NVO PE Ratio & Valuation,Is NVO Overvalued

NVO Relative Valuation

NVO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, NVO is overvalued; if below, it's undervalued.

Historical Valuation

Novo Nordisk A/S (NVO) is now in the Undervalued zone, suggesting that its current forward PE ratio of 14.36 is considered Undervalued compared with the five-year average of 27.67. The fair price of Novo Nordisk A/S (NVO) is between 78.85 to 117.66 according to relative valuation methord. Compared to the current price of 48.91 USD , Novo Nordisk A/S is Undervalued By 37.97%.

Relative Value

Fair Zone

78.85-117.66

Current Price：48.91

37.97%

Undervalued

12.53

10.03

EV/EBITDA

Novo Nordisk A/S. (NVO) has a current EV/EBITDA of 10.03. The 5-year average EV/EBITDA is 19.81. The thresholds are as follows: Strongly Undervalued below 10.34, Undervalued between 10.34 and 15.07, Fairly Valued between 24.55 and 15.07, Overvalued between 24.55 and 29.29, and Strongly Overvalued above 29.29. The current Forward EV/EBITDA of 10.03 falls within the Strongly Undervalued range.

11.54

EV/EBIT

Novo Nordisk A/S. (NVO) has a current EV/EBIT of 11.54. The 5-year average EV/EBIT is 21.77. The thresholds are as follows: Strongly Undervalued below 11.57, Undervalued between 11.57 and 16.67, Fairly Valued between 26.87 and 16.67, Overvalued between 26.87 and 31.97, and Strongly Overvalued above 31.97. The current Forward EV/EBIT of 11.54 falls within the Strongly Undervalued range.

4.41

Novo Nordisk A/S. (NVO) has a current PS of 4.41. The 5-year average PS is 9.49. The thresholds are as follows: Strongly Undervalued below 4.68, Undervalued between 4.68 and 7.09, Fairly Valued between 11.90 and 7.09, Overvalued between 11.90 and 14.31, and Strongly Overvalued above 14.31. The current Forward PS of 4.41 falls within the Strongly Undervalued range.

12.13

P/OCF

Novo Nordisk A/S. (NVO) has a current P/OCF of 12.13. The 5-year average P/OCF is 23.61. The thresholds are as follows: Strongly Undervalued below 12.41, Undervalued between 12.41 and 18.01, Fairly Valued between 29.21 and 18.01, Overvalued between 29.21 and 34.81, and Strongly Overvalued above 34.81. The current Forward P/OCF of 12.13 falls within the Strongly Undervalued range.

22.58

P/FCF

Novo Nordisk A/S. (NVO) has a current P/FCF of 22.58. The 5-year average P/FCF is 33.81. The thresholds are as follows: Strongly Undervalued below 15.82, Undervalued between 15.82 and 24.81, Fairly Valued between 42.80 and 24.81, Overvalued between 42.80 and 51.79, and Strongly Overvalued above 51.79. The current Forward P/FCF of 22.58 falls within the Undervalued range.

Novo Nordisk A/S (NVO) has a current Price-to-Book (P/B) ratio of 8.38. Compared to its 3-year average P/B ratio of 26.35 , the current P/B ratio is approximately -68.21% higher. Relative to its 5-year average P/B ratio of 24.65, the current P/B ratio is about -66.02% higher. Novo Nordisk A/S (NVO) has a Forward Free Cash Flow (FCF) yield of approximately 4.62%. Compared to its 3-year average FCF yield of 2.89%, the current FCF yield is approximately 60.13% lower. Relative to its 5-year average FCF yield of 3.18% , the current FCF yield is about 45.58% lower.

8.09

P/B

Median3y

26.35

Median5y

24.65

4.69

FCF Yield

Median3y

2.89

Median5y

3.18

Competitors Valuation Multiple

The average P/S ratio for NVO's competitors is 3.75, providing a benchmark for relative valuation. Novo Nordisk A/S Corp (NVO) exhibits a P/S ratio of 4.41, which is 17.76% above the industry average. Given its robust revenue growth of 11.81%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of NVO decreased by 43.08% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 10.50B to 11.74B.

The secondary factor is the P/E Change, contributed -24.59%to the performance.

Overall, the performance of NVO in the past 1 year is driven by Revenue Growth. Which is more sustainable.

11.81%

10.50B → 11.74B

Revenue Growth

-30.30%

38.28 → 26.68

Margin Expansion

-24.59%

17.58 → 13.26

P/E Change

-43.08%

86.02 → 48.96

Mkt Cap Growth

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Frequently Asked Questions

Is Novo Nordisk A/S (NVO) currently overvalued or undervalued?

What is Novo Nordisk A/S (NVO) fair value?

NVO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Novo Nordisk A/S (NVO) is between 78.85 to 117.66 according to relative valuation methord.

How does NVO's valuation metrics compare to the industry average?

What is the current P/B ratio for Novo Nordisk A/S (NVO) as of Dec 17 2025?

As of Dec 17 2025, Novo Nordisk A/S (NVO) has a P/B ratio of 8.38. This indicates that the market values NVO at 8.38 times its book value.

What is the current FCF Yield for Novo Nordisk A/S (NVO) as of Dec 17 2025?

As of Dec 17 2025, Novo Nordisk A/S (NVO) has a FCF Yield of 4.62%. This means that for every dollar of Novo Nordisk A/S’s market capitalization, the company generates 4.62 cents in free cash flow.

What is the current Forward P/E ratio for Novo Nordisk A/S (NVO) as of Dec 17 2025?

As of Dec 17 2025, Novo Nordisk A/S (NVO) has a Forward P/E ratio of 14.36. This means the market is willing to pay $14.36 for every dollar of Novo Nordisk A/S’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Novo Nordisk A/S (NVO) as of Dec 17 2025?

As of Dec 17 2025, Novo Nordisk A/S (NVO) has a Forward P/S ratio of 4.48. This means the market is valuing NVO at $4.48 for every dollar of expected revenue over the next 12 months.

NVO Valuation