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 13.29 is considered Undervalued compared with the five-year average of 27.93. The fair price of Novo Nordisk A/S (NVO) is between 87.09 to 126.71 according to relative valuation methord. Compared to the current price of 48.46 USD , Novo Nordisk A/S is Undervalued By 44.35%.
Relative Value
Fair Zone
87.09-126.71
Current Price：48.46
44.35%
Undervalued
12.52
PE
1Y
3Y
5Y
Trailing
Forward
9.55
EV/EBITDA
Novo Nordisk A/S. (NVO) has a current EV/EBITDA of 9.55. The 5-year average EV/EBITDA is 20.02. The thresholds are as follows: Strongly Undervalued below 10.99, Undervalued between 10.99 and 15.51, Fairly Valued between 24.54 and 15.51, Overvalued between 24.54 and 29.06, and Strongly Overvalued above 29.06. The current Forward EV/EBITDA of 9.55 falls within the Strongly Undervalued range.
10.87
EV/EBIT
Novo Nordisk A/S. (NVO) has a current EV/EBIT of 10.87. The 5-year average EV/EBIT is 21.99. The thresholds are as follows: Strongly Undervalued below 12.23, Undervalued between 12.23 and 17.11, Fairly Valued between 26.87 and 17.11, Overvalued between 26.87 and 31.75, and Strongly Overvalued above 31.75. The current Forward EV/EBIT of 10.87 falls within the Strongly Undervalued range.
309.65
PS
Novo Nordisk A/S. (NVO) has a current PS of 309.65. The 5-year average PS is 12.85. The thresholds are as follows: Strongly Undervalued below -49.15, Undervalued between -49.15 and -18.15, Fairly Valued between 43.86 and -18.15, Overvalued between 43.86 and 74.86, and Strongly Overvalued above 74.86. The current Forward PS of 309.65 falls within the Strongly Overvalued range.
11.69
P/OCF
Novo Nordisk A/S. (NVO) has a current P/OCF of 11.69. The 5-year average P/OCF is 23.87. The thresholds are as follows: Strongly Undervalued below 13.22, Undervalued between 13.22 and 18.55, Fairly Valued between 29.20 and 18.55, Overvalued between 29.20 and 34.53, and Strongly Overvalued above 34.53. The current Forward P/OCF of 11.69 falls within the Strongly Undervalued range.
22.16
P/FCF
Novo Nordisk A/S. (NVO) has a current P/FCF of 22.16. The 5-year average P/FCF is 33.97. The thresholds are as follows: Strongly Undervalued below 16.10, Undervalued between 16.10 and 25.03, Fairly Valued between 42.90 and 25.03, Overvalued between 42.90 and 51.84, and Strongly Overvalued above 51.84. The current Forward P/FCF of 22.16 falls within the Undervalued range.
Novo Nordisk A/S (NVO) has a current Price-to-Book (P/B) ratio of 8.11. Compared to its 3-year average P/B ratio of 27.01 , the current P/B ratio is approximately -69.97% higher. Relative to its 5-year average P/B ratio of 24.87, the current P/B ratio is about -67.39% higher. Novo Nordisk A/S (NVO) has a Forward Free Cash Flow (FCF) yield of approximately 4.77%. Compared to its 3-year average FCF yield of 2.81%, the current FCF yield is approximately 70.10% lower. Relative to its 5-year average FCF yield of 3.17% , the current FCF yield is about 50.61% lower.
8.10
P/B
Median3y
27.01
Median5y
24.87
4.75
FCF Yield
Median3y
2.81
Median5y
3.17
Competitors Valuation Multiple
The average P/S ratio for NVO's competitors is 564.74, providing a benchmark for relative valuation. Novo Nordisk A/S Corp (NVO) exhibits a P/S ratio of 309.65, which is -45.17% above the industry average. Given its robust revenue growth of 11.81%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of NVO decreased by 54.63% 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 Margin Expansion, contributed -30.30%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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FAQ
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