If you are wondering whether ANI Pharmaceuticals’ current share price still offers value, you are not alone. This article will walk through what that price could imply about the company.
The stock most recently closed at US$81.84, with returns of 3.0% over the last 30 days and 35.2% over the past year. The 3 year and 5 year returns sit at 81.9% and 159.9% respectively.
Recent attention on ANI Pharmaceuticals has been shaped by ongoing product portfolio developments and regulatory updates across the specialty pharma space, as investors continue to reassess risk and opportunity in this niche. This backdrop helps frame why the current share price and past returns may look the way they do, and why many investors are now focusing closely on valuation.
On our framework of six valuation checks, ANI Pharmaceuticals currently has a value score of 3/6. We will unpack this using several common valuation approaches, before finishing with a more holistic way to think about what the stock might be worth.
A Discounted Cash Flow, or DCF, model takes estimates of the cash a company may generate in the future and discounts those amounts back into today’s dollars to arrive at an estimate of what the business could be worth now.
For ANI Pharmaceuticals, the model used is a 2 Stage Free Cash Flow to Equity approach, based on free cash flow of about $138.4 million over the last twelve months. Analyst input is provided for near term cash flows, with Simply Wall St extending those estimates further out. Within the ten year projections, annual free cash flow figures range from around $161.3 million in 2026 to about $401.6 million in 2035, all in $.
When those projected cash flows are discounted back, the model arrives at an estimated intrinsic value of around $381.32 per share. Against the recent share price of US$81.84, this indicates an intrinsic discount of about 78.5%, meaning the stock screens as significantly undervalued according to this method.
For a company that is generating profits, the P/E ratio is a useful shorthand for how much investors are paying for each dollar of earnings. It ties the share price directly to the bottom line, which is what ultimately supports long term valuations.
What counts as a “normal” P/E depends on what investors expect for growth and how they view the risks. Higher expected earnings growth and lower perceived risk can justify a higher P/E, while slower growth or higher uncertainty usually point to a lower multiple.
ANI Pharmaceuticals currently trades on a P/E of 50.10x, compared with the Pharmaceuticals industry average of about 21.18x and a peer average of 18.18x. Simply Wall St’s Fair Ratio for ANI Pharmaceuticals is 21.47x. This Fair Ratio is a proprietary estimate of what a reasonable P/E could be, based on factors such as the company’s earnings growth profile, industry, profit margins, market cap and risk characteristics.
Because the Fair Ratio blends these company specific inputs, it can offer a more tailored yardstick than a simple comparison against the industry or a peer group. On this basis, ANI Pharmaceuticals’ current P/E of 50.10x sits above the Fair Ratio of 21.47x, indicating the shares look expensive on earnings.
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which let you tell the story behind the numbers you are using for ANI Pharmaceuticals, including your view of fair value and your estimates for future revenue, earnings and margins.
A Narrative connects what you believe about the company to a clear financial forecast, and then to a fair value that you can compare directly with today’s share price.
On Simply Wall St, used by millions of investors, Narratives sit in the Community page and are designed to be easy to use. They help you quickly see whether your Fair Value sits above or below the current price so you can decide if the stock looks attractive or expensive on your terms, and they update automatically when fresh information like news or earnings is released.
For ANI Pharmaceuticals, one investor might create a Narrative with relatively optimistic revenue growth, expanding margins and a higher fair value, while another might assume slower growth, stable margins and a lower fair value, giving you a clear view of how different stories lead to different estimates.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
