Market Pulse50Neutral

Teva Pharmaceutical Industries LimitedOpportunity Rank #278(TEVA) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$28.77

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$28.77
Price
$4.27
Intrinsic Value
Overvalued by 85%MOS: $3.42

Fundamental Score

28/100
Bearish

Weighted across 6 signals

Narrative Score

59/100
Improving

No change vs previous

The intrinsic value of Teva Pharmaceutical Industries Limited (TEVA) is estimated at $4.27 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $28.77, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -5.66% long-term growth rate and a 9.00% discount rate (calculated: 7.20%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Teva Pharmaceutical Industries Limited (TEVA) is estimated at $4.27 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $28.77, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -5.66% long-term growth rate and a 9.00% discount rate (calculated: 7.20%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$4.27
▼ -85.16% downside
20% margin of safety: $3.42
Years: 10Growth Rate: -5.66%
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Capital Efficiency

Average Quarterly ROIC
4.05%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

28/100
BearishWeighted across 6 signals
DCF Discount
85.2% premium to price
0
FCF Yield
6.4% trailing FCF yield
100
ROIC vs WACC
ROIC 4.1% vs WACC 11.0% (0.4x)
18
Net Debt / FCF
6.3x net debt to FCF
0
Buybacks
Share count growing
30
FCF CAGR (5Y)
3.7% 5Y FCF CAGR
25
Strengths: FCF Yield. Concerns: DCF Discount, ROIC vs WACC.

Narrative Details

59/100
Improving
Vs 6-Month Baseline:Below Avg (37th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 87%Updated: 42m ago
Sources: 47 (40 News · 7 Analyst)
Drivers(last 30 days)
8 regulatory scrutiny+0.6
28 news sentiment+0.3
Upgrade headlines+0.0
Legal risk+0.0
2 earnings beat+0.0
7 analyst reiterations0.0

Investment Coach

Updated 14h ago
AVOIDConfidence: 85%
Thesis
Teva Pharmaceutical Industries Limited is significantly overvalued with its current price approximately 84% above the estimated fair value, supported by weak fundamentals and returns that lag its cost of capital. The company's elevated leverage ratio further exacerbates financial risk, making it an unattractive investment at present.
Key Risk
The primary risk is the company's inability to improve its return on invested capital relative to its weighted average cost of capital, which could further depress valuation and financial stability.
Signals To Watch
  • Price moves to at least a mid-teens discount to fair value
  • Sustained improvement in ROIC versus WACC spread
  • Meaningful shifts in the narrative trend or fundamental score direction
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Historical Growth Rates
Free Cash Flow- - -Trend CAGR: -5.66%5 Year CAGR: 9.59%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$2,150$2,150$1,745$1,894$2,138$1,360$1,794$657$3,097$4,381$6,126$6,314$6,056$4,268$5,676$5,187$4,846$4,092$3,912$2,355$2,448

How Intrinziq Estimates Fair Value

Intrinziq estimates Teva Pharmaceutical Industries Limited's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Teva Pharmaceutical Industries LimitedHealthcare

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, and internationally. The company offers sterile products, hormones, high-potency drugs, and cytotoxic substances in various dosage forms, including tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams. It also develops, manufactures, and sells active pharmaceutical ingredients. In addition, it focuses on the central nervous system, pain, respiratory, and oncology areas. Its products in the central nervous system include Copaxone for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine; and AUSTEDO for the treatment of tardive dyskinesia and chorea associated with Huntington disease. The company's products in the respiratory market comprise ProAir, QVAR, ProAir Digihaler, AirDuo Digihaler, and ArmonAir Digihaler, BRALTUS, CINQAIR/CINQAERO, DuoResp Spiromax, and AirDuo RespiClick/ArmonAir RespiClick for the treatment of asthma and chronic obstructive pulmonary disease. Its products in the oncology market include Bendeka, Treanda, Granix, Trisenox, Lonquex, and Tevagrastim/Ratiograstim. Teva Pharmaceutical Industries Limited has a collaboration MedinCell for the development and commercialization of multiple long-acting injectable products, a risperidone suspension for the treatment of patients with schizophrenia. The company was founded in 1901 and is headquartered in Tel Aviv-Yafo, Israel.