ROIV
Roivant Sciences Ltd.
$34.05
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 62.9% below fair value
You pay
$34.05
Bear
$78.57
Fair
$91.67
Bull
$104.76
Bear
$78.57
+130.7%
$5.23 × 18x P/E
Fair
$91.67
+169.2%
$5.23 × 21x P/E
Bull
$104.76
+207.7%
$5.23 × 24x P/E
Key Value Driver
Normalized P/E multiple (21x base case)
Implied Market Multiple
6.5x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $37.17 from 15 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $91.67 per share.
Warnings
Wall Street's average price target is $37.17 (from 15 analysts). Our estimate is 195% above the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples