Does Alvotech’s 35% Weekly Drop Reveal a Rare Opportunity for 2025 Investors?

Simply Wall St.11-08

Wondering if Alvotech is undervalued or if there's a rare opportunity hiding in the recent stock swings? You're not alone. Let's dig into the numbers to see what the market might be missing. Alvotech'...

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Alvotech'...</p>\n\n<a href=\"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-alvo/alvotech/news/does-alvotechs-35-weekly-drop-reveal-a-rare-opportunity-for\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Does Alvotech’s 35% Weekly Drop Reveal a Rare Opportunity for 2025 Investors?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDoes Alvotech’s 35% Weekly Drop Reveal a Rare Opportunity for 2025 Investors?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-08 04:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-alvo/alvotech/news/does-alvotechs-35-weekly-drop-reveal-a-rare-opportunity-for><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wondering if Alvotech is undervalued or if there's a rare opportunity hiding in the recent stock swings? You're not alone. Let's dig into the numbers to see what the market might be missing. Alvotech'...</p>\n\n<a href=\"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-alvo/alvotech/news/does-alvotechs-35-weekly-drop-reveal-a-rare-opportunity-for\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"FCF","symbol_name":"第一联邦金融","start_time":0,"source_url":"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-alvo/alvotech/news/does-alvotechs-35-weekly-drop-reveal-a-rare-opportunity-for","article_id":"2581483110","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/6111000-choice1-main-header/1585186710114"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-alvo/alvotech/news/does-alvotechs-35-weekly-drop-reveal-a-rare-opportunity-for","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2581483110","pubTimestamp":1762547269,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Wondering if Alvotech is undervalued or if there's a rare opportunity hiding in the recent stock swings? You're not alone. Let's dig into the numbers to see what the market might be missing.\nAlvotech's share price has been under pressure lately, dropping 35.5% in the last week and declining 61.6% year-to-date. This hints at a dramatic shift in market sentiment.\nMuch of the recent movement can be traced to headlines around regulatory developments and ongoing biosimilar approvals, which have...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"FCF":"第一联邦金融","ISBC":"投资者银行","BK4139":"生物科技","ALVO":"Alvotech","BK4211":"区域性银行","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc"},"translate_title":"Alvotech 35%的周跌幅是否为2025年投资者带来了难得的机会？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"ALVO":1.5,"ISBC":1.5,"FCF":1},"content_text":"Wondering if Alvotech is undervalued or if there's a rare opportunity hiding in the recent stock swings? You're not alone. Let's dig into the numbers to see what the market might be missing. Alvotech's share price has been under pressure lately, dropping 35.5% in the last week and declining 61.6% year-to-date. This hints at a dramatic shift in market sentiment. Much of the recent movement can be traced to headlines around regulatory developments and ongoing biosimilar approvals, which have both stoked excitement and sparked concerns for investors. News of delays and uncertainty about competitive products has played a significant role in shaping expectations in recent weeks. On a purely numerical basis, Alvotech currently scores a 4 out of 6 on our valuation checks, suggesting several indicators point to undervaluation. Next, we'll break down the classic ways investors estimate value. Stay tuned, because there's a more insightful angle we'll reveal by the article's end.  Find out why Alvotech's -60.0% return over the last year is lagging behind its peers. AdvertisementApproach 1: Alvotech Discounted Cash Flow (DCF) Analysis The Discounted Cash Flow (DCF) model is a valuation method that estimates a company’s intrinsic value by projecting its future cash flows and discounting them to today’s dollars. Essentially, it tries to answer the question: what are all of Alvotech’s expected future profits worth today? Alvotech’s most recent Free Cash Flow (FCF) stands at negative $149.2 million, a reflection of current heavy investments and growth spending. According to analyst reports and projections, Alvotech’s annual FCF is expected to grow sharply over the next several years, turning positive and reaching $561 million by 2029. Looking out a full ten years with a combination of analyst estimates and extended forecasts, projected FCF rises steadily, topping out at around $945.7 million by 2035. All amounts are denominated in US dollars. Using these numbers and a 2 Stage Free Cash Flow to Equity model, Alvotech’s estimated intrinsic value comes out to $44.36 per share. This is dramatically higher than the current share price, indicating the stock is trading at an 88.6% discount to its calculated fair value. According to this approach, Alvotech appears deeply undervalued if the company can deliver on its future cash flow growth expectations. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Alvotech is undervalued by 88.6%. Track this in your watchlist or portfolio, or discover 860 more undervalued stocks based on cash flows. ALVO Discounted Cash Flow as at Nov 2025 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Alvotech. Approach 2: Alvotech Price vs Earnings The Price-to-Earnings (PE) ratio is often the go-to metric for valuing profitable companies, as it measures what investors are willing to pay today for a dollar of future earnings. For companies like Alvotech that are transitioning into profitability and showing growth, the PE ratio is especially useful in comparing its valuation to both peers and the broader sector. Growth expectations and overall risk play a big part in shaping what counts as a \"normal\" or \"fair\" PE ratio. High growth companies tend to justify higher multiples, while more established or riskier firms command lower ones. In the case of Alvotech, the current PE ratio stands at 25x. This is below its peer group average of about 41.7x, but still significantly above the biotech industry average of 16.2x. This places Alvotech somewhere between discounted and priced for growth, as investors anticipate improved performance ahead. To dig deeper, Simply Wall St calculates a custom “Fair Ratio” for this case, which is 33.2x and represents the PE you would typically expect for a company with Alvotech’s profile, factoring in not just its sector but also elements like its earnings growth outlook, profitability, risks, and market cap. This methodology offers a more nuanced benchmark compared to blunt peer or industry averages, which can be skewed by outliers or differences in company size and business models. With Alvotech’s actual PE of 25x coming in below its Fair Ratio of 33.2x, the company appears attractively valued by this measure. The numbers suggest that, despite market uncertainty, the current price may understate Alvotech’s potential if growth forecasts prove accurate. Result: UNDERVALUED NasdaqGM:ALVO PE Ratio as at Nov 2025 PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1402 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Alvotech Narrative Earlier we mentioned that there's an even better way to understand valuation, so let's introduce you to Narratives, a smarter, more dynamic approach to investment decision making available to all Simply Wall St users. A Narrative lets you connect your view of Alvotech’s business story with your own forecasts and assumptions about future revenue, earnings, and margins. This essentially creates your own fair value and investment roadmap. Instead of looking only at static ratios, Narratives link the company’s evolving fundamentals to your expectations, updating as fresh news or earnings are released, and letting you easily compare your Fair Value with the current Price right inside the Community page. This makes it simple to see at a glance whether your story says Alvotech is a buy, hold, or sell, and how that compares to the market’s consensus or other investors’ perspectives. For example, right now some community Narratives for Alvotech have bullish users forecasting rapid biosimilar adoption, strong operational gains, and a fair value as high as $28 per share. More cautious members are factoring in ongoing regulatory risk and margin pressures and see fair value closer to $14. Narratives make it easy to adjust your outlook and spot opportunities or risks as they emerge. Do you think there's more to the story for Alvotech? Head over to our Community to see what others are saying! NasdaqGM:ALVO Community Fair Values as at Nov 2025  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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