EN DE

Lonza Group (LONN) Fair Value & Analysis

Healthcare · CH · Market cap CHF 39.7B

LG Lonza Group LONN · SW
PriceCHF 572.20
Fair ValueCHF 259.80
Upside-54.6%
Quality55/100
Watch Lonza Group for free, get notified when fair value or trend changes. Watch for free
Expensive Growth
Loss-making · -4.2% net margin
Low debt · negative free cash flow
0.87% dividend yield
Trails peers (5/14)
Moderate moat 46/100
Evidence: High Range CHF 181.86 – CHF 337.74 Share as image

Fair value as of: Jul 19, 2026

From 17 valuation models · updated 21 days ago

Share price −0.1% over the past month.

A solid business, but screening 55% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (CHF 337.74). 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.
  • A fairly wide model range (CHF 181.86 to CHF 337.74) leaves room in how you read the outcome.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

CHF 756.42 CHF 303.80 Fair Value CHF 259.80 May 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 CHF 303.80 – CHF 756.42 · fair‑value band CHF 181.86 – CHF 337.74 · the CHF 572.20 price screens above the CHF 259.80 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Lonza Group (LONN) currently trades at CHF 572.20, while our model-based Fair Value estimate is CHF 259.80, implying the stock looks roughly 54.6% 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, Lonza Group generated revenue of CHF 6.5B at a net margin of -4.2%. Revenue grew 17.0% year over year. It earns a return on equity of 10.5%. Net debt stands at CHF 3.5B. Fundamentals as of Jul 19, 2026

Our scenario range runs from CHF 181.86 (bear case) to CHF 337.74 (bull case); at CHF 572.20, 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. The share trades about 3% below its 52-week high and 27% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -48% fair-value upside, at -55%, LONN 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 BearBaseBull Evidence
Highest evidence
Residual Income CHF 116.13 CHF 130.14 CHF 217.15 76
ROIC Compounder CHF 117.07 CHF 151.69 CHF 201.79 72
Gordon GGM CHF 36.81 CHF 76.53 CHF 121.41 70
All 17 models by family
DCF Models
Owner Earnings CHF 17.36 CHF 50.97 CHF 101.69 31
Earnings-Based
Graham-Dodd CHF 92.39 CHF 275.54 CHF 364.86 54
Lynch FV CHF 58.21 CHF 83.15 CHF 108.10 50
PEG = 1.0 CHF 58.21 CHF 83.15 CHF 108.10 46
EPV CHF 117.07 CHF 144.11 CHF 167.77 59
Dividend Discount
Gordon GGM CHF 36.81 CHF 76.53 CHF 121.41 70
DDM Multi-Stage CHF 36.81 CHF 59.74 CHF 80.32 61
Multiples
P/E Multiple CHF 224.19 CHF 298.92 CHF 373.65 63
P/S Multiple CHF 173.24 CHF 230.99 CHF 288.73 58
P/B Multiple CHF 173.24 CHF 230.99 CHF 288.73 55
EV/EBIT CHF 207.08 CHF 291.18 CHF 375.27 53
EV/EBITDA CHF 284.78 CHF 394.78 CHF 504.77 54
EV/Revenue CHF 134.86 CHF 212.03 CHF 289.20 43
Asset-Based
NCAV (Graham) CHF 65.39 CHF 87.62 CHF 130.78 50
Economic Profit
Residual Income CHF 116.13 CHF 130.14 CHF 217.15 76
ROIC Compounder CHF 117.07 CHF 151.69 CHF 201.79 72
Growth Earnings
Growth-Adj P/E CHF 181.86 CHF 259.80 CHF 337.74 68

Widest divergence: Growth Earnings (CHF 259.80) versus DCF Models (CHF 50.97). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) CHF 6.5B
Revenue growth (YoY) +17.0%
Net margin -4.2%
Return on equity 10.5%
Free cash flow −CHF 204M FY2025
P/E ratio 43.7
More key figures
Operating margin 21.4%
EPS (TTM) CHF 13.00
Dividend yield 0.9%
EPS growth (YoY) +31.7%
Net debt CHF 3.5B FY2025

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 53 · Market factors (momentum, volatility) 62

Profitability 38
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 30
Earnings quality: real cash, not paper profit
Fin. Strength 64
Balance sheet, leverage, solvency risk
Investment 62
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 53
Price trend over the last 3–12 months (market factor)
52W Momentum 61
Distance to the 52-week high (market factor)
Net Issuance 98
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

Lonza Group AG, together with its subsidiaries, operates as a contract development and manufacturing organization for pharma and biotech companies in Europe, North and Central America, Latin America, Asia, Australia, New Zealand, and internationally. It operates through Integrated Biologics; Advanced Synthesis; and Specialized Modalities segments.

