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Sanofi 32.69 (EUR) / $39.95 (USD) Close Price as of 23/04/2018
Based on the analysis conducted in this report, Sanofi, (SNY:NYS) is found to be Undervalued. Use a conversion rate of 1.22214129 from EUR to USD.
We have up to 6 valuation points for each company. Details are at the bottom of the report.
Discounted Cash Flow and Sensitivity Analysis for SNY:NYS
Using a discounted cash flow model we generated an intrinsic value of 62.42 (EUR) / $76.28 (USD) for SNY:NYS
(showing how changes in the input variables impact the DCF calculation)
Using similar companies and price based ratios we generated a valuation of 43.44 (EUR) / $53.09 (USD) for SNY:NYS. We also generated a valuation of 73.46 (EUR) / $89.78 (USD) using other metrics and comparables. The comparable companies were AbbVie (ABBV:NYS), AstraZeneca (AZN:NYS), Johnson & Johnson (JNJ:NYS), Novartis (NVS:NYS) and Pfizer (PFE:NYS)
Using a multiples approach we generated a valuation of 48.64 (EUR) / $59.45 (USD) for SNY:NYS
Adjusted Book Value versus Historical Price to Book
The average the Price to Book ratio for SNY:NYS for the last 10 years was 1.80
We ran the Adjusted Book Value for SNY:NYS and generated a book value of 46.32 (EUR) / $56.61 (USD) By multiplying these we get an adjusted valuation of 83.16 (EUR) / $101.63 (USD)
Company Overview (SNY:NYS USD)
Detailed Company Description
Sanofi SA is healthcare company which is engaged in the research, development, manufacture and marketing of therapeutic solutions. It business activities include operations of specialty care, Established Prescription Products and vaccines operations.
Explanation of Valuation Models
We have up to 6 valuation points for each company in the database.
The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).
The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.
With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.
If we have Analyst coverage for the company we use the consensus target price here.