NVO Valuation

Novo Nordisk A/S

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51.080

+2.32(4.758%)1D

Overview
Forecast
Valuation
Earnings

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 11.96 is considered Undervalued compared with the five-year average of 28.38. The fair price of Novo Nordisk A/S (NVO) is between 101.68 to 141.76 according to relative valuation methord. Compared to the current price of 51.08 USD , Novo Nordisk A/S is Undervalued By 49.76%.

Relative Value

Fair Zone

101.68-141.76

Current Price：51.08

49.76%

Undervalued

11.96

Trailing

Forward

9.14

EV/EBITDA

Novo Nordisk A/S. (NVO) has a current EV/EBITDA of 9.14. The 5-year average EV/EBITDA is 20.24. The thresholds are as follows: Strongly Undervalued below 12.06, Undervalued between 12.06 and 16.15, Fairly Valued between 24.33 and 16.15, Overvalued between 24.33 and 28.43, and Strongly Overvalued above 28.43. The current Forward EV/EBITDA of 9.14 falls within the Strongly Undervalued range.

10.18

EV/EBIT

Novo Nordisk A/S. (NVO) has a current EV/EBIT of 10.18. The 5-year average EV/EBIT is 22.23. The thresholds are as follows: Strongly Undervalued below 13.38, Undervalued between 13.38 and 17.81, Fairly Valued between 26.66 and 17.81, Overvalued between 26.66 and 31.08, and Strongly Overvalued above 31.08. The current Forward EV/EBIT of 10.18 falls within the Strongly Undervalued range.

4.25

Novo Nordisk A/S. (NVO) has a current PS of 4.25. The 5-year average PS is 9.70. The thresholds are as follows: Strongly Undervalued below 5.52, Undervalued between 5.52 and 7.61, Fairly Valued between 11.79 and 7.61, Overvalued between 11.79 and 13.88, and Strongly Overvalued above 13.88. The current Forward PS of 4.25 falls within the Strongly Undervalued range.

11.42

P/OCF

Novo Nordisk A/S. (NVO) has a current P/OCF of 11.42. The 5-year average P/OCF is 24.18. The thresholds are as follows: Strongly Undervalued below 14.58, Undervalued between 14.58 and 19.38, Fairly Valued between 28.98 and 19.38, Overvalued between 28.98 and 33.78, and Strongly Overvalued above 33.78. The current Forward P/OCF of 11.42 falls within the Strongly Undervalued range.

21.93

P/FCF

Novo Nordisk A/S. (NVO) has a current P/FCF of 21.93. The 5-year average P/FCF is 33.82. The thresholds are as follows: Strongly Undervalued below 15.81, Undervalued between 15.81 and 24.81, Fairly Valued between 42.82 and 24.81, Overvalued between 42.82 and 51.83, and Strongly Overvalued above 51.83. The current Forward P/FCF of 21.93 falls within the Undervalued range.

Novo Nordisk A/S (NVO) has a current Price-to-Book (P/B) ratio of 8.54. Compared to its 3-year average P/B ratio of 28.29 , the current P/B ratio is approximately -69.81% higher. Relative to its 5-year average P/B ratio of 25.25, the current P/B ratio is about -66.18% higher. Novo Nordisk A/S (NVO) has a Forward Free Cash Flow (FCF) yield of approximately 4.54%. Compared to its 3-year average FCF yield of 2.76%, the current FCF yield is approximately 64.89% lower. Relative to its 5-year average FCF yield of 3.23% , the current FCF yield is about 40.64% lower.

8.54

P/B

Median3y

28.29

Median5y

25.25

4.54

FCF Yield

Median3y

2.76

Median5y

3.23

Competitors Valuation Multiple

The average P/S ratio for NVO's competitors is 5.15, providing a benchmark for relative valuation. Novo Nordisk A/S Corp (NVO) exhibits a P/S ratio of 4.25, which is -17.47% above the industry average. Given its robust revenue growth of 18.85%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Dr Reddy's Laboratories Ltd

Performance Decomposition

Market capitalization of NVO decreased by 63.29% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 9.82B to 11.67B.

The secondary factor is the Margin Expansion, contributed 17.04%to the performance.

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

18.85%

9.82B → 11.67B

Revenue Growth

17.04%

29.46 → 34.48

Margin Expansion

-99.18%

1.58K → 12.95

P/E Change

-63.29%