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Sandoz Group (SDZ) Fair Value & Analysis

Healthcare · CH · Market cap CHF 28.0B

SG Sandoz Group SDZ · SW
PriceCHF 69.18
Fair ValueCHF 44.26
Upside-36.0%
Quality63/100
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Healthy Growth
Thin margins · 8.2% net margin
Moderate debt · generates free cash flow
1.55% dividend yield
Mixed vs. peers (7/15)
Moderate moat 49/100
Evidence: High Range CHF 26.97 – CHF 55.32 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Jul 16, 2026, revised from CHF 44.55 to CHF 44.26 (−0.7%) since Jun 24, 2026. Share price −1.1% over the past month.

A solid business, but screening 36% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (CHF 55.32). The favourable scenario is already priced in.
  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (CHF 26.97 to CHF 55.32) leaves room in how you read the outcome.
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Price vs Fair Value (3 years)

CHF 73.26 CHF 22.61 Fair Value CHF 44.26 Oct 2023 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

34‑month range CHF 22.61 – CHF 73.26 · fair‑value band CHF 26.97 – CHF 55.32 · the CHF 69.18 price screens above the CHF 44.26 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Sandoz Group (SDZ) currently trades at CHF 69.18, while our model-based Fair Value estimate is CHF 44.26, implying the stock looks roughly 36.0% overvalued today. We read business quality at 63/100 (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, Sandoz Group generated revenue of CHF 11.2B at a net margin of 8.2%. Revenue grew 10.7% year over year. It earns a return on equity of 10.4%. Net debt stands at CHF 3.9B. Fundamentals as of Jul 16, 2026

Our scenario range runs from CHF 26.97 (bear case) to CHF 55.32 (bull case); at CHF 69.18, 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 last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 4% below its 52-week high and 69% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at -36%, SDZ screens cheaper 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
Growth DCF CHF 16.41 CHF 32.45 CHF 58.86 80
Residual Income CHF 19.18 CHF 21.41 CHF 34.98 76
Rev-Margin DCF CHF 25.46 CHF 50.69 CHF 82.17 74
All 26 models by family
DCF Models
FCF DCF CHF 16.41 CHF 33.39 CHF 61.84 38
Owner Earnings CHF 13.78 CHF 28.85 CHF 54.08 31
5Y Revenue Exit CHF 25.46 CHF 51.48 CHF 86.62 39
5Y EBITDA Exit CHF 32.98 CHF 66.55 CHF 108.20 41
5Y P/E Exit CHF 21.14 CHF 42.82 CHF 67.07 38
10Y Revenue Exit CHF 20.89 CHF 44.41 CHF 79.89 36
10Y EBITDA Exit CHF 27.06 CHF 55.28 CHF 97.47 37
10Y P/E Exit CHF 19.30 CHF 38.17 CHF 63.97 35
Earnings-Based
Graham-Dodd CHF 15.05 CHF 62.96 CHF 85.88 54
Lynch FV CHF 15.95 CHF 22.79 CHF 29.63 50
PEG = 1.0 CHF 15.95 CHF 22.79 CHF 29.63 46
EPV CHF 25.73 CHF 31.15 CHF 35.90 59
Dividend Discount
Gordon GGM CHF 6.68 CHF 13.90 CHF 22.05 70
DDM Multi-Stage CHF 6.68 CHF 11.72 CHF 14.59 61
Multiples
P/E Multiple CHF 33.19 CHF 44.26 CHF 55.32 63
P/S Multiple CHF 28.21 CHF 37.62 CHF 47.02 58
P/B Multiple CHF 28.21 CHF 37.62 CHF 47.02 55
EV/EBIT CHF 48.90 CHF 67.47 CHF 86.05 53
EV/EBITDA CHF 45.70 CHF 63.21 CHF 80.71 54
EV/Revenue CHF 30.73 CHF 46.83 CHF 62.93 43
Asset-Based
NCAV (Graham) CHF 10.84 CHF 14.53 CHF 21.69 50
Growth DCF
Growth DCF CHF 16.41 CHF 32.45 CHF 58.86 80
Rev-Margin DCF CHF 25.46 CHF 50.69 CHF 82.17 74
Economic Profit
Residual Income CHF 19.18 CHF 21.41 CHF 34.98 76
ROIC Compounder CHF 27.43 CHF 39.08 CHF 55.44 72
Growth Earnings
Growth-Adj P/E CHF 26.43 CHF 37.76 CHF 49.09 68

