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Roche Holding AG (RO) Fair Value & Analysis

Healthcare · CH · Market cap CHF 265B · ISIN CH0012032113

What is Roche Holding AG really worth?

RH Roche Holding AG RO · SW
PriceCHF 364.20
Fair ValueCHF 306.54
Upside−15.8%
Quality75/100

A strong business, but trading 19% above our fair value of CHF 306.54.

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Strengths

Highly profitable · 20.3% net margin
Moderate debt · generates free cash flow
Ranks above peers (9/15)
Wide moat 87/100

Risks

!Weak Growth (revenue 5y +1.1 %/yr)
!Weak on valuation: 12 out of 100

For context

·2.69% dividend yield
Evidence: High Range CHF 194.73 – CHF 441.10

Fair value as of: Aug 27, 2026

From 25 valuation models · updated 8 days ago

Share price −1.6% over the past month.

What runs behind every stock

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

What matters now

  • A high-quality business (quality 75/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • A fairly wide model range (CHF 194.73 to CHF 441.10) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

CHF 379.60 CHF 216.26 Fair Value CHF 306.54 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range CHF 216.26 – CHF 379.60 · fair‑value band CHF 194.73 – CHF 441.10 · the CHF 364.20 price screens above the CHF 306.54 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Roche Holding AG (RO) currently trades at CHF 364.20, while our model-based Fair Value estimate is CHF 306.54, implying the stock looks roughly 18.8% overvalued today. The Quality Score stands at 75/100 (high quality), in the Healthcare sector. Bull case: the Growth Earnings group reads highest at a median of CHF 277.44 per share, and 2 of the 25 models we run sit above the CHF 364.20 price. Bear case: the Economic Profit group reads lowest at CHF 128.42, and 23 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Roche Holding AG generated revenue of CHF 63.4B at a net margin of 20.3%. Revenue declined 0.4% year over year. It earns a return on equity of 37.3%. Net debt stands at CHF 27.6B. Fundamentals as of Aug 27, 2026

Our scenario range runs from CHF 194.73 (bear case) to CHF 441.10 (bull case); at CHF 364.20, the current price sits within 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 2% below its 52-week high and 46% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −11% fair-value upside, at −16%, RO 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 4.24 per share, which is 1.4 % 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
FCF DCF best evidence CHF 166.01 CHF 251.83 CHF 378.09 80
Growth DCF CHF 173.19 CHF 254.97 CHF 371.00 78
Owner Earnings CHF 144.55 CHF 220.84 CHF 333.08 76
All 25 models by family
DCF Models
FCF DCF best evidence CHF 166.01 CHF 251.83 CHF 378.09 80
Owner Earnings CHF 144.55 CHF 220.84 CHF 333.08 76
5Y Revenue Exit CHF 138.22 CHF 216.58 CHF 311.66 72
5Y EBITDA Exit CHF 208.02 CHF 338.88 CHF 483.32 75
5Y P/E Exit CHF 190.25 CHF 307.75 CHF 422.92 71
10Y Revenue Exit CHF 141.87 CHF 214.28 CHF 300.96 67
10Y EBITDA Exit CHF 190.99 CHF 298.20 CHF 427.24 68
10Y P/E Exit CHF 179.69 CHF 276.84 CHF 382.81 64
Earnings-Based
Graham-Dodd CHF 109.07 CHF 231.17 CHF 293.10 66
PEG = 1.0 CHF 35.03 CHF 50.04 CHF 65.06 57
EPV CHF 173.17 CHF 208.53 CHF 239.96 74
Dividend Discount
Gordon GGM CHF 100.44 CHF 156.51 CHF 219.77 68
DDM Multi-Stage CHF 100.44 CHF 146.52 CHF 201.32 66
Multiples
P/E Multiple CHF 264.66 CHF 352.88 CHF 441.10 63
P/S Multiple CHF 201.10 CHF 268.13 CHF 335.16 58
P/B Multiple CHF 142.07 CHF 189.43 CHF 236.78 55
EV/EBIT CHF 278.67 CHF 380.62 CHF 482.58 66
EV/EBITDA CHF 268.96 CHF 367.69 CHF 466.41 67
EV/Revenue CHF 133.67 CHF 202.62 CHF 271.56 53
Asset-Based
NCAV (Graham) CHF 21.05 CHF 28.20 CHF 42.09 54
Growth DCF
Growth DCF CHF 173.19 CHF 254.97 CHF 371.00 78
Rev-Margin DCF CHF 138.22 CHF 219.17 CHF 304.30 72
Economic Profit
Residual Income CHF 103.05 CHF 128.42 CHF 674.01 64
ROIC Compounder CHF 179.77 CHF 225.06 CHF 271.98 72
Growth Earnings
Growth-Adj P/E CHF 194.21 CHF 277.44 CHF 360.67 67

Widest divergence: Growth Earnings (CHF 277.44) versus Asset-Based (CHF 28.20). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 20.8 as of Jul 15, 2026
P/S ratio 4.35 P/E × margin
EPS (TTM) CHF 16.06 price ÷ EPS = P/E 20.8
Dividend yield 2.7% payout 61.0%
Net margin 20.9% FY2025
Return on equity 37.3% TTM
More key figures
Profitability
Return on assets (EBIT) 17.8% avg 5y
Operating margin 30.0% TTM
Growth
Revenue (TTM) CHF 63.4B TTM
Revenue growth (YoY) −0.4% 3y avg −2.2%
EPS growth (YoY) +171%
Balance sheet & cash flow
Free cash flow CHF 14.1B FY2025
Net debt CHF 27.6B FY2025 · ≈ 2.0 yrs of FCF

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 75/100

Of which business quality 73 · Market factors (momentum, volatility) 75

Profitability 77
Margins and returns on capital today
Quality Growth 61
Are margins and returns improving?
Cashflow 81
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 74
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 83
Distance to the 52-week high (market factor)
Net Issuance 81
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

Roche Holding AG engages in the pharmaceuticals and diagnostics businesses in Europe, North America, Latin America, Asia, Africa, Australia, and New Zealand.

