On July 20, 2026, Teva Pharmaceutical Industries Ltd TEVA shares fell 3.2% to $31.00, reflecting a downward trend in the stock’s performance. Over the last 52 weeks, the stock has traded between $14.99 and $37.35, illustrating significant volatility.
- GF Value™ verdict: TEVA is currently priced at $31.00, which is 54.9% overvalued compared to the GF Value™ of $20.01.
- GF Score™: 54/100, indicating an average rating and potential concerns regarding long-term returns.
- Most notable signal: Insiders have sold $18.9 million in the last three months, with no buying activity reported.
Is TEVA Overvalued or Undervalued?
The current price of TEVA at $31.00 is significantly above its estimated fair value of $20.01, indicating that the stock is overvalued by approximately 54.9%. This valuation discrepancy raises concerns about the potential risk associated with holding the stock at its current price. The GF Valuation label indicates that the stock is significantly overvalued, suggesting that investors may face challenges should the market correct this valuation in the future.
The margin of safety is critical for investors when assessing whether to enter or exit a position. With TEVA’s stock trading well above its intrinsic value, there is limited margin for error, and the risk of a price correction could be significant. GF Value™ is GuruFocus’ proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does TEVA’s Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 23.3x | 24.9x |
| Forward P/E | 14.4x | N/A |
TEVA’s current P/E ratio of 23.3x is 6% below its 5-year median P/E of 24.9x, indicating that the stock is trading slightly below its historical valuation levels. However, this analysis aligns with the GF Value™ verdict, confirming that the stock is overvalued and may not provide an attractive entry point for potential investors.
What Does TEVA’s GF Score™ Tell Us?
| Metric | Rating |
|---|---|
| GF Score™ | 54 |
| Financial Strength | 4/10 |
| Profitability | 5/10 |
| Growth | 0/10 |
| Valuation | 3/10 |
| Momentum | 6/10 |
TEVA’s GF Score™ of 54/100 suggests an average investment profile. The weakest aspects of the company are its Growth Rank of 0/10 and Valuation Rank of 3/10, indicating significant challenges in both growth prospects and valuation metrics. In contrast, the Momentum Rank of 6/10 suggests that there has been some positive price movement, although it may not be enough to offset the concerns raised by the other metrics.
What Are Insiders Doing with TEVA Stock?
In the last three months, insiders have sold a substantial amount of TEVA stock, totaling $18.9 million, with no reported buying activity. This pattern of selling may indicate a lack of confidence among insiders regarding the company’s future prospects or current valuation. Typically, insider selling can be viewed as a bearish signal, which adds to the caution investors should exhibit when considering the stock.
What This Means for Investors
Based on the GF Value™ assessment, Teva Pharmaceutical Industries Ltd TEVA is currently overvalued. The significant disparity between the current share price and the estimated fair value suggests that investors should exercise caution before considering an investment in TEVA at this time.
For the complete analysis, visit the Teva Pharmaceutical Industries Ltd TEVA stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is TEVA’s GF Score™?
TEVA’s GF Score™ is 54/100, indicating an average rating that suggests potential concerns regarding long-term returns based on various metrics.
Is TEVA overvalued or undervalued?
TEVA is overvalued according to GF Value™, with its current price significantly above its estimated fair value, indicating a potential risk for investors.
What is TEVA’s P/E ratio?
TEVA’s P/E ratio (TTM) is 23.3x, which is slightly below its 5-year median P/E of 24.9x, aligning with the assessment of being overvalued.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].