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Time To Buy Teva Pharmaceutical (TEVA)

|Includes: Teva Pharmaceutical Industries Limited (TEVA)

Having reached its 52 week-low of $36.63 just before the end of 2012, TEVA has been added to my portfolio.

Here are the important metrics to consider:

Teva Pharmaceutical (NYSE:TEVA)

Price/Book

1.41

Cash/Share

1.52

P/E

15.30

Forward P/E

7.35

52-Week Range

36.63 - 45.51

TEVA's Fair Value

Using the discounted cash flow method (NYSE:DCF), TEVA's fair value is:

  1. $80.00 with a 10% growth rate, which would generate a return of 115%
  2. $115.00 with a 15% growth rate, which would generate a return of 209%

At its current price of $37.17, TEVA is a buy.

Disclosure: I am long TEVA.