Full company description

Roche Holding AG engages in the pharmaceuticals and diagnostics businesses in Europe, North America, Latin America, Asia, Africa, Australia, and New Zealand. The company offers pharma solutions in the therapeutic areas of anaemia, blood and solid tumors, dermatology, haematology, infectious diseases, inflammatory and autoimmune, neurological disorders, ophthalmology, respiratory disorders, and transplantation. It also provides in vitro tests for the diagnosis of various diseases, such as cancer, diabetes, Covid-19, hepatitis, human papillomavirus, and others; diagnostic instruments; and digital health solutions. The company was founded in 1896 and is based in Basel, Switzerland.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Roche Holding AG reported revenue of CHF 61.5B in FY2025 versus CHF 62.8B in FY2021, a compound −0.5%/yr. Reported net income was CHF 12.9B in FY2025, compounding −1.9%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
CHF 61.5B
Latest YoY
−1.4%
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.
−2.2%
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.
+1.1%
Avg. revenue growth/yr (27Y) 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.
+3.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+2.5% (−0.2 + 2.7)
Revenue −0.5%/yr
FY21 CHF 62.8B
FY22 CHF 65.8B
FY23 CHF 60.4B
FY24 CHF 62.4B
FY25 CHF 61.5B
Net income −1.9%/yr
FY21 CHF 13.9B
FY22 CHF 12.4B
FY23 CHF 11.5B
FY24 CHF 8.3B
FY25 CHF 12.9B
Character of growth · EPS growth decomposed (2014-2025) +2.6 % p.a.
Revenue per share +2.9 %

of which total revenue +2.1 % · buybacks/dilution +0.8 %

EBIT margin −2.2 %
Tax rate +0.9 %
Residual (interest, one-offs) +1.1 %

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).

RO screens 19% overvalued. Compare with Eli Lilly and Company →

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Cite: Fair Value Calculator (2026). "Roche Holding AG Fair Value". https://www.fairvalue-calculator.com/stock/RO

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Drug Manufacturers - General · 75 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 75 · Top 25%
Fair Value upside −16% · Above median
Return on equity (TTM) 37% · Top 25%
Return on assets 13% · Top 25%
Net margin (TTM) 20% · Above median
Operating margin (TTM) 30% · Above median
Revenue growth 0% · Below median
Dividend yield (TTM) 2.7% · Above median
Debt / equity 0.81× · Higher than 75% of peers

Valuation Multiples vs Drug Manufacturers - General median · lower = cheaper

P/E (TTM) 20.8× · Cheaper than median
P/B 9.69× · Pricier than 75% of peers
P/S (TTM) 5.17× · Pricier than median
P/FCF 23.3× · Pricier than median
EV/EBITDA 14.5× · Pricier than median
PEG 1.46× · Cheaper 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
VALUE12 · sector 0
FUTURE0 · sector 29
PAST100 · sector 49
HEALTH59 · sector 94
DIVIDEND54 · sector 42

Insider activity: 30/100

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 Drug Manufacturers - General stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
Eli Lilly and Company LLY $1,176 $389.47 −67%
Johnson & Johnson, JNJ $265.77 $169.04 −36%
AbbVie Inc ABBV $258.15 $67.72 −74%
Merck & Co MRK €131.98 €101.38 −23%
Novartis AG NOVN CHF 123.74 CHF 114.90 −7%
Novo Nordisk A/S NOVOB kr 295.50 kr 409.46 +39%
Amgen Inc AMGN $436.99 $252.02 −42%
Gilead Sciences, Inc GILD $148.86 $146.50 −2%
Pfizer Inc PFE $28.02 $24.87 −11%
Bristol-Myers Squibb Company BMY $66.58 $75.98 +14%

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Frequently asked questions

Is Roche Holding AG (RO) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of CHF 306.54 versus a price of CHF 364.20, about −16% upside (overvalued).
What is the fair value of RO?
Our model-based fair value for Roche Holding AG is CHF 306.54 (as of Aug 27, 2026), built from audited fundamentals. The current price: CHF 364.20.
What is the quality score of RO?
Roche Holding AG has a Quality Score of 75/100. 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 Roche Holding AG (RO)?
Roche Holding AG reported trailing-twelve-month revenue of about CHF 63.4B (latest available figure, as of Aug 27, 2026).
What is the net profit margin of RO?
The net profit margin of Roche Holding AG is about 20.3%, meaning it keeps roughly 20.3% of revenue as net income. Based on the latest reported figures.
Does Roche Holding AG pay a dividend?
Roche Holding AG currently shows a dividend yield of about 2.69% relative to its recent price (as of Aug 27, 2026).
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