Viatris Inc. (VTRS)
Valuation Overview•Is Viatris Inc. Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Fragile underlying quality score of 28/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Highly distressed profile flashing severe fundamental warning signs.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
VTRS struggles with subpar profitability and pressured margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is facing top-line contraction (-4.2% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (1.0%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $3.5B | -3.0% | -4.2% | +3.7% | +4.3% | |
| EBITDA | -$32.2M | — | -69.2% | — | — | |
| Net Income | $176.4M | -454.2% | — | — | — | |
| EPS (Diluted) | $0.15 | -466.0% | — | — | — | |
| Free Cash Flow | $348.4M | -2.0% | -8.3% | +28.6% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 34.4% | 38.3% | 37.2% | 36.9% |
| Operating Margin | 1.0% | -4.5% | -0.8% | 2.7% |
| Net Margin | -2.0% | -9.5% | -4.6% | -1.5% |
| FCF Margin | 11.7% | 14.0% | 14.3% | 13.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.50 | $0.59 | +17.5% | ||
| Q1'26 | $0.53 | $0.57 | +7.1% | ||
| Q4'25 | $0.62 | $0.67 | +7.9% | ||
| Q3'25 | $0.56 | $0.62 | +11.5% | ||
| Q2'25 | $0.49 | $0.50 | +1.6% | ||
| Q1'25 | $0.61 | $0.54 | -11.5% | ||
| Q4'24 | $0.68 | $0.75 | +10.8% | ||
| Q3'24 | $0.68 | $0.69 | +1.8% |
Total return is +80.7% (1Y), outperforming the benchmark by +55.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +25.3% | +16.0% | — |
| 1Y | +80.7% | +55.7% | +5.5% |
| 3YCAGR | +18.2% | -0.5% | +14.1% |
| 5YCAGR | +4.5% | -8.2% | +16.7% |
| 10YCAGR | -8.9% | -22.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Viatris Inc. (VTRS) valuation, health, and returns.
Viatris Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +224.7% upside to DCF intrinsic value of $49.91)
Viatris Inc. has multiple valuation anchors: DCF Intrinsic Value: $49.91 | Peer Relative Fair Value: $27.58 | Wall Street Analyst Target: $17.40 (implying +13.2% upside). A convergence of these signals offers higher conviction.
Viatris Inc. displays weak financial health with a composite quality score of 28/100, supported by a Altman Z-Score of 0.2 (distress zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of -6.6%.
Viatris Inc. pays a 3.1% dividend yield, covered by a 0% payout ratio with 0 years of growth, supplemented by a 2.8% buyback yield.
Viatris Inc.'s current growth trajectory is Stable. The company achieved -3.0% 1Y revenue growth and -466.0% 1Y EPS growth, compared to its 3Y revenue CAGR of -4.2%.
Wall Street consensus is Hold based on 13 analysts, beating EPS expectations in 75% of recent quarters with a 5-quarter streak. The consensus price target represents a +13.2% change from current levels.
Investment risks for Viatris Inc. include: -19.7% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 0.85x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.