
14.78 USD (−3.7%)
14 analysts
What does it do?
Avantor is a global provider of products and services for the life sciences and biotechnology industry, offering everything from laboratory materials and reagents to custom production solutions for customers in the pharmaceutical, diagnostic, and research sectors.
Key points
from its scores- ✕Little or no dividend1.5
- ✕Weak growth2.3
- ✕Little competitive advantage3.5
AI analysis
bottom line, main risk, context and newsThe company needs to demonstrate an improvement in earnings generation and a reduction in its leverage before the current valuation becomes attractive.
Avantor presents a weak financial profile: its profit growth has collapsed by 37.4% and its return on equity is negative (-9.70%), while its net debt is 3.59 times its EBITDA, a level that in a rising rate environment adds pressure to its 7.16% operating margin. The valuation (forward P/E 17.50) does not compensate for these imbalances.
The main risk is the high financial leverage (Net Debt/EBITDA of 3.59) in a context of rising interest rates, which could strain cash generation and limit the ability to invest in a business with already tight margins.
Context and risks
Avantor operates in the life sciences and laboratory materials sector, with exposure to the global supply chain. Its high leverage (Net Debt/EBITDA of 3.59) and relatively low operating margin (7.16%) make it vulnerable to a rising interest rate environment, which increases the cost of servicing its debt. The regulatory risk in the US healthcare sector is moderate, with pricing pressure in some segments.
Is Avantor stock cheap or expensive?
at the analysis dateOn EV / EBITDA, it trades in line with the Healthcare median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| EV / EBITDA | 14.6 | 14.5 | +1% |
| Price / book | 1.8 | 4.1 | −55% |
| Price / sales | 1.6 | 3.4 | −54% |
Sector: median of the 217 Healthcare companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.0 out of 10 (median for Healthcare: 4.7).
Average analyst target: 14.78 USD, −3.7% versus the price.
Classic formulas with standard assumptions (5.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Healthcare medianValuation
- Forward P/E
- 17.5
- EV / EBITDA
- 14.6
- Price / book
- 1.8
- Price / sales
- 1.6
- Market cap
- 10.4B USD
- Enterprise value
- 13.8B USD
Profitability
- ROE
- −9.7%
- ROA
- 2.7%
- ROIC (approx.)
- 5.0%
- Gross margin
- 31.8%
- Operating margin
- 7.2%
- Net margin
- −8.8%
- Free cash flow
- 450.3M USD
- FCF yield
- 4.3%
- Cash conversion
- 48%
Solvency
- Total debt
- 3.7B USD
- Net debt
- 3.4B USD
- Cash
- 306.8M USD
- EBITDA
- 943.7M USD
- Net debt / EBITDA
- 3.59
- Debt / equity
- 65.68
- Current ratio
- 1.78
- Quick ratio
- 1.05
Growth
- Revenue growth
- +0.5%
- Earnings growth
- −37.4%
- EPS (TTM)
- −0.84 USD
- EPS (forward)
- 0.88 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.94
- Analyst consensus
- Hold (14)
- Target price
- 14.78 USD
- 52-week range
- 7.26 – 16.38
Recent news
All AVTR news →Compare it with its sector
All 217 in Healthcare →Frequently asked questions about Avantor
Is Avantor stock cheap or expensive?
On EV / EBITDA, it trades in line with the Healthcare median (within 15%). Valuation score: 5.0 out of 10 (median for Healthcare: 4.7). Average analyst target: 14.78 USD, −3.7% versus the price. This is not investment advice.
What score does Avantor get on MeridIAn Screener?
It scores 4.2 out of 10, rank 1,933 of 2,130 (better than 9% of the companies analysed). Its strongest category is Momentum (6.3) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
How much is Avantor worth on the stock market?
Its market capitalisation is 10.4B USD and its enterprise value, debt included, is 13.8B USD.
How much debt does Avantor have?
Its net debt (debt minus cash) is 3.4B USD. That is 3.59 times its EBITDA; the Healthcare median is 1.53.
Does Avantor pay a dividend?
It pays no dividend, or almost none.
How has Avantor stock performed over the last year?
It has risen 14.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 7.26 and 16.38 USD. Past performance does not guarantee future results.
What do analysts think of Avantor?
14 analysts cover it; their average recommendation is “Hold” and their average target is 14.78 USD (−3.7% versus the price). It is an estimate, not market data.
