NVS

Novartis AG

Fundamental data last updated:August 20, 2026

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company profile

SECTOR

Healthcare

industry

Drug Manufacturers - General

Exchange

NYSE

County of HQ

CH

Next Earnings Date

Pending Announcement

Business Summary

Novartis AG is a holding company, which engages in the business of developing, manufacturing, and marketing healthcare products. Its product portfolio is heavily focused on innovative prescription medicines, especially oncology, immunology, neuroscience, and cardiovascular diseases, supplemented by established older brands and a wide range of specialized therapies. The company was founded on February 29, 1996 and is headquartered in Basel, Switzerland.

 


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VALUATION

P/E

22.01

Market Cap ($M USD)

$296.69B

Forward P/E

12.03

PEG

0.14

PRICE TO SALES

5.38

PRICE TO BOOK

7.73

EV / EBITDA

15.19

5-Year Average P/E

Free Cash Flow Yield

5.57%

DCF Value

$275.15

Graham Number

$56.71

Price to FCF

17.95

EV to FCF

20.37

Earnings Yield

4.52%

FCF Yield

5.57%

DIVIDEND

Yield

2.93%

Annual Payout

$4.59

Payout Ratio

61.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$7.06

Next Year EPS Growth Estimate

$12.93

Next Year Revenue Growth Estimate

$70.55B

Return on Equity (ROE)

31.54%

FREE CASH FLOW

Operating Margin

29.88%

Debt-to-Equity

0.80

Piotroski F-Score

6

Altman Z-Score

3.64

Return on Invested Capital (ROIC)

18.96%

Current Ratio

0.85

Quick Ratio

0.65

Net Debt to EBITDA

1.81

Interest Coverage

13.57

Gross Profit margin

75.13%

FCF PER SHARE

$8.71

REVENUE PER SHARE

$29.05

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Gainseekers Quantitative Analysis

Summary

The market seems to be undervaluing Novartis AG, with its stock trading significantly below its DCF value. The Forward P/E of 12.11 suggests a more attractive valuation compared to its current P/E, indicating potential growth. Meanwhile, the Altman Z-score of 3.60 reflects solid financial health, reducing bankruptcy risk. However, the earnings yield of 4.51% might not be enticing enough for income-focused investors. Overall, the stock appears to be a compelling opportunity for those seeking undervalued growth.

AI Exposure / Tech Reliance

In the rapidly evolving healthcare sector, Novartis is well-positioned to leverage AI and technological advancements. As a major player in drug manufacturing, the company can integrate AI for drug discovery and personalized medicine. This adaptability ensures resilience against tech-driven disruptions.

The Bull Case

For value and GARP investors, Novartis presents a strong case with its impressive ROIC of 18.96%, indicating efficient capital allocation. The FCF yield of 5.57% and a Piotroski F-Score of 6 suggest robust financial health and operational efficiency. With an operating margin of 29.88%, the company demonstrates significant pricing power, making it an attractive investment for those seeking long-term value.

The Bear Case

Despite its strengths, Novartis faces challenges with its high Price/Book ratio of 7.74, suggesting potential overvaluation. The stock is also technically overextended, trading close to its 52-week high. Additionally, a current ratio of 0.85 raises concerns about short-term liquidity. These factors could deter risk-averse investors wary of paying a premium for growth.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$170.00

Institutional Ownership %

1-Year Beta

0.50

Insider Buying % (6 Mo)

Distance to 52-Week High

9.63%

Distance to 52-Week Low

27.75%

EARNINGS SURPRISE %

-5.69%

50-DAY SMA

$149.59

200-DAY SMA

$143.65

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.