Widest divergence: Multiples (CHF 44.26) versus Dividend Discount (CHF 11.72). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) CHF 11.2B
Revenue growth (YoY) +10.7%
Net margin 8.2%
Return on equity 10.4%
Free cash flow CHF 810M FY2025
P/E ratio 39.8
More key figures
Operating margin 14.3%
EPS (TTM) CHF 1.65
Dividend yield 1.5%
EPS growth (YoY) +150%
Net debt CHF 3.9B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 55 · Market factors (momentum, volatility) 75

Profitability 40
Margins and returns on capital today
Quality Growth 85
Are margins and returns improving?
Cashflow 49
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 25
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 66
Price trend over the last 3–12 months (market factor)
52W Momentum 84
Distance to the 52-week high (market factor)
Net Issuance 76
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

Sandoz Group AG develops, manufactures, and markets generic and biosimilars worldwide. The company covers therapeutic areas, including cardiovascular, central nervous system, oncology, infectious diseases, pain and respiratory, supportive care, rare diseases, diabetes, immunology, endocrinology, neurology, osteoporosis, nephrology, hematology, and …

Full company description

Sandoz Group AG develops, manufactures, and markets generic and biosimilars worldwide. The company covers therapeutic areas, including cardiovascular, central nervous system, oncology, infectious diseases, pain and respiratory, supportive care, rare diseases, diabetes, immunology, endocrinology, neurology, osteoporosis, nephrology, hematology, and ophthalmology. It also provides a portfolio of active pharmaceutical ingredients and finished dosage forms. Sandoz Group AG was founded in 1886 and is headquartered in Basel, Switzerland.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sandoz Group reported revenue of CHF 11.6B in FY2025 versus CHF 8.8B in FY2021, a compound +7.1%/yr. Reported net income was CHF 957M in FY2025, compounding +3.7%/yr from FY2021.

Growth Quality 67/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
CHF 11.6B
Latest YoY
+27.3%
Avg. growth/yr (3Y)
+9.4%
Avg. growth/yr (5Y)
+6.3%
Revenue +7.1%/yr
FY21 CHF 8.8B
FY22 CHF 8.9B
FY23 CHF 10.0B
FY24 CHF 9.1B
FY25 CHF 11.6B
Net income +3.7%/yr
FY21 CHF 828M
FY22 −CHF 22.9K
FY23 CHF 77.0M
FY24 CHF 1.0M
FY25 CHF 957M

SDZ screens 36% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

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

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Drug Manufacturers - Specialty & Generic · 625 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 63 · Top 25%
Fair Value upside −36% · Below median
Return on equity (TTM) 10% · Above median
Return on assets 4% · Above median
Net margin (TTM) 8% · Above median
Operating margin (TTM) 14% · Above median
Revenue growth 11% · Above median
Dividend yield (TTM) 1.6% · Below median
Debt / equity 0.50× · Higher than 75% of peers

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 38.3× · Pricier than median
P/B 3.69× · Pricier than 75% of peers
P/S (TTM) 3.10× · Pricier than median
P/FCF 42.8× · Pricier than 75% of peers
EV/EBITDA 19.9× · Pricier than median
PEG 0.86× · Cheaper 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 9
FUTURE 54 · sector 20
PAST 42 · sector 23
HEALTH 75 · sector 97
DIVIDEND 31 · sector 35

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 Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.19 ¥25.94 -51%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,933 ₹989.50 -49%
Divi's Laboratories Limited DIVISLAB ₹7,316 ₹1,943 -73%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,763 ₹1,329 -72%
PharmaEssentia Corporation 6446 1,285 TWD 221.01 TWD -83%
Cipla Limited CIPLA ₹1,439 ₹1,001 -30%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,151 ₹703.32 -39%
Lupin Limited LUPIN ₹2,443 ₹2,477 +1%
Mankind Pharma Limited MANKIND ₹2,484 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,211 ₹874.79 -28%

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Frequently asked questions

Is Sandoz Group (SDZ) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of CHF 44.26 versus a price of CHF 69.18, about −36% (overvalued).
What is the fair value of SDZ?
Our model-based fair value for Sandoz Group is CHF 44.26 (as of Jul 16, 2026), built from audited fundamentals. The current price is CHF 69.18.
What is the quality score of SDZ?
Sandoz Group has a Quality Score of 63/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Sandoz Group (SDZ)?
Sandoz Group reported trailing-twelve-month revenue of about CHF 11.2B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of SDZ?
The net profit margin of Sandoz Group is about 8.2%, meaning it keeps roughly 8.2% of revenue as net income. Based on the latest reported figures.
Does Sandoz Group pay a dividend?
Sandoz Group currently shows a dividend yield of about 1.54% relative to its recent price (as of Jul 16, 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.

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