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Lonza Group AG (LONN) Fair Value & Analysis

Healthcare · CH · Market cap CHF 39.7B · ISIN CH0013841017

What is Lonza Group AG really worth?

LG Lonza Group AG LONN · SW
PriceCHF 567.20
Fair ValueCHF 259.80
Upside−54.2%
Quality55/100

A solid business, but trading 118% above our fair value of CHF 259.80.

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Risks

!Expensive Growth (revenue 5y +7.7 %/yr)
!Loss over the last twelve months · -4.2% net margin · fiscal year 2025 14.5%
!Low debt · negative free cash flow
!Trails peers (5/14)
!Moderate moat 46/100
!Evidence only medium, so the estimate is less certain
!Weak on dividend: 18 out of 100

For context

·0.88% dividend yield
Evidence: Medium Range CHF 181.86 – CHF 337.74

Fair value as of: Sep 1, 2026

From 17 valuation models · updated 4 days ago

Share price +1.0% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (CHF 337.74). The favourable scenario is already priced in.
  • Solid but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (CHF 181.86 to CHF 337.74) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

CHF 756.42 CHF 303.80 Fair Value CHF 259.80 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.

How to read this chart

60‑month range CHF 303.80 – CHF 756.42 · fair‑value band CHF 181.86 – CHF 337.74 · the CHF 567.20 price screens above the CHF 259.80 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 1, 2026.

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Analysis

Lonza Group AG (LONN) currently trades at CHF 567.20, while our model-based Fair Value estimate is CHF 259.80, implying the stock looks roughly 118.3% overvalued today. The Quality Score stands at 55/100 (solid quality), in the Healthcare sector. Bull case: the Growth Earnings group reads highest at a median of CHF 259.80 per share, and 0 of the 17 models we run sit above the CHF 567.20 price. Bear case: the DCF Models group reads lowest at CHF 50.97, and 17 of the 17 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Lonza Group AG generated revenue of CHF 6.5B at a net margin of −4.2%. Revenue grew 17.0% year over year. It earns a return on equity of 10.5%. Net debt stands at CHF 3.5B. Fundamentals as of Sep 1, 2026

Our scenario range runs from CHF 181.86 (bear case) to CHF 337.74 (bull case); at CHF 567.20, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 4% below its 52-week high and 26% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −52% fair-value upside, at −54%, LONN screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly CHF 5.42 per share, which is 2.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EPV CHF 117.07 CHF 144.11 CHF 167.77 74
Residual Income CHF 116.13 CHF 130.14 CHF 217.15 74
ROIC Compounder CHF 117.07 CHF 151.69 CHF 201.79 72
All 17 models by family
DCF Models
Owner Earnings CHF 17.36 CHF 50.97 CHF 101.69 71
Earnings-Based
Graham-Dodd CHF 92.39 CHF 275.54 CHF 364.86 65
Lynch FV CHF 58.21 CHF 83.15 CHF 108.10 61
PEG = 1.0 CHF 58.21 CHF 83.15 CHF 108.10 57
EPV CHF 117.07 CHF 144.11 CHF 167.77 74
Dividend Discount
Gordon GGM CHF 36.81 CHF 76.53 CHF 121.41 66
DDM Multi-Stage CHF 36.81 CHF 59.74 CHF 80.32 66
Multiples
P/E Multiple CHF 224.19 CHF 298.92 CHF 373.65 63
P/S Multiple CHF 173.24 CHF 230.99 CHF 288.73 58
P/B Multiple CHF 173.24 CHF 230.99 CHF 288.73 55
EV/EBIT CHF 207.08 CHF 291.18 CHF 375.27 65
EV/EBITDA CHF 284.78 CHF 394.78 CHF 504.77 67
EV/Revenue CHF 134.86 CHF 212.03 CHF 289.20 53
Asset-Based
NCAV (Graham) CHF 65.39 CHF 87.62 CHF 130.78 54
Economic Profit
Residual Income CHF 116.13 CHF 130.14 CHF 217.15 74
ROIC Compounder CHF 117.07 CHF 151.69 CHF 201.79 72
Growth Earnings
Growth-Adj P/E CHF 181.86 CHF 259.80 CHF 337.74 67

Widest divergence: Growth Earnings (CHF 259.80) versus DCF Models (CHF 50.97). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 43.6
P/S ratio 6.34 P/E × margin
EPS (TTM) CHF 13.00 price ÷ EPS = P/E 43.6
Dividend yield 0.9% payout 38.5%
Net margin 14.5% FY2025
Return on equity 10.5% TTM
More key figures
Profitability
Return on assets (EBIT) 6.3% avg 5y
Operating margin 21.4% TTM
Growth
Revenue (TTM) CHF 6.5B TTM
Revenue growth (YoY) +17.0% 3y avg +1.6%
EPS growth (YoY) +31.7%
Balance sheet & cash flow
Free cash flow −CHF 204M FY2025
Net debt CHF 3.5B FY2025

Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 53 · Market factors (momentum, volatility) 62

Profitability 38
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 30
Earnings quality: real cash, not paper profit
Fin. Strength 64
Balance sheet, leverage, solvency risk
Investment 62
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 52
Price trend over the last 3–12 months (market factor)
52W Momentum 59
Distance to the 52-week high (market factor)
Net Issuance 98
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Lonza Group AG, together with its subsidiaries, operates as a contract development and manufacturing organization for pharma and biotech companies in Europe, North and Central America, Latin America, Asia, Australia, New Zealand, and internationally. It operates through Integrated Biologics; Advanced Synthesis; and Specialized Modalities segments.

