3 models fit Sandoz Group AG and they disagree: 0 of 3 land within 15% of the average.
Two or more of our models back this value.
Large premium(i)Bronze53
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionSandoz Group AG (SDZ.SW)
Fair value (3 models)
CHF 52.51
ACCE price target
CHF 77.50
Rating
Overvalued
Horizon
12 months
Fair value published on 22 Oct 2026, 12:04 CEST.
ACCE price target published on 22 Oct 2026, 16:00 CEST.
Rating published on 22 Oct 2026, 12:04 CEST.
Price used: CHF 80.66 at the close on 23 Oct 2026, 17:30 CEST.
Models: P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
53.6% above
-34.9% to fair value
ACCE score
58
out of 100
P/E
67.8x
forward 21.3x
1-year return
+64.0%
Dividend yield
1.01%
Sandoz Group AG in four questions
Plain answers, details below
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Overview
ACCE thesis
Sandoz makes generic and biosimilar medicines, from oral solids and injectables to its own biosimilar versions of blockbuster biologics, sold across Europe, the US and emerging markets after its 2023 spin-off from Novartis. Its moat is scale in a hard-to-copy niche: biosimilars need costly analytical comparability work and manufacturing know-how that most generic rivals lack, and that barrier is what protects a 47.8% gross margin. Revenue is growing 9.9%, and the biosimilar pipeline, including the ramp of its denosumab and aflibercept-class products as originator patents expire, is the main near-term lever for that growth. The trailing P/E of 67.5 reflects depressed reported earnings, with a 5.2% operating margin and a 7.2% ROE, while the forward P/E of 20.9 implies the market expects earnings to recover sharply. That gap between trailing and forward earnings is the central question for a deeper look: whether margin recovery is credible given pricing pressure in generics and the cost of scaling biosimilar capacity.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings collapse year on year
Earnings fell 71.3% year on year while revenue grew 9.9%, so profit is being squeezed hard. Operating margin of 5.2% and net margin of 5.5% leave little cushion if this continues.
moderate
Rich trailing valuation
Trailing P/E is 68.2 and EV/EBITDA is 25.9, far above the forward P/E of 18.9. The price depends on earnings recovering, which the trailing numbers do not yet show.
moderate
Modest return on equity
ROE of 7.2% is thin for a company carrying debt to equity of 0.61. Five-year revenue growth of 3.1% a year is slow for the sector.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 9.9% year over year, well above the 3.1% annual average of the past five years.
Trailing free cash flow reached $810M, showing the business generates real cash beyond its accounting profit.
Forward earnings multiple of 18.9x is far below the trailing 68.2x, implying profits are expected to rise sharply.
Why it could disappoint
Net margin of 5.5% and return on equity of 7.2% are thin for a business asking investors to pay this much.
Free cash flow yield of 2.0% offers little cushion if the share price stalls or the cash flow slips.
Analysts' mean price target of CHF 78.16 sits only 1.4% above the share price, leaving little upside in their view.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Feb 17, 2027
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where SDZ.SW's valuation models land
Price
CHF 80.66
Model fair value
CHF 52.51
Model range
CHF 26.71 to CHF 85.00
Fair value CHF 52.51
Price CHF 80.66
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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