NVS PE Ratio & Valuation,Is NVS Overvalued

NVS Relative Valuation

NVS'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, NVS is overvalued; if below, it's undervalued.

Historical Valuation

Novartis AG (NVS) is now in the Fair zone, suggesting that its current forward PE ratio of 15.16 is considered Fairly compared with the five-year average of 13.01. The fair price of Novartis AG (NVS) is between 95.06 to 141.50 according to relative valuation methord.

Relative Value

Fair Zone

95.06-141.50

Current Price：134.47

Fair

15.40

11.75

EV/EBITDA

Novartis AG. (NVS) has a current EV/EBITDA of 11.75. The 5-year average EV/EBITDA is 11.54. The thresholds are as follows: Strongly Undervalued below 9.91, Undervalued between 9.91 and 10.73, Fairly Valued between 12.35 and 10.73, Overvalued between 12.35 and 13.16, and Strongly Overvalued above 13.16. The current Forward EV/EBITDA of 11.75 falls within the Historic Trend Line -Fairly Valued range.

13.02

EV/EBIT

Novartis AG. (NVS) has a current EV/EBIT of 13.02. The 5-year average EV/EBIT is 12.36. The thresholds are as follows: Strongly Undervalued below 10.52, Undervalued between 10.52 and 11.44, Fairly Valued between 13.28 and 11.44, Overvalued between 13.28 and 14.20, and Strongly Overvalued above 14.20. The current Forward EV/EBIT of 13.02 falls within the Historic Trend Line -Fairly Valued range.

4.66

Novartis AG. (NVS) has a current PS of 4.66. The 5-year average PS is 4.03. The thresholds are as follows: Strongly Undervalued below 3.30, Undervalued between 3.30 and 3.66, Fairly Valued between 4.39 and 3.66, Overvalued between 4.39 and 4.76, and Strongly Overvalued above 4.76. The current Forward PS of 4.66 falls within the Overvalued range.

13.62

P/OCF

Novartis AG. (NVS) has a current P/OCF of 13.62. The 5-year average P/OCF is 12.31. The thresholds are as follows: Strongly Undervalued below 10.46, Undervalued between 10.46 and 11.39, Fairly Valued between 13.24 and 11.39, Overvalued between 13.24 and 14.16, and Strongly Overvalued above 14.16. The current Forward P/OCF of 13.62 falls within the Overvalued range.

17.17

P/FCF

Novartis AG. (NVS) has a current P/FCF of 17.17. The 5-year average P/FCF is 14.26. The thresholds are as follows: Strongly Undervalued below 11.91, Undervalued between 11.91 and 13.08, Fairly Valued between 15.44 and 13.08, Overvalued between 15.44 and 16.61, and Strongly Overvalued above 16.61. The current Forward P/FCF of 17.17 falls within the Strongly Overvalued range.

Novartis AG (NVS) has a current Price-to-Book (P/B) ratio of 5.73. Compared to its 3-year average P/B ratio of 4.80 , the current P/B ratio is approximately 19.25% higher. Relative to its 5-year average P/B ratio of 4.20, the current P/B ratio is about 36.31% higher. Novartis AG (NVS) has a Forward Free Cash Flow (FCF) yield of approximately 7.70%. Compared to its 3-year average FCF yield of 7.04%, the current FCF yield is approximately 9.30% lower. Relative to its 5-year average FCF yield of 6.92% , the current FCF yield is about 11.31% lower.

5.82

P/B

Median3y

4.80

Median5y

4.20

7.70

FCF Yield

Median3y

7.04

Median5y

6.92

Competitors Valuation Multiple

The average P/S ratio for NVS's competitors is 5.70, providing a benchmark for relative valuation. Novartis AG Corp (NVS) exhibits a P/S ratio of 4.66, which is -18.28% above the industry average. Given its robust revenue growth of 9.00%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of NVS increased by 36.23% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 16.15 to 18.42.

The secondary factor is the Margin Expansion, contributed 13.19%to the performance.

Overall, the performance of NVS in the past 1 year is driven by P/E Change. Which is more unsustainable.

9.00%

13.17B → 14.36B

Revenue Growth

13.19%

24.18 → 27.37

Margin Expansion

14.04%

16.15 → 18.42

P/E Change

36.23%

97.31 → 132.57

Mkt Cap Growth

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Frequently Asked Questions

Is Novartis AG (NVS) currently overvalued or undervalued?

What is Novartis AG (NVS) fair value?

NVS'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 Novartis AG (NVS) is between 95.06 to 141.50 according to relative valuation methord.

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

What is the current P/B ratio for Novartis AG (NVS) as of Dec 15 2025?

As of Dec 15 2025, Novartis AG (NVS) has a P/B ratio of 5.73. This indicates that the market values NVS at 5.73 times its book value.

What is the current FCF Yield for Novartis AG (NVS) as of Dec 15 2025?

As of Dec 15 2025, Novartis AG (NVS) has a FCF Yield of 7.70%. This means that for every dollar of Novartis AG’s market capitalization, the company generates 7.70 cents in free cash flow.

What is the current Forward P/E ratio for Novartis AG (NVS) as of Dec 15 2025?

As of Dec 15 2025, Novartis AG (NVS) has a Forward P/E ratio of 15.16. This means the market is willing to pay $15.16 for every dollar of Novartis AG’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Novartis AG (NVS) as of Dec 15 2025?

As of Dec 15 2025, Novartis AG (NVS) has a Forward P/S ratio of 4.66. This means the market is valuing NVS at $4.66 for every dollar of expected revenue over the next 12 months.

NVS Valuation