Market Pulse53Neutral

Teva Pharmaceutical Industries LimitedOpportunity Rank #272(TEVA) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$31.18

Last updated: Jul 24, 2026

Price vs Intrinsic Value

$31.18
Price
$5.68
Intrinsic Value
Overvalued by 82%MOS: $4.54

Fundamental Score

28/100
Bearish

Weighted across 6 signals

Narrative Score

50/100
Weak

No change vs previous

Trend Score

32/100
Weak

As of 2026-07-24

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The intrinsic value of Teva Pharmaceutical Industries Limited (TEVA) is estimated at $5.68 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $31.18, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -5.56% long-term growth rate and a 9.00% discount rate (calculated: 7.58%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Teva Pharmaceutical Industries Limited (TEVA) is estimated at $5.68 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $31.18, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -5.56% long-term growth rate and a 9.00% discount rate (calculated: 7.58%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$5.68
-81.78% downside
20% margin of safety: $4.54
Years: 10Growth Rate: -5.56%
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Capital Efficiency

Average Quarterly ROIC
4.23%
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
81.8% premium to price
0
FCF Yield
6.2% trailing FCF yield
100
ROIC vs WACC
ROIC 4.2% vs WACC 11.0% (0.4x)
19
Net Debt / FCF
5.7x net debt to FCF
0
Buybacks
Share count growing
30
FCF CAGR (5Y)
4.7% 5Y FCF CAGR
25
Strengths: FCF Yield. Concerns: DCF Discount, ROIC vs WACC.

Narrative Details

50/100
Weak
Vs 6-Month Baseline:Low (3rd pct)Weighted across 4 recent drivers
Trend: Deteriorating downConfidence: 82%Updated: 1d ago
Sources: 33 (28 News · 5 Analyst)
Drivers(last 30 days)
22 news sentiment+0.4
5 regulatory scrutiny-0.4
Legal risk+0.0
5 analyst reiterations0.0

Trend Details

32/100
WeakAs of 2026-07-24310 daily bars used
Price vs 50 EMA-6.1%
Price vs 21 EMA-4.4%
6M Relative Strength vs SPY-9.9%
Price vs 21 EMA25 · -4.4%
Price vs 50 EMA22 · -6.1%
21 EMA vs 50 EMA35 · -1.8%
3M RS vs SPY28 · -5.6%
6M RS vs SPY25 · -9.9%
Distance from 52W High70 · -15.2%

Investment Coach

Updating... 45d ago
AVOIDConfidence: 85%
Thesis
Teva Pharmaceutical Industries Limited is significantly overvalued with an estimated fair value 82% below its current price, supported by weak fundamentals and returns trailing its cost of capital. The company's elevated leverage further undermines its financial stability, making it an unattractive investment at present.
Key Risk
The key risk is that Teva's financial performance and valuation could deteriorate further if leverage remains high and returns do not improve relative to its cost of capital.
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 score direction
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Historical Growth Rates
Free Cash Flow- - -Trend CAGR: -5.56%5 Year CAGR: 10.65%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$2,256$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 functions as a global pharmaceutical enterprise, involved in the conception, manufacturing, marketing, and provision of a broad spectrum of generic, specialty, and biopharmaceutical products throughout North America, Europe, and various international markets. The company's diverse product range includes sterile items, hormones, potent drugs, and cytotoxic agents, available in numerous forms like tablets, capsules, injectable solutions, inhalable preparations, liquids, transdermal patches, topical ointments, and creams. Additionally, Teva develops, produces, and sells active pharmaceutical ingredients (APIs). The firm prioritizes several key therapeutic domains: central nervous system disorders, pain management, respiratory ailments, and oncology. In the central nervous system sector, prominent products include Copaxone, intended for relapsing forms of multiple sclerosis; AJOVY, prescribed for preventing migraines; and AUSTEDO, which targets tardive dyskinesia and chorea linked to Huntington's disease. For respiratory conditions, Teva offers medications such as ProAir, QVAR, ProAir Digihaler, AirDuo Digihaler, ArmonAir Digihaler, BRALTUS, CINQAIR/CINQAERO, DuoResp Spiromax, and AirDuo RespiClick/ArmonAir RespiClick, all designed to treat asthma and chronic obstructive pulmonary disease. The oncology portfolio features therapies like Bendeka, Treanda, Granix, Trisenox, Lonquex, and Tevagrastim/Ratiograstim. Teva Pharmaceutical Industries Limited is also engaged in a collaboration with MedinCell to advance and commercialize multiple long-acting injectable formulations, notably a risperidone suspension for individuals affected by schizophrenia. The company was established in 1901 and its primary headquarters are located in Tel Aviv-Yafo, Israel.