| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 74.30 | 87 |
| Intrinsic value (DCF) | 32.37 | -19 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Bayer AG (BAYN.SW) is a global life science company headquartered in Leverkusen, Germany, with a diversified portfolio spanning Pharmaceuticals, Consumer Health, and Crop Science. Operating since 1863, Bayer is a key player in the healthcare and agricultural sectors. Its Pharmaceuticals segment focuses on cardiology, women's health, oncology, hematology, and ophthalmology, while its Consumer Health division offers over-the-counter medicines, skincare, and nutritional supplements. The Crop Science segment provides innovative agricultural solutions, including crop protection products, seeds, and digital farming tools. Bayer collaborates with leading institutions like MD Anderson Cancer Center and the University of Oxford to advance drug development. With a strong global distribution network, Bayer serves wholesalers, pharmacies, hospitals, and farmers. Despite recent financial challenges, Bayer remains a significant force in the life sciences industry, leveraging its R&D capabilities and strategic partnerships to drive long-term growth.
Bayer AG presents a mixed investment case. The company's diversified business model across pharmaceuticals, consumer health, and agriculture provides resilience against sector-specific downturns. However, recent financial performance has been weak, with a net loss of €2.55 billion in the latest fiscal year. The company's high debt load (€40.7 billion) and ongoing litigation risks, particularly related to its Crop Science division, pose significant concerns. On the positive side, Bayer's strong R&D pipeline, strategic collaborations, and market-leading positions in key therapeutic and agricultural segments offer potential upside. Investors should weigh the company's long-term growth prospects against its near-term financial and legal challenges.
Bayer AG competes in three distinct but interconnected markets: pharmaceuticals, consumer health, and agricultural sciences. In pharmaceuticals, Bayer's strength lies in its specialized therapeutics, particularly in oncology and women's health, supported by its collaborations with top research institutions. However, it faces intense competition from larger pharma players with deeper pipelines. In Consumer Health, Bayer's well-known brands (e.g., Aspirin, Claritin) provide stability, but the segment is highly competitive with lower margins. The Crop Science division is Bayer's most distinctive asset, with its market-leading position in seeds and crop protection, bolstered by the acquisition of Monsanto. However, this segment also carries significant legal and reputational risks. Bayer's competitive advantage stems from its integrated life science approach, combining healthcare and agriculture, which few competitors can match. The company's main challenges are its high leverage and the need to innovate across all segments to maintain its market position against more focused competitors.