Sanofi researches, develops, manufactures, and markets various therapeutic solutions. The company operates in three segments: Pharmaceuticals, Vaccines, and Animal Health. The company was founded in 1973 and is based in Paris, France.
SNY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Sanofi. To summarize, we found that Sanofi ranked in the 53th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 31.5%. The most interesting components of our discounted cash flow analysis for Sanofi ended up being:
The compound growth rate in the free cash flow of Sanofi over the past 4.99 years is 0.02%; that's higher than only 22.35% of free cash flow generating stocks in the Healthcare sector.
Sanofi's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 9.13% of tickers in our DCF set.
SNY's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 9.13% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MGLN, HAE, UNH, LH, and ACIU can be thought of as valuation peers to SNY, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
The U.S. Department of Justice has opened an investigation into whether drugmakers including Sanofi SA failed to disclose to the federal government information about the potential presence of a probable carcinogen in the heartburn drug Zantac.
Nirsevimab reduced respiratory syncytial virus infections requiring medical care in healthy premature infants in Phase 2b trial * Nirsevimab reduced respiratory syncytial virus (RSV) lower respiratory tract infections by 70 percent and related hospitalizations by 78 percent1 * Results published in New England Journal of Medicine * The investigative immunization demonstrated sustained protection across a typical five-month RSV season with a single dose1 * Sanofi will host a nirsevimab R&D investor event today at 5 p.m. CET/11 a.m. ET PARIS – July 30, 2020 – Detailed results from the positive Phase 2b trial for nirsevimab showed a significant reduction in medically attended lower respiratory tract infections (LRTI), mainly bronchiolitis and pneumonia, and hospitalizations caused by ...