AstraZeneca plc engages in the discovery, development, and commercialization of prescription medicines for the treatment of cardiovascular, metabolic, respiratory, inflammation, autoimmune, oncology, infection, and neuroscience diseases worldwide. The company was founded in 1992 and is based in London, the United Kingdom.
AZN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Astrazeneca Plc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Astrazeneca Plc ranked in the 19th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 64.17%. In terms of the factors that were most noteworthy in this DCF analysis for AZN, they are:
The company's compound free cash flow growth rate over the past 5.81 years comes in at -0.12%; that's greater than only 15.57% of US stocks we're applying DCF forecasting to.
The weighted average cost of capital for the company is 7. This value is greater than just 21.45% stocks in the Healthcare sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DHR, EW, TFX, CNMD, and HOLX can be thought of as valuation peers to AZN, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.