AstraZeneca (LSE:AZN): Is There Value Left After Recent Steady Gains?

AstraZeneca (LSE:AZN) shares have seen steady movement lately, prompting investors to reassess the potential value and long-term trajectory of the stock. The company’s recent returns reflect gradual but consistent growth over the past quarter.

See our latest analysis for AstraZeneca.

Momentum appears to be building for AstraZeneca, as recent announcements and an impressive 18.1% 90-day share price return have caught attention. The 1-year total shareholder return of 33.1% confirms it's been an attractive long-term hold.

If you're looking to uncover other top healthcare names showing strength, this is the perfect moment to explore See the full list for free.

With AstraZeneca trading at a notable discount to analyst price targets and boasting strong financial growth, the real question for investors is whether today’s price reflects a bargain entry or if future growth is already accounted for in the current valuation.

Most Popular Narrative: 10.7% Undervalued

AstraZeneca’s most widely followed narrative places its fair value ($144.38/share) well ahead of the latest close ($129). Investors are watching whether robust pipeline growth can keep up the current momentum.

The company's robust and diversified late-stage pipeline, particularly in oncology, rare diseases, and cardiovascular/metabolic therapies, is set to deliver multiple blockbuster launches over the next several years. Management estimates these new medicines could generate $10+ billion in peak risk-adjusted revenue, directly supporting both long-term high-margin revenue growth and future earnings expansion.

Read the complete narrative.

Want to know the secret fueling this valuation? It’s the promise of rising margins, bold profit assumptions, and a growth trajectory that’s anything but average. Discover what numbers, trends, and pipeline bets drive the fair value so far above the market price.

Result: Fair Value of $144.38 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, challenges such as looming patent expiries and regulatory shifts may threaten AstraZeneca’s profitability and test the assumptions behind today’s bullish narrative.

Find out about the key risks to this AstraZeneca narrative.

Another View: The Earnings Multiple Perspective

Looking at valuation from a different angle, AstraZeneca's shares are currently trading at a price-to-earnings ratio of 28x. That is well above the UK Pharmaceuticals industry average of 22.2x and also higher than their peers at 13x. However, the fair ratio, based on fundamentals, sits at 31.3x. This leaves some room for upside but also highlights overvaluation risk if expectations slip. Is the premium really justified, or is caution warranted?

Story Continues

See what the numbers say about this price — find out in our valuation breakdown.LSE:AZN PE Ratio as at Nov 2025

Build Your Own AstraZeneca Narrative

Don’t see eye to eye with these perspectives, or prefer charting your own course? Dive into the numbers yourself and see what story you uncover. Do it your way

A great starting point for your AstraZeneca research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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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.

Companies discussed in this article include AZN.L.

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