Nov. 10 at 1:08 PM
$OGN Organon's price-to-earnings (PE) ratio is around 2.5–3.4, far below the pharma industry average. Most large pharmaceutical peers, such as Pfizer and Novartis, trade at PE ratios of 17 to 29, with a sector median around 23–24.
If Organon were valued even at the lower end of its peer group PE ratios (e.g., PE of 15), and with a trailing 12-month EPS of about
$2.70–2.90, the fair price would be:
$40.50 per share as a hypothetical fair value. At an ultra-conservative “distressed” PE of 7 (still much higher than 2.5), OGN would trade near
$18.90.
