* Note: Prices are in Million (M) USD.
Description:
Alvotech Holdings SA is a pioneering biopharmaceutical company headquartered in Iceland, dedicated to the development and commercialization of high-quality biosimilars that enhance patient access to critical biologic therapies. Utilizing advanced technological platforms and a strong research and development pipeline, Alvotech focuses on a diverse range of therapeutic indications, addressing the growing global demand for affordable medication alternatives. With a resolute emphasis on quality and innovation, Alvotech is strategically positioned to become a leading player in the fast-growing biosimilars market, driving both improved patient outcomes and cost efficiencies in healthcare.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $43 M
Debt : $1,138 M
EBITDA : $73 M
Net Debt (Debt - Cash): $1,095 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Life sciences
Industry: Biological products, (no disgnostic substances)
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 18.73
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 6 overlapping fiscal years (max 20).Average Free Cash Flow: $-244 M
Average Revenue: $133 M
Revenue Converted To Free Cash Flow (%): -183.3%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $490 M
Revenue 5 Years Ago (2019-12-31): $32 M
Total Growth over 5 Years: 1,434.2%
5-Year Revenue CAGR (Historical): 72.7%
Forward 5-Year CAGR (Tapered): 36.3%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $268 M
Share Count 5 Years Ago (2020-12-31): $31 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.34
Trailing 12-Month Earnings Per Share (EPS): $0.23
Average Earnings Per Share (EPS): $0.29
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Insufficient valid ROE years (found 0; need ≥ 3). Dropping ROE-based PE.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $5.37
52-Week Low: $4.32
Threshold Price (15% Above 52-Week Low): $4.97
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,655 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 12 points to above Alvotech (ALVO) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 1 Years Avg P/E (14.15)
× EPS ($0.29) = $4.06.
Last 1 Years Avg PE
14.15, Fair Value PE
12, Industry Based PE
18, Growth Based PE
50, Risk-Free Anchored PE (25% MoS)
18.12. Based on these 5 values, average assigned is
22.45. Value-Trades has assined P/E value
14.16. An average (Current Year EPS + Next Year EPS) earning per share is
$0.2867.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $6.44 (PE 22.45 × EPS $0.29)
Fair value using simple average PE × EPS: $4.06 (PE 14.15 × EPS $0.29)
Lesser of these two: $4.06
So the Final Fair Value is: $4.06
Understanding the Value-Trades P/E Blend (click to expand)
▾
What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $0.29
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 14.15 | $4.06 |
| 1 Yrs Avg-PE | 14.15 | $4.06 |
| Value-Trades Assigned | 14.16 | $4.06 |
Note: Only 1 years of reliable P/E data available. Fair value is calculated using blended models to reduce bias.
