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Sandoz Group AG (SDZ) Fair Value & Analysis

Healthcare · CH · Market cap CHF 28.0B · ISIN CH1243598427

What is Sandoz Group AG really worth?

SG Sandoz Group AG SDZ · SW
PriceCHF 68.36
Fair ValueCHF 39.21
Upside−42.6%
Quality56/100

A solid business, but trading 74% above our fair value of CHF 39.21.

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Strengths

Healthy Growth (revenue 5y +6.3 %/yr)
Moderate debt · generates free cash flow

Risks

!Thin margins · 8.2% net margin
!Mixed vs. peers (8/15)
!Moderate moat 49/100

For context

·1.48% dividend yield
Evidence: High Range CHF 21.72 – CHF 49.01

Fair value as of: Aug 27, 2026

From 26 valuation models · updated 9 days ago

Fair value updated Aug 27, 2026, revised from CHF 48.68 to CHF 39.21 (−19.5%) since Aug 13, 2026. Share price +0.3% 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 49.01). The favourable scenario is already priced in.
  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (CHF 21.72 to CHF 49.01) leaves room in how you read the outcome.

Price vs Fair Value (3 years)

CHF 74.90 CHF 22.61 Fair Value CHF 39.21 Oct 2023 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

35‑month range CHF 22.61 – CHF 74.90 · fair‑value band CHF 21.72 – CHF 49.01 · the CHF 68.36 price screens above the CHF 39.21 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

Sandoz Group AG (SDZ) currently trades at CHF 68.36, while our model-based Fair Value estimate is CHF 39.21, implying the stock looks roughly 74.3% overvalued today. The Quality Score stands at 56/100 (solid quality), in the Healthcare sector. Bull case: the Multiples group reads highest at a median of CHF 46.83 per share, and 2 of the 26 models we run sit above the CHF 68.36 price. Bear case: the Dividend Discount group reads lowest at CHF 11.72, and 24 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Sandoz Group AG generated revenue of CHF 11.2B at a net margin of 8.2%. Revenue grew 10.7% year over year. It earns a return on equity of 10.4%. Net debt stands at CHF 3.9B. Fundamentals as of Aug 27, 2026

Our scenario range runs from CHF 21.72 (bear case) to CHF 49.01 (bull case); at CHF 68.36, 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 last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 5% below its 52-week high and 67% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −49% fair-value upside, at −43%, SDZ screens cheaper 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 0.4608 per share, which is 1.2 % 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 CHF 16.41 CHF 33.39 CHF 61.84 76
Growth DCF CHF 16.41 CHF 32.45 CHF 58.86 75
Residual Income CHF 19.18 CHF 21.41 CHF 34.98 75
All 26 models by family
DCF Models
FCF DCF CHF 16.41 CHF 33.39 CHF 61.84 76
Owner Earnings CHF 13.78 CHF 28.85 CHF 54.08 72
5Y Revenue Exit CHF 25.46 CHF 51.48 CHF 86.62 70
5Y EBITDA Exit CHF 35.45 CHF 71.51 CHF 116.28 73
5Y P/E Exit CHF 23.17 CHF 46.89 CHF 73.46 69
10Y Revenue Exit CHF 20.89 CHF 44.41 CHF 79.89 63
10Y EBITDA Exit CHF 28.68 CHF 58.86 CHF 104.05 65
10Y P/E Exit CHF 20.63 CHF 41.11 CHF 69.17 61
Earnings-Based
Graham-Dodd CHF 15.05 CHF 62.96 CHF 85.88 64
Lynch FV CHF 15.95 CHF 22.79 CHF 29.63 61
PEG = 1.0 CHF 15.95 CHF 22.79 CHF 29.63 57
EPV CHF 25.73 CHF 31.15 CHF 35.90 74
Dividend Discount
Gordon GGM CHF 6.68 CHF 13.90 CHF 22.05 66
DDM Multi-Stage CHF 6.68 CHF 11.72 CHF 14.59 66
Multiples
P/E Multiple CHF 36.51 CHF 48.68 CHF 60.85 63
P/S Multiple CHF 28.21 CHF 37.62 CHF 47.02 58
P/B Multiple CHF 28.21 CHF 37.62 CHF 47.02 55
EV/EBIT CHF 45.80 CHF 63.34 CHF 80.89 66
EV/EBITDA CHF 49.74 CHF 68.59 CHF 87.45 67
EV/Revenue CHF 30.73 CHF 46.83 CHF 62.93 53
Asset-Based
NCAV (Graham) CHF 10.84 CHF 14.53 CHF 21.69 54
Growth DCF
Growth DCF CHF 16.41 CHF 32.45 CHF 58.86 75
Rev-Margin DCF CHF 25.46 CHF 50.69 CHF 82.17 70
Economic Profit
Residual Income CHF 19.18 CHF 21.41 CHF 34.98 75
ROIC Compounder CHF 27.43 CHF 39.08 CHF 55.44 71
Growth Earnings
Growth-Adj P/E CHF 27.93 CHF 39.90 CHF 51.86 67