Full company description

Lonza Group AG, together with its subsidiaries, operates as a contract development and manufacturing organization for pharma and biotech companies in Europe, North and Central America, Latin America, Asia, Australia, New Zealand, and internationally. It operates through Integrated Biologics; Advanced Synthesis; and Specialized Modalities segments. The Integrated Biologics segment offers CDMO biologics services from clinical development, drug substance, and drug product manufacturing; and operates mammalian and drug product platforms. Its Advanced Synthesis segment manufactures antibody-drug conjugates (ADCs) and other bioconjugates, small molecules, and highly potent active pharmaceutical ingredients; and operates small molecules and bioconjugates platforms. The Specialized Modalities segment operates various technologies, such as spanning cell & gene, microbial, bioscience, and mRNA. Lonza Group AG was incorporated in 1897 and is headquartered in Basel, Switzerland.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Lonza Group reported revenue of CHF 6.5B in FY2025 versus CHF 5.4B in FY2021, a compound +4.8%/yr. Reported net income was CHF 949M in FY2025, compounding −24.7%/yr from FY2021.

Growth Quality 31/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
CHF 6.5B
Latest YoY
−0.7%
Avg. growth/yr (3Y)
+1.6%
Avg. growth/yr (5Y)
+7.7%
Avg. growth/yr (21Y)
+5.4%
Revenue +4.8%/yr
FY21 CHF 5.4B
FY22 CHF 6.2B
FY23 CHF 6.7B
FY24 CHF 6.6B
FY25 CHF 6.5B
Net income −24.7%/yr
FY21 CHF 2.9B
FY22 CHF 1.2B
FY23 CHF 654M
FY24 CHF 636M
FY25 CHF 949M

LONN screens 55% overvalued. Compare with Thermo Fisher Scientific Inc →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "Lonza Group Fair Value". https://www.fairvalue-calculator.com/stock/LONN

Peer Group

Diagnostics & Research · 136 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 −55% · Below median
Return on equity (TTM) 10% · Above median
Return on assets 5% · Above median
Net margin (TTM) -4% · Below median
Operating margin (TTM) 21% · Top 25%
Revenue growth 17% · Above median
Dividend yield (TTM) 0.9% · Below median
Debt / equity 0.42× · Higher than 75% of peers

Valuation Multiples vs Diagnostics & Research median · lower = cheaper

P/E (TTM) 43.7× · Pricier than median
P/B 5.37× · Pricier than 75% of peers
P/S (TTM) 7.51× · Pricier than 75% of peers
EV/EBITDA 24.4× · Pricier than 75% of peers
PEG 1.67× · 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 0
FUTURE 85 · sector 27
PAST 42 · sector 10
HEALTH 79 · sector 96
DIVIDEND 17 · sector 21

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

Insider activity: 40/100

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 Diagnostics & Research stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Thermo Fisher Scientific Inc TMO $543.19 $308.19 -43%
Danaher Corporation DHR $199.66 $103.88 -48%
WuXi AppTec Co 2359 HK$160.70 HK$125.20 -22%
IDEXX Laboratories, Inc IDXX $567.44 $255.77 -55%
Agilent Technologies, Inc A $131.46 $62.70 -52%
Waters Corporation WAT $368.98 $121.96 -67%
IQVIA Holdings IQV $207.85 $134.18 -35%
Integrated Diagnostics Holdings IDHC $0.0050 $0.0053 +5%
Illumina, Inc ILMN $186.65 $95.51 -49%
Mettler-Toledo International Inc MTD $1,296 $628.51 -52%

Compare Lonza Group with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Healthcare stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is Lonza Group (LONN) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of CHF 259.80 versus a price of CHF 572.20, about −55% (overvalued).
What is the fair value of LONN?
Our model-based fair value for Lonza Group is CHF 259.80 (as of Jul 19, 2026), built from audited fundamentals. The current price is CHF 572.20.
What is the quality score of LONN?
Lonza Group 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 Lonza Group (LONN)?
Lonza Group reported trailing-twelve-month revenue of about CHF 6.5B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of LONN?
The net profit margin of Lonza Group is about -4.2%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Lonza Group pay a dividend?
Lonza Group currently shows a dividend yield of about 1.00% relative to its recent price (as of Jul 19, 2026).

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.

14 days Pro free · no card

Track Lonza Group and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.