QualityDipStocks / Health Care · Pharmaceuticals
Teva Pharmaceutical Industries TEVA
Outside our quality screen, so we don’t track its dips. It’s at its 52-week high.
Outside our quality screen, trading well above our fair value estimate, 5% over its Market Value.
- Fair value est.
- $20.47−51%
- Market Value
- $40.24price +5%
- Off 52-wk high
- at the high
- Risk vs market
- Below marketbeta 0.71
4 bullish · 5 bearish See why
Key levels
Every level vs today’s $42.09
- 52-wk lowlowest close, 1 year$20.03−52.4%
- Fair value est.base case$20.47−51.4%
- Market Valueavg paid since Sep 16$40.24−4.4%
- PriceFri Oct 30 close$42.09you are here
- 52-wk highhighest close, 1 year$42.09at the price
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 5.0% ±2 points. Bear = 10.5% and 3.0%; bull = 8.5% and 7.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is above even the bull case.
What the price implies To be worth today’s price, TEVA’s free cash flow would need to grow about 18% a year for five years; our estimate uses 5%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much TEVA moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves a bit less than the market, but its own price swings are 3.1× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.71
- Volatility
- 39% vs 13% SPY
- Correlation SPY
- 0.23
- Correlation QQQ
- 0.15
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
ProfitabilityOperating margin widened to 12.5% in FY2025 from 2.7% in FY2023 (SEC filings).
Cash returnsFree cash flow grew 51% over the last 12 months vs the 12 months before.
ProfitabilityReturn on invested capital of 18%, above the 9.5% discount rate our DCF uses.
ProfitabilityGross margin widened to 51.8% in FY2025 from 48.2% in FY2023 (SEC filings).
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $20.47, 51% below the price.
ValuationP/E of 69.5× vs a 29.2× median for the 86 Health Care companies we cover.
GrowthSales grew 4.1% over the last 12 months, below the 8.6% median for the 101 Health Care companies we cover.
QualityDoesn’t pass our quality screen: sales down vs the year-ago quarter; net debt 5.1× EBITDA (limit 3×).
RiskReports earnings Nov 3 (consensus EPS $0.70): results can move the price sharply and reset Market Value.
Who’s talking about it
Notable investors, executives, analysts and public figures on Teva Pharmaceutical Industries in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Pharmaceuticals
All fundamentals
P/E 69.5 · FCF yield 2.7% · ROE 10%
Valuation
- P/E
- 69.5×Health Care median 29.2×
- Price / FCF
- 36.4×
- FCF yield
- 2.7%
- EV / EBITDA
- 19.3×
- Price / sales
- 2.83×
- Price / book
- 6.32×
- Market cap
- $49.0Bprice × diluted shares
- Enterprise value
- $49.9B
Growth
- Revenue, 12 months
- $17.3B
- Sales growth, 12 months
- +4.1%vs the 12 months before
- Sales growth, 3 yrs
- +5.0%/yrfrom FY2022
- Diluted EPS, 12 months
- $0.60
- EPS growth, last FY
- n/afewer than two years of diluted EPS
- Net income, 12 months
- $706M
- Net income growth
- n/anot reported in its SEC filings
Profitability
- Gross margin
- 52.5%
- Operating margin
- 9.3%
- Net margin
- 4.1%
- FCF margin
- 7.8%
- Return on equity
- 10%
- Return on invested capital
- 18%
Balance sheet
- Cash & short-term inv.
- $3.7B
- Total debt
- $4.5B
- Net cash
- −$845M
- Debt / equity
- 0.58×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $1.3B
- FCF growth, 12 months
- +51%
- Dividend yield
- n/ano dividend payments tagged
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- +0.3%diluted shares vs a year ago
- Stock-based comp
- $168M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From Teva Pharmaceutical Industries’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $20.47 · MV $40.24 · FCF value $29.41
Assumes 5.0% growth for 5 years (revenue grew 5.0% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $1.16 a share (trailing 12 months to Jun 30, 2026), from the 10-Q filed Jul 29, 2026. Net debt $845M, not deducted.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 64 · 5 days +6.8%
The business
FCF $1.4B · Sales −1%
- Free cash flow, 12 months$1.4B
- Free-cash-flow yield2.8%
- Free-cash-flow margin8%
- Gross margin52%
- Operating margin19%
- Return on invested capital10%
- Return on equity9%
- Sales growth (latest quarter vs year-ago quarter)−1%
- Net debt / EBITDA5.1×
Next report
Nov 3
- DateTue Nov 3, before the open
- Consensus EPS$0.70
- Year-ago EPS$0.75
- QuarterSep/2026
From Nasdaq’s earnings calendar. A report resets Market Value.
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
TEVA is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.