Widest divergence: Multiples (CHF 46.83) versus Dividend Discount (CHF 11.72). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 41.4
P/S ratio 3.42 P/E × margin
EPS (TTM) CHF 1.65 price ÷ EPS = P/E 41.4
Dividend yield 1.5% payout 61.2%
Net margin 8.2% FY2025
Return on equity 10.4% TTM
More key figures
Profitability
Return on assets (EBIT) 0.5% avg 5y
Operating margin 14.3% TTM
Growth
Revenue (TTM) CHF 11.2B TTM
Revenue growth (YoY) +10.7% 3y avg +9.4%
EPS growth (YoY) +150%
Balance sheet & cash flow
Free cash flow CHF 810M FY2025
Net debt CHF 3.9B FY2025 · ≈ 4.9 yrs of FCF

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

Quality Score breakdown

Overall quality 56/100

Of which business quality 55 · Market factors (momentum, volatility) 72

Profitability 40
Margins and returns on capital today
Quality Growth 85
Are margins and returns improving?
Cashflow 49
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 25
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 79
Distance to the 52-week high (market factor)
Net Issuance 76
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

Sandoz Group AG develops, manufactures, and markets generic and biosimilars worldwide. The company covers therapeutic areas, including cardiovascular, central nervous system, oncology, infectious diseases, pain and respiratory, supportive care, rare diseases, diabetes, immunology, endocrinology, neurology, osteoporosis, nephrology, hematology, and …

Full company description

Sandoz Group AG develops, manufactures, and markets generic and biosimilars worldwide. The company covers therapeutic areas, including cardiovascular, central nervous system, oncology, infectious diseases, pain and respiratory, supportive care, rare diseases, diabetes, immunology, endocrinology, neurology, osteoporosis, nephrology, hematology, and ophthalmology. It also provides a portfolio of active pharmaceutical ingredients and finished dosage forms. Sandoz Group AG was founded in 1886 and is headquartered in Basel, Switzerland.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sandoz Group AG reported revenue of $11.6B in FY2025 versus $8.8B in FY2021, a compound +7.1%/yr. Reported net income was $957M in FY2025, compounding +3.7%/yr from FY2021.

Growth Quality 67/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
CHF 11.6B
Latest YoY
+27.3%
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.
+9.4%
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.
+6.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+10.3% (8.8 + 1.5)
Revenue +7.1%/yr
FY21 $8.8B
FY22 $8.9B
FY23 $10.0B
FY24 $9.1B
FY25 $11.6B
Net income +3.7%/yr
FY21 $828M
FY22 −$22.9K
FY23 $77.0M
FY24 $1.0M
FY25 $957M

SDZ screens 74% overvalued. Compare with Merck KGaA →

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

Earlier news

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

Peer Group

Drug Manufacturers - Specialty & Generic · 608 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 56 · Above median
Fair Value upside −43% · Below median
Return on equity (TTM) 10% · Above median
Return on assets 4% · Above median
Net margin (TTM) 8% · Above median
Operating margin (TTM) 14% · Above median
Revenue growth 11% · Above median
Dividend yield (TTM) 1.5% · Above median
Debt / equity 0.50× · Higher than 75% of peers

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 41.4× · Pricier than median
P/B 3.68× · Pricier than 75% of peers
P/S (TTM) 3.10× · Pricier than median
P/FCF 42.7× · Pricier than 75% of peers
EV/EBITDA 19.8× · Pricier than median
PEG 0.86× · 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
VALUE0 · sector 2
FUTURE54 · sector 22
PAST42 · sector 26
HEALTH75 · sector 97
DIVIDEND30 · sector 29

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

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 - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
Merck KGaA MRK €140.25 €106.48 −24%
Takeda Pharmaceutical Company TAK $18.03 $11.11 −38%
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.76 ¥25.94 −52%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,944 ₹989.50 −49%
Galderma Group GALD CHF 178.55 CHF 55.07 −69%
Haleon plc HLN $10.11 $7.64 −24%
Teva Pharmaceutical Industries Limited TEVA $36.05 $15.33 −57%
Zoetis Inc ZTS $77.10 $104.88 +36%
Hansoh Pharmaceutical Group 3692 HK$35.12 HK$16.18 −54%
Divi's Laboratories Limited DIVISLAB ₹8,525 ₹1,228 −86%

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Frequently asked questions

Is Sandoz Group AG (SDZ) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of CHF 39.21 versus a price of CHF 68.36, about −43% upside (overvalued).
What is the fair value of SDZ?
Our model-based fair value for Sandoz Group AG is CHF 39.21 (as of Aug 27, 2026), built from audited fundamentals. The current price: CHF 68.36.
What is the quality score of SDZ?
Sandoz Group AG has a Quality Score of 56/100. 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 Sandoz Group AG (SDZ)?
Sandoz Group AG reported trailing-twelve-month revenue of about CHF 11.2B (latest available figure, as of Aug 27, 2026).
What is the net profit margin of SDZ?
The net profit margin of Sandoz Group AG is about 8.2%, meaning it keeps roughly 8.2% of revenue as net income. Based on the latest reported figures.
Does Sandoz Group AG pay a dividend?
Sandoz Group AG currently shows a dividend yield of about 1.48% relative to its recent price (as of Aug 27, 2026).
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