HUTCHMED (China) Ltd
LSE:HCM
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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P/E
Price to Earnings (P/E) ratio shows how much investors pay for each dollar of a company`s earnings. It`s calculated by dividing the company`s market value by its total earnings.
Price to Earnings (P/E) ratio shows how much investors pay for each dollar of a company`s earnings. It`s calculated by dividing the company`s market value by its total earnings.
Valuation Scenarios
If P/E returns to its 3-Year Average (5.6), the stock would be worth GBX213.54 (8% upside from current price).
| Scenario | P/E Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 5.2 | GBX198.5 |
0%
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| 3-Year Average | 5.6 | GBX213.54 |
+8%
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| Industry Average | 10.1 | GBX385.83 |
+94%
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| Country Average | 12.7 | GBX485.03 |
+144%
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Forward P/E
Today’s price vs future net income
| Today's Market Cap | Net Income | Forward P/E | ||
|---|---|---|---|---|
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GBX21.4B
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/ |
Jan 2026
$456.9m
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= |
|
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GBX21.4B
|
/ |
Dec 2026
$58.9m
|
= |
|
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GBX21.4B
|
/ |
Dec 2027
$97m
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= |
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GBX21.4B
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/ |
Dec 2028
$149.4m
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= |
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GBX21.4B
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/ |
Dec 2029
$161.6m
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= |
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Forward P/E shows whether today’s P/E still looks high or low once future net income are taken into account.
Peer Comparison
| Market Cap | P/E | ||||
|---|---|---|---|---|---|
| HK |
H
|
HUTCHMED (China) Ltd
LSE:HCM
|
18.6B GBP | 5.2 | |
| US |
|
Eli Lilly and Co
NYSE:LLY
|
804.2B USD | 39 | |
| US |
|
Johnson & Johnson
NYSE:JNJ
|
547.4B USD | 26 | |
| CH |
|
Roche Holding AG
SIX:ROG
|
248.4B CHF | 20.1 | |
| UK |
|
AstraZeneca PLC
LSE:AZN
|
212.4B GBP | 28 | |
| US |
|
Merck & Co Inc
NYSE:MRK
|
274.6B USD | 15 | |
| CH |
|
Novartis AG
SIX:NOVN
|
216.3B CHF | 20.6 | |
| IE |
E
|
Endo International PLC
LSE:0Y5F
|
244.4B USD | -83.6 | |
| DK |
|
Novo Nordisk A/S
CSE:NOVO B
|
1.1T DKK | 11.5 | |
| US |
|
Pfizer Inc
NYSE:PFE
|
149.3B USD | 19.2 | |
| US |
|
Bristol-Myers Squibb Co
NYSE:BMY
|
115.9B USD | 16.4 |
Market Distribution
| Min | 0 |
| 30th Percentile | 8.8 |
| Median | 12.7 |
| 70th Percentile | 19.3 |
| Max | 6 260.9 |
Other Multiples
HUTCHMED (China) Ltd
Glance View
HUTCHMED (China) Ltd., a hybrid of innovation and tradition, stands at the intersection of global pharmaceutical ambitions and Chinese herbal expertise. Born out of a joint venture between Hutchison Whampoa and Chi-Med, the company has steadily carved out a niche by developing a dual-pronged business model that merges cutting-edge biotechnology with traditional Chinese medicine. This hybrid approach enables HUTCHMED to leverage the best of both worlds by combining the rich pharmacological heritage of China with modern scientific research. Its pipeline includes a range of drugs aimed at treating various cancers and immunological disorders, developed through deep-pocketed collaborations and alliances with multinational corporations. Revenue streams at HUTCHMED primarily flow from drug discoveries and developments that pass through rigorous clinical trials, reaching commercialization both in China and internationally. The company invests significantly in R&D to advance its pipeline, while also generating income through strategic partnerships that involve licensing agreements and joint ventures. This allows HUTCHMED not only to mitigate risks associated with drug development but also to tap into diverse markets by navigating a multifaceted regulatory landscape. By paving the way for western pharmaceutical technologies alongside traditional medicinal insights, HUTCHMED creates a sustainable growth trajectory in an ever-evolving global healthcare market.