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 15.05 is considered Undervalued compared with the five-year average of 27.64. The fair price of Novo Nordisk A/S (NVO) is between 86.63 to 130.10 according to relative valuation methord. Compared to the current price of 56.57 USD , Novo Nordisk A/S is Undervalued By 34.7%.
Relative Value
Fair Zone
86.63-130.10
Current Price：56.57
34.7%
Undervalued
15.05
PE
1Y
3Y
5Y
10.35
EV/EBITDA
Novo Nordisk A/S. (NVO) has a current EV/EBITDA of 10.35. The 5-year average EV/EBITDA is 19.76. The thresholds are as follows: Strongly Undervalued below 10.13, Undervalued between 10.13 and 14.95, Fairly Valued between 24.58 and 14.95, Overvalued between 24.58 and 29.39, and Strongly Overvalued above 29.39. The current Forward EV/EBITDA of 10.35 falls within the Undervalued range.
12.06
EV/EBIT
Novo Nordisk A/S. (NVO) has a current EV/EBIT of 12.06. The 5-year average EV/EBIT is 21.73. The thresholds are as follows: Strongly Undervalued below 11.38, Undervalued between 11.38 and 16.55, Fairly Valued between 26.90 and 16.55, Overvalued between 26.90 and 32.07, and Strongly Overvalued above 32.07. The current Forward EV/EBIT of 12.06 falls within the Undervalued range.
4.79
PS
Novo Nordisk A/S. (NVO) has a current PS of 4.79. The 5-year average PS is 9.47. The thresholds are as follows: Strongly Undervalued below 4.60, Undervalued between 4.60 and 7.03, Fairly Valued between 11.91 and 7.03, Overvalued between 11.91 and 14.35, and Strongly Overvalued above 14.35. The current Forward PS of 4.79 falls within the Undervalued range.
12.67
P/OCF
Novo Nordisk A/S. (NVO) has a current P/OCF of 12.67. The 5-year average P/OCF is 23.55. The thresholds are as follows: Strongly Undervalued below 12.17, Undervalued between 12.17 and 17.86, Fairly Valued between 29.24 and 17.86, Overvalued between 29.24 and 34.93, and Strongly Overvalued above 34.93. The current Forward P/OCF of 12.67 falls within the Undervalued range.
23.57
P/FCF
Novo Nordisk A/S. (NVO) has a current P/FCF of 23.57. The 5-year average P/FCF is 33.80. The thresholds are as follows: Strongly Undervalued below 15.79, Undervalued between 15.79 and 24.79, Fairly Valued between 42.81 and 24.79, Overvalued between 42.81 and 51.81, and Strongly Overvalued above 51.81. The current Forward P/FCF of 23.57 falls within the Undervalued range.
Novo Nordisk A/S (NVO) has a current Price-to-Book (P/B) ratio of 8.73. Compared to its 3-year average P/B ratio of 26.07 , the current P/B ratio is approximately -66.50% higher. Relative to its 5-year average P/B ratio of 24.59, the current P/B ratio is about -64.48% higher. Novo Nordisk A/S (NVO) has a Forward Free Cash Flow (FCF) yield of approximately 4.50%. Compared to its 3-year average FCF yield of 2.91%, the current FCF yield is approximately 54.36% lower. Relative to its 5-year average FCF yield of 3.17% , the current FCF yield is about 41.75% lower.
8.73
P/B
Median3y
26.07
Median5y
24.59
4.50
FCF Yield
Median3y
2.91
Median5y
3.17
Competitors Valuation Multiple
The average P/S ratio for NVO's competitors is 7.02, providing a benchmark for relative valuation. Novo Nordisk A/S Corp (NVO) exhibits a P/S ratio of 4.79, which is -31.83% above the industry average. Given its robust revenue growth of 11.81%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of NVO decreased by 33.01% 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 -14.52%to the performance.
Overall, the performance of NVO in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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Frequently Asked Questions
Is Novo Nordisk A/S (NVO) currently overvalued or undervalued?
Novo Nordisk A/S (NVO) is now in the Undervalued zone, suggesting that its current forward PE ratio of 15.05 is considered Undervalued compared with the five-year average of 27.64. The fair price of Novo Nordisk A/S (NVO) is between 86.63 to 130.10 according to relative valuation methord. Compared to the current price of 56.57 USD , Novo Nordisk A/S is Undervalued By 34.70% .
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 86.63 to 130.10 according to relative valuation methord.
How does NVO's valuation metrics compare to the industry average?
The average P/S ratio for NVO's competitors is 7.02, providing a benchmark for relative valuation. Novo Nordisk A/S Corp (NVO) exhibits a P/S ratio of 4.79, which is -31.83% above the industry average. Given its robust revenue growth of 11.81%, this premium appears unsustainable.
What is the current P/B ratio for Novo Nordisk A/S (NVO) as of Jan 08 2026?
As of Jan 08 2026, Novo Nordisk A/S (NVO) has a P/B ratio of 8.73. This indicates that the market values NVO at 8.73 times its book value.
What is the current FCF Yield for Novo Nordisk A/S (NVO) as of Jan 08 2026?
As of Jan 08 2026, Novo Nordisk A/S (NVO) has a FCF Yield of 4.50%. This means that for every dollar of Novo Nordisk A/S’s market capitalization, the company generates 4.50 cents in free cash flow.
What is the current Forward P/E ratio for Novo Nordisk A/S (NVO) as of Jan 08 2026?
As of Jan 08 2026, Novo Nordisk A/S (NVO) has a Forward P/E ratio of 15.05. This means the market is willing to pay $15.05 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 Jan 08 2026?
As of Jan 08 2026, Novo Nordisk A/S (NVO) has a Forward P/S ratio of 4.79. This means the market is valuing NVO at $4.79 for every dollar of expected revenue over the next 12 months.