NVS

Novartis AG

Fundamental data last updated:May 13, 2026

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

company profile

SECTOR

Healthcare

industry

Drug Manufacturers - General

Exchange

NYSE

County of HQ

CH

Next Earnings Date

07/21/2026

Business Summary

Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company operates through two segments, Innovative Medicines and Sandoz. The Innovative Medicines segment offers prescription medicines for patients and healthcare providers. It also provides ophthalmology, neuroscience, immunology, hepatology, dermatology, respiratory, cardiovascular, renal, and metabolism medicine products. The Sandoz segment develops, manufactures, and markets finished dosage form medicines; active ingredients and finished dosage forms of small molecule pharmaceuticals to third parties; and retail generics and anti-infectives. It also provides active pharmaceutical ingredients and intermediates primarily antibiotics; protein- or other biotechnology-based products, including biosimilars; and biotechnology manufacturing services. Novartis AG has a license and collaboration agreement with Alnylam Pharmaceuticals to develop, manufacture, and commercialize inclisiran; and a clinical collaboration with Kura Oncology, Inc. to evaluate the combination of Tipifarnib and Alpelisib in patients with head and neck squamous cell carcinoma. The company was incorporated in 1996 and is headquartered in Basel, Switzerland.

 


VALUATION

P/E

20.56

Market Cap ($M USD)

$277.11B

Forward P/E

11.54

PEG

0.15

PRICE TO SALES

5.04

PRICE TO BOOK

7.24

EV / EBITDA

14.63

5-Year Average P/E

Free Cash Flow Yield

5.95%

DCF Value

$288.76

Graham Number

$56.71

Price to FCF

16.81

EV to FCF

19.23

Earnings Yield

4.82%

FCF Yield

5.95%

DIVIDEND

Yield

3.24%

Annual Payout

$4.74

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

$12.59

Next Year Revenue Growth Estimate

$6.98T

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

3.43

Return on Invested Capital (ROIC)

18.96%

Current Ratio

0.85

Quick Ratio

0.65

Net Debt to EBITDA

1.84

Interest Coverage

13.57

Gross Profit margin

75.13%

FCF PER SHARE

$8.71

REVENUE PER SHARE

$29.05

Gainseekers Quantitative Analysis

Summary

Novartis AG’s valuation presents a compelling narrative of mispricing. With a DCF value nearly double the snapshot price, the market seems to undervalue its intrinsic worth. The Forward P/E of 11.60 suggests a growth story not yet fully appreciated, while the robust Altman Z-score of 3.44 indicates financial stability. The earnings yield, although modest, aligns with a company poised for future expansion. This stock offers a blend of safety and growth potential that is rare in today’s market.

AI Exposure / Tech Reliance

As a leader in the healthcare sector, Novartis is well-positioned to leverage AI for drug discovery and personalized medicine. The industry's inherent demand for innovation aligns seamlessly with technological advancements. This positions Novartis to remain resilient amidst tech-driven shifts.

The Bull Case

For the discerning value investor, Novartis shines with its impressive ROIC of 18.96%, signaling efficient capital use. The FCF yield, while modest, complements a strong operating margin of 29.88%, underscoring pricing power. A Piotroski F-Score of 6 suggests solid financial health, making it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, Novartis faces challenges with its high Price/Book ratio of 7.22, indicating potential overvaluation. The quick ratio of 0.65 raises liquidity concerns, suggesting potential short-term financial strain. Additionally, trading close to its 52-week high, the stock may be technically overextended, warranting caution for new entrants.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$141.00

Institutional Ownership %

1-Year Beta

0.49

Insider Buying % (6 Mo)

Distance to 52-Week High

17.37%

Distance to 52-Week Low

27.75%

EARNINGS SURPRISE %

-5.69%

50-DAY SMA

$151.74

200-DAY SMA

$138.43

⚠️ 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.