CSL Limited (CSL.AX)
Healthcare · ASX · Australia
Fundamentals
Valuation and ratings
CSL Limited trades at A$122.18, close to the A$109.38 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 53 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 13.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About CSL Limited
CSL Limited engages in the research, development, manufacture, market, and distribution of biopharmaceutical products and vaccines in Australia, the United States, Germany, the United Kingdom, Switzerland, China, Hong Kong, and internationally. The company operates through CSL Behring, CSL Seqirus, and CSL Vifor segments. The CSL Behring segment manufactures, markets, and distributes plasma products, gene therapies, and recombinants. This segment also offers therapies for people living with conditions in the immunology, hematology, cardiovascular and metabolic, respiratory, and transplant therapeutic areas. The CSL Seqirus segment manufactures, markets, and distributes influenza related products and pandemic services to governments. The CSL Vifor segment manufactures, markets, and distributes products in the therapeutic areas of iron deficiency and nephrology. It also licenses CSL intellectual property. CSL Limited was founded in 1916 and is headquartered in Melbourne, Australia.
CSL.AX passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is CSL Limited (CSL.AX) undervalued?
Against our discounted cash flow estimate of A$109.38, CSL.AX at A$122.18 is 10% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is CSL.AX's P/E ratio?
CSL.AX trades at 13.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.