Organon Valuation

OGN Stock  USD 8.10  0.19  2.29%   
At this time, the company appears to be undervalued. Organon holds a recent Real Value of $9.65 per share. The prevailing price of the company is $8.1. Our model determines the value of Organon from analyzing the company fundamentals such as Return On Equity of 0.72, operating margin of 0.23 %, and Shares Outstanding of 259.98 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Organon's valuation include:
Price Book
2.2957
Enterprise Value
10.3 B
Enterprise Value Ebitda
6.5657
Price Sales
0.3421
Forward PE
5.0302
Undervalued
Today
8.10
Please note that Organon's price fluctuation is somewhat reliable at this time. Calculation of the real value of Organon is based on 3 months time horizon. Increasing Organon's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Organon is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Organon Stock. However, Organon's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  8.1 Real  9.65 Target  9.36 Hype  8.1 Naive  7.0
The intrinsic value of Organon's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Organon's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
9.65
Real Value
12.92
Upside
Estimating the potential upside or downside of Organon Co helps investors to forecast how Organon stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Organon more accurately as focusing exclusively on Organon's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.890.961.00
Details
Hype
Prediction
LowEstimatedHigh
4.838.1011.37
Details
Potential
Annual Dividend
LowForecastedHigh
0.390.490.58
Details
7 Analysts
Consensus
LowTarget PriceHigh
8.519.3610.39
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Organon's intrinsic value based on its ongoing forecasts of Organon's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Organon's closest peers.

Organon Cash

532.09 Million

Organon Total Value Analysis

Organon Co is now forecasted to have company total value of 10.29 B with market capitalization of 2.16 B, debt of 9.04 B, and cash on hands of 675 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Organon fundamentals before making security assessment based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
10.29 B
2.16 B
9.04 B
675 M

Organon Investor Information

About 77.0% of the company shares are owned by institutional investors. The book value of Organon was now reported as 3.49. The company last dividend was issued on the 20th of November 2025. Based on the analysis of Organon's profitability, liquidity, and operating efficiency, Organon Co is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in March.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.350.27
Significantly Up
Pretty Stable
Total Cash From Operating Activities802.8 M845.1 M
Notably Down
Slightly volatile
Operating Income1.9 B1.3 B
Significantly Up
Slightly volatile

Organon Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Organon has an asset utilization ratio of 48.87 percent. This suggests that the Company is making $0.49 for each dollar of assets. An increasing asset utilization means that Organon Co is more efficient with each dollar of assets it utilizes for everyday operations.
 
Covid
 
Interest Hikes

Organon Profitability Analysis

Considering Organon's profitability and operating efficiency indicators, Organon Co is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in March. Profitability indicators assess Organon's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2020-03-31
Previous Quarter
145 M
Current Value
160 M
Quarterly Volatility
172.8 M
 
Covid
 
Interest Hikes
At this time, Organon's Gross Profit is very stable compared to the past year. As of the 6th of February 2026, Pretax Profit Margin is likely to grow to 0.14, while Gross Profit Margin is likely to drop 0.49.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.490.52
Notably Down
Very volatile
Net Profit Margin0.240.16
Way Up
Pretty Stable
Operating Profit Margin0.350.27
Significantly Up
Pretty Stable
Pretax Profit Margin0.140.126
Significantly Up
Slightly volatile
Return On Assets0.0720.0758
Notably Down
Slightly volatile
For Organon profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Organon to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Organon utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Organon's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Organon over time as well as its relative position and ranking within its peers.

Organon Earnings per Share Projection vs Actual

By analyzing Organon's earnings estimates, investors can diagnose different trends across Organon's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Organon Co is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Covid
 
Interest Hikes
Organon is projected to generate 0.95915 in earnings per share on the 31st of December 2026. Organon earnings estimates show analyst consensus about projected Organon EPS (Earning Per Share). It derives the highest and the lowest estimates based on Organon's historical volatility. Many public companies, such as Organon, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Organon Ownership Allocation

Organon owns a total of 259.98 Million outstanding shares. The majority of Organon Co outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Organon to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Organon. Please pay attention to any change in the institutional holdings of Organon as this could imply that something significant has changed or is about to change at the company. Please note that on November 24, 2025, Senator Gary Peters of US Senate acquired under $15k worth of Organon's common stock.

Organon Profitability Analysis

The company reported the last year's revenue of 6.4 B. Total Income to common stockholders was 864 M with profit before taxes, overhead, and interest of 3.51 B.

Organon Past Distributions to stockholders

About Organon Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of Organon Co. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Organon based exclusively on its fundamental and basic technical indicators. By analyzing Organon's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Organon's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Organon. We calculate exposure to Organon's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Organon's related companies.
Last ReportedProjected for Next Year
Gross Profit3.3 B3.6 B
Pretax Profit Margin 0.13  0.14 
Operating Profit Margin 0.27  0.35 
Net Profit Margin 0.16  0.24 
Gross Profit Margin 0.52  0.49 
Organon's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Organon's value is low or high relative to the company's performance and growth projections. Determining the market value of Organon can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Organon represents a small ownership stake in the entity. As a stockholder of Organon, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Organon Dividends Analysis For Valuation

As of the 6th of February 2026, Dividends Paid is likely to drop to about 229.6 M. In addition to that, Dividend Yield is likely to drop to 0.04. At this time, Organon's Retained Earnings are very stable compared to the past year. As of the 6th of February 2026, Earnings Yield is likely to grow to 0.26, while Retained Earnings Total Equity is likely to drop (943.1 M).
Last ReportedProjected for Next Year
Dividends Paid341.6 M229.6 M
Dividend Yield 0.07  0.04 
Dividend Payout Ratio 0.31  0.21 
Dividend Paid And Capex Coverage Ratio 1.67  1.58 
There are various types of dividends Organon can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Organon shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Organon Co directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Organon pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Organon by the value of the dividends paid out.

Organon Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding259.2 M
Quarterly Earnings Growth Y O Y-0.558
Forward Price Earnings5.0302

Organon Current Valuation Indicators

Organon's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Organon's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Organon, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Organon's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Organon's worth.
When determining whether Organon offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Organon's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Organon Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Organon Co Stock:
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Organon Co. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.
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Will Pharmaceuticals sector continue expanding? Could Organon diversify its offerings? Factors like these will boost the valuation of Organon. Anticipated expansion of Organon directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Organon data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth
(0.56)
Dividend Share
0.6
Earnings Share
1.98
Revenue Per Share
24.34
Quarterly Revenue Growth
0.013
Investors evaluate Organon using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Organon's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Organon's market price to deviate significantly from intrinsic value.
It's important to distinguish between Organon's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Organon should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Organon's market price signifies the transaction level at which participants voluntarily complete trades.