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:
Below please find a table outlining a discounted cash flow forecast for SNY, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Sanofi ranked in the 57th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Sanofi ended up being:
In the past 4.99 years, Sanofi has a compound free cash flow growth rate of 0.02%; that's higher than merely 23.81% 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 just 12.16% 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 just 12.16% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SNY, try DRRX, UHS, PBH, AHPI, and MEDP.
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Sanofi will raise over US$11 billion from the sale of 21.6 million shares in its U.S. partner Regeneron, the French drugmaker said on Wednesday, adding it would use the proceeds for innovation and general growth.