Pharmaceutical giant AstrasenecThe price of shares (LSE: AZN) dropped by 18% compared to the highest level of September 3 13.38 £. This price meant that the first company in the UK achievement of market capitalization in the amount of 200 billion pounds+.

Since then, a significant part of the decrease in share prices was caused by uncertainty about American tariffs. On April 2, the announcement placed the basic 10% fee for UK export to the country. However, US President Donald Trump suggested that he could provide 25% of fees for imported pharmaceuticals.

There have not been such fees yet, but the risk of one still exists.

Another reason for the decline in shares was the uncertainty related to ongoing legal investigations in the field of Chinese operations. They remain a risk for the company again.

After saying, the forecasts of consensus analysts are such that Astrazeneca earnings will boost by 15.3% annually by the end of 2017. And here the boost is the power of share price (and dividends) of profits in a long -term perspective.

How does the company expect?

The company’s results in the first place of 2025 showed that revenues dropped by 10% a year to USD 13.58 billion (10 billion GBP). Zysk per share (EPS) increased by 32% to 188 cents in the same period. Revenues are the company’s total income, while earnings remain after deducting expenses.

He emphasized five positive tests of phase III tests, which were designed to show whether the product benefits a specific population. They included a key drug cancer drug Enter and lung drug Poison.

Since then, several more positive treatments have appeared. These include the announcement on June 6 about the approval of the European Union Calquence For adults with non -chronic lymphocytic leukemia. And on May 19 he saw positive results for his anti -inflammatory asthma rescue therapy Airsupra.

In the case of 2025, the company forecasts a high one -digit interest and low two -digit EPS growth. It also designs USD 80 billion in revenues by 2030.

Is there value in the price of the shares?

The price ratio for sale 4.1 Astrazeneca is very underestimated in relation to the average of its competitors of 9.6. They include Abbvie at 5.8, Novo Nordisk at 7.2, Pfizer at 11.2 and Eli Lilly at 14.2.

It is also the main opportunity in relation to the price to profit, trading at level 29.1 compared to the peer average 49.3.

The same applies to his price ratio to the book 15.7 compared to the average 75.3 of its competitors.

I conducted an analysis of discounted cash flows to indicate where its price should be, obtained from cash flow forecasts for the company.

This shows that the price of Astrazeneca shares is 39% underestimated in the current 108.97 £.

Therefore, the fair value is technically $ 178.64.

Will I buy more shares?

For many years I have had shares at the Big Pharmaceutical Company as one of my basic growth actions. I kept even when I sold many other growth actions when I finished 50 years ago to focus on dividend actions. This is to maximize my income from these high herds.

The main reason I ran Astrazeneca – despite only dividend performance about 2% – was its potential of high earnings. I believe that this should exceed its price – and dividends – much higher in the long term.

My view remains intact, so I will buy more shares as soon as possible at their price.