| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 43.75 | -2 |
| Intrinsic value (DCF) | 15.54 | -65 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Bayer AG (BAYN.DE) is a global life science company headquartered in Leverkusen, Germany, with a diversified portfolio spanning Pharmaceuticals, Consumer Health, and Crop Science. Founded in 1863, Bayer operates in over 90 countries, delivering innovative healthcare solutions and agricultural products. The Pharmaceuticals segment focuses on cardiology, women's health, oncology, and ophthalmology, while Consumer Health provides over-the-counter medicines, skincare, and nutritional supplements. The Crop Science division offers advanced agricultural solutions, including seeds, crop protection, and digital farming tools. Bayer collaborates with leading research institutions like MD Anderson Cancer Center and the University of Oxford to drive innovation. Despite legal challenges related to glyphosate and Monsanto acquisition liabilities, Bayer remains a key player in healthcare and agribusiness, leveraging its R&D capabilities and global distribution network.
Bayer AG presents a mixed investment case. The company's diversified business model across pharmaceuticals, consumer health, and agriculture provides resilience, but significant legal liabilities (notably from glyphosate litigation) and high debt (€40.7B) weigh on financial stability. The Crop Science segment is a market leader, benefiting from global food demand, while Pharmaceuticals faces patent cliffs and competition. Consumer Health offers steady cash flows but limited growth. With negative net income (€-2.55B in 2024) and a diluted EPS of -€2.6, Bayer's valuation reflects these risks. However, its strong R&D pipeline (e.g., cell/gene therapy collaborations) and €7.37B operating cash flow suggest potential for recovery if legal pressures ease. Investors should monitor litigation outcomes and debt reduction efforts.
Bayer AG competes in three distinct sectors, each with unique competitive dynamics. In Pharmaceuticals, its strength lies in women's health (e.g., Mirena IUD) and oncology (Nubeqa), though it lags behind giants like Roche and Pfizer in scale. The Crop Science division, bolstered by Monsanto's acquisition, leads in seeds (soybeans, cotton) and glyphosate-based herbicides, but faces regulatory scrutiny and competition from Corteva and BASF. Consumer Health benefits from strong brands (Aspirin, Claritin), though it trails J&J and GSK in global OTC market share. Bayer's key advantage is vertical integration in agriculture and cross-segment R&D synergies. However, its legal liabilities (glyphosate lawsuits) and high leverage (debt-to-equity ~200%) weaken its competitive flexibility. Strategic collaborations (e.g., with Exscientia in AI drug discovery) aim to offset pipeline gaps. Long-term competitiveness hinges on resolving litigation and innovating in biologics/digital agriculture.