.05 -30%
Apotea AB APOTEA kr 74.75 kr 43.95 -41%

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Frequently asked questions

Is Dis-Chem Pharmacies Limited (DCP) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of R24.01 versus a price of R32.20, about −25% (overvalued).
What is the fair value of DCP?
Our model-based fair value for Dis-Chem Pharmacies Limited is R24.01 (as of Jul 19, 2026), built from audited fundamentals. The current price is R32.20.
What is the quality score of DCP?
Dis-Chem Pharmacies Limited has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Dis-Chem Pharmacies Limited (DCP)?
Dis-Chem Pharmacies Limited reported trailing-twelve-month revenue of about 42.8B ZAR (latest available figure, as of Jul 19, 2026).
What is the net profit margin of DCP?
The net profit margin of Dis-Chem Pharmacies Limited is about 2.3%, meaning it keeps roughly 2.3% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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