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DCF Valuation
Base-case fair value
$27.57
Intrinsic $36.76 · 25% MOS
Current price: $32.56
Base-case summary
Our base-case DCF for Teva Pharmaceutical Industries Ltd (TEVA) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 37.8% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $1.2B in trailing free cash flow, this produces an intrinsic value of $36.76 per share. A 25% safety margin gives a fair value of $27.57, suggesting the stock is currently 15% overvalued against the $32.56 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$1.2B
Cash & equivalents
$3.7B
Total debt
$19.6B
Shares outstanding
1.2B