Full company description

Lonza Group AG, together with its subsidiaries, operates as a contract development and manufacturing organization for pharma and biotech companies in Europe, North and Central America, Latin America, Asia, Australia, New Zealand, and internationally. It operates through Integrated Biologics; Advanced Synthesis; and Specialized Modalities segments. The Integrated Biologics segment offers CDMO biologics services from clinical development, drug substance, and drug product manufacturing; and operates mammalian and drug product platforms. Its Advanced Synthesis segment manufactures antibody-drug conjugates (ADCs) and other bioconjugates, small molecules, and highly potent active pharmaceutical ingredients; and operates small molecules and bioconjugates platforms. The Specialized Modalities segment operates various technologies, such as spanning cell & gene, microbial, bioscience, and mRNA. Lonza Group AG was incorporated in 1897 and is headquartered in Basel, Switzerland.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Lonza Group AG reported revenue of CHF 6.5B in FY2025 versus CHF 5.4B in FY2021, a compound +4.8%/yr. Reported net income was CHF 949M in FY2025, compounding −24.7%/yr from FY2021.

Growth Quality 31/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
CHF 6.5B
Latest YoY
−0.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.6%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.7%
Avg. revenue growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+4.0% (3.1 + 0.9)
Revenue +4.8%/yr
FY21 CHF 5.4B
FY22 CHF 6.2B
FY23 CHF 6.7B
FY24 CHF 6.6B
FY25 CHF 6.5B
Net income −24.7%/yr
FY21 CHF 2.9B
FY22 CHF 1.2B
FY23 CHF 654M
FY24 CHF 636M
FY25 CHF 949M
Character of growth · EPS growth decomposed (2014-2025) +8.1 % p.a.
Revenue per share +2.6 %

of which total revenue +6.2 % · buybacks/dilution −3.4 %

EBIT margin +2.1 %
Tax rate −0.8 %
Residual (interest, one-offs) +4.0 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

LONN screens 118% overvalued. Compare with Thermo Fisher Scientific Inc →

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Cite: Fair Value Calculator (2026). "Lonza Group AG Fair Value". https://www.fairvalue-calculator.com/stock/LONN

Peer Group

Diagnostics & Research · 130 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 55 · Above median
Fair Value upside −54% · Below median
Return on equity (TTM) 10% · Above median
Return on assets 5% · Above median
Net margin (TTM) −4% · Below median
Operating margin (TTM) 21% · Top 25%
Revenue growth 17% · Above median
Dividend yield (TTM) 0.9% · Below median
Debt / equity 0.42× · Higher than 75% of peers

Valuation Multiples vs Diagnostics & Research median · lower = cheaper

P/E (TTM) 43.6× · Pricier than median
P/B 5.36× · Pricier than 75% of peers
P/S (TTM) 7.50× · Pricier than 75% of peers
EV/EBITDA 24.4× · Pricier than 75% of peers
PEG 1.67× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE85 · sector 30
PAST42 · sector 12
HEALTH79 · sector 96
DIVIDEND18 · sector 20

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Diagnostics & Research stocks, each showing price versus our Fair Value estimate (as of Sep 1, 2026).

Stock Price Fair Value vs Fair Value
Thermo Fisher Scientific Inc TMO $630.70 $308.19 −51%
Danaher Corporation DHR $215.68 $103.88 −52%
WuXi AppTec Co 2359 HK$189.30 HK$150.16 −21%
IDEXX Laboratories, Inc IDXX $556.69 $255.77 −54%
Agilent Technologies, Inc A $149.93 $61.53 −59%
Waters Corporation WAT $416.15 $121.96 −71%
IQVIA Holdings IQV $236.66 $132.17 −44%
Illumina, Inc ILMN $215.59 $95.51 −56%
Mettler-Toledo International Inc MTD $1,419 $615.78 −57%
Quest Diagnostics Incorporated DGX $242.76 $162.50 −33%

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Frequently asked questions

Is Lonza Group AG (LONN) overvalued or undervalued?
As of Sep 1, 2026, our model estimates a fair value of CHF 259.80 versus a price of CHF 567.20, about −54% upside (overvalued).
What is the fair value of LONN?
Our model-based fair value for Lonza Group AG is CHF 259.80 (as of Sep 1, 2026), built from audited fundamentals. The current price: CHF 567.20.
What is the quality score of LONN?
Lonza Group AG has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Lonza Group AG (LONN)?
Lonza Group AG reported trailing-twelve-month revenue of about CHF 6.5B (latest available figure, as of Sep 1, 2026).
What is the net profit margin of LONN?
The net profit margin of Lonza Group AG is about −4.2%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Lonza Group AG pay a dividend?
Lonza Group AG currently shows a dividend yield of about 0.88% relative to its recent price (as of Sep 1, 2026).
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