TEVA
Teva Pharmaceutical Industries Limited
$41.17
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 145.1% above fair value
You pay
$41.17
Bear
$14.40
Fair
$16.80
Bull
$19.20
Bear
$14.40
-65.0%
$1.20 × 12x P/E
Fair
$16.80
-59.2%
$1.20 × 14x P/E
Bull
$19.20
-53.4%
$1.20 × 16x P/E
Adjust Assumptions
14.0x
1.2$
Key Value Driver
Normalized P/E multiple (14x base case)
Implied Market Multiple
34.3x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (46 analysts)
$45.80
Divergence from AlphaVal
63%
Summary
Applying a 14x P/E to adjusted EPS of $1.20, the base-case value is $16.80 per share.
Warnings
Wall Street's average price target is $45.80 (from 46 analysts). Our estimate is 63% below 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