Roche Holding (SWX:ROG)
Intro Roche is a more than 125-year-old pharmaceutical and diagnostics company with its head office in Switzerland. The majority of the bearer shares is still in the hands of the heirs of the company’s founder. That being said, there are also non-voting equity securities (NES) outstanding (see ticker symbol above). Both share classes are listed with the NES showing significantly higher trading volume. Valuation Probably due to some disappointments in R&D, ceasing of Covid-related profits in the diagnostics segment and different capital structure due to purchase of Novartis’ stake in Roche in 2021, the price of the NSE has come down by around 30%. Let’s see if we can find some value in here after the price drop: Core EPS (excluding for instance some global restructuring plans, amortization and impairment of goodwill and intangibles) has been around CHF 20 per security, which translates into a Core P/E of around 14x, which seems not very demanding for a high-quality...