NVO

Novo Nordisk A/S

Fundamental data last updated:May 15, 2026

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company profile

SECTOR

Healthcare

industry

Drug Manufacturers - General

Exchange

NYSE

County of HQ

DK

Next Earnings Date

08/05/2026

Business Summary

Novo Nordisk A/S, together with its subsidiaries, engages in the research and development, manufacture, and distribution of pharmaceutical products in Europe, the Middle East, Africa, Mainland China, Hong Kong, Taiwan, North America, and internationally. It operates in two segments, Diabetes and Obesity Care, and Rare Disease. The Diabetes and Obesity care segment provides products for diabetes, obesity, cardiovascular, and other emerging therapy areas. The Rare Disease segment offers products in the areas of rare blood disorders, rare endocrine disorders, and hormone replacement therapy. The company also provides insulin pens, growth hormone pens, and injection needles. In addition, it offers smart solutions for diabetes treatment, such as smart insulin pens and Dose Check, an insulin dose guidance application. The company has a collaboration agreement with UNICEF to tackle childhood obesity; and with Valo Health, Inc. to discover and develop novel drug programmes for cardiometabolic space. Novo Nordisk A/S was founded in 1923 and is headquartered in Bagsvaerd, Denmark.

 


VALUATION

P/E

1.68

Market Cap ($M USD)

$205.10B

Forward P/E

1.56

PEG

0.21

PRICE TO SALES

4.05

PRICE TO BOOK

6.55

EV / EBITDA

7.91

5-Year Average P/E

Free Cash Flow Yield

2.33%

DCF Value

$98.06

Graham Number

$168.03

Price to FCF

42.84

EV to FCF

46.87

Earnings Yield

9.18%

FCF Yield

2.33%

DIVIDEND

Yield

3.91%

Annual Payout

$11.70

Payout Ratio

42.47%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$27.45

Next Year EPS Growth Estimate

$29.50

Next Year Revenue Growth Estimate

$38.77T

Return on Equity (ROE)

66.36%

FREE CASH FLOW

Operating Margin

45.30%

Debt-to-Equity

0.67

Piotroski F-Score

5

Altman Z-Score

4.19

Return on Invested Capital (ROIC)

44.45%

Current Ratio

0.79

Quick Ratio

0.56

Net Debt to EBITDA

0.68

Interest Coverage

29.15

Gross Profit margin

81.85%

FCF PER SHARE

$6.98

REVENUE PER SHARE

$73.79

Gainseekers Quantitative Analysis

Summary

Novo Nordisk’s valuation presents a compelling case of market mispricing. The stock traded significantly below its DCF value, suggesting a potential undervaluation. With a Forward P/E ratio that indicates attractive growth prospects, and an Altman Z-score signaling financial stability, the market seems to underestimate its intrinsic worth. The Earnings Yield further supports this narrative, highlighting a robust earnings generation capability. Overall, the financial health appears strong, with metrics pointing towards both safety and growth potential.

AI Exposure / Tech Reliance

Operating in the healthcare sector, Novo Nordisk is well-positioned to leverage AI and modern technology advancements. The drug manufacturing industry is increasingly integrating AI for drug discovery and personalized medicine, areas where Novo Nordisk can capitalize on its expertise. This adaptability ensures resilience in a rapidly evolving tech landscape.

The Bull Case

For value or GARP investors, Novo Nordisk offers a tantalizing opportunity. The company's ROIC of 44.45% underscores exceptional capital efficiency, while a solid FCF Yield indicates robust cash generation. With a Piotroski F-Score of 5, the company demonstrates sound financial health, and its impressive operating margin of 45.30% reflects strong pricing power. These metrics collectively paint a picture of a company with formidable execution and strategic prowess.

The Bear Case

Despite its strengths, Novo Nordisk faces structural risks. The Price/Book and Price/Sales ratios are elevated, suggesting potential overvaluation concerns. Additionally, the stock's proximity to its 52-week high raises questions about technical overextension. The low Current and Quick Ratios highlight liquidity challenges, which could pose risks if market conditions shift unfavorably.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$47.00

Institutional Ownership %

1-Year Beta

0.35

Insider Buying % (6 Mo)

Distance to 52-Week High

76.45%

Distance to 52-Week Low

23.91%

EARNINGS SURPRISE %

19.54%

50-DAY SMA

$39.72

200-DAY SMA

$49.20

⚠️ 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.