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 Undervalued zone, suggesting that its current forward PS ratio of 4.68 is considered Undervalued compared with the five-year average of 12.82. The fair price of Novartis AG (NVS) is between +Inf to +Inf according to relative valuation methord. Compared to the current price of 133.72 USD , Novartis AG is Undervalued By Fair.
Relative Value
Fair Zone
+Inf-+Inf
Current Price：133.72
Fair
Undervalued
0.00
PE
1Y
3Y
5Y
Trailing
Forward
11.83
EV/EBITDA
Novartis AG. (NVS) has a current EV/EBITDA of 11.83. The 5-year average EV/EBITDA is 11.55. The thresholds are as follows: Strongly Undervalued below 9.90, Undervalued between 9.90 and 10.72, Fairly Valued between 12.37 and 10.72, Overvalued between 12.37 and 13.19, and Strongly Overvalued above 13.19. The current Forward EV/EBITDA of 11.83 falls within the Historic Trend Line -Fairly Valued range.
13.11
EV/EBIT
Novartis AG. (NVS) has a current EV/EBIT of 13.11. The 5-year average EV/EBIT is 12.36. The thresholds are as follows: Strongly Undervalued below 10.51, Undervalued between 10.51 and 11.44, Fairly Valued between 13.29 and 11.44, Overvalued between 13.29 and 14.22, and Strongly Overvalued above 14.22. The current Forward EV/EBIT of 13.11 falls within the Historic Trend Line -Fairly Valued range.
4.71
PS
Novartis AG. (NVS) has a current PS of 4.71. The 5-year average PS is 4.02. The thresholds are as follows: Strongly Undervalued below 3.30, Undervalued between 3.30 and 3.66, Fairly Valued between 4.38 and 3.66, Overvalued between 4.38 and 4.75, and Strongly Overvalued above 4.75. The current Forward PS of 4.71 falls within the Overvalued range.
13.92
P/OCF
Novartis AG. (NVS) has a current P/OCF of 13.92. The 5-year average P/OCF is 12.32. The thresholds are as follows: Strongly Undervalued below 10.46, Undervalued between 10.46 and 11.39, Fairly Valued between 13.25 and 11.39, Overvalued between 13.25 and 14.18, and Strongly Overvalued above 14.18. The current Forward P/OCF of 13.92 falls within the Overvalued range.
17.31
P/FCF
Novartis AG. (NVS) has a current P/FCF of 17.31. The 5-year average P/FCF is 14.24. The thresholds are as follows: Strongly Undervalued below 11.93, Undervalued between 11.93 and 13.09, Fairly Valued between 15.40 and 13.09, Overvalued between 15.40 and 16.56, and Strongly Overvalued above 16.56. The current Forward P/FCF of 17.31 falls within the Strongly Overvalued range.
Novartis AG (NVS) has a current Price-to-Book (P/B) ratio of 5.79. Compared to its 3-year average P/B ratio of 4.77 , the current P/B ratio is approximately 21.24% higher. Relative to its 5-year average P/B ratio of 4.19, the current P/B ratio is about 38.14% higher. Novartis AG (NVS) has a Forward Free Cash Flow (FCF) yield of approximately 7.68%. Compared to its 3-year average FCF yield of 7.03%, the current FCF yield is approximately 9.23% lower. Relative to its 5-year average FCF yield of 6.91% , the current FCF yield is about 11.24% lower.
5.73
P/B
Median3y
4.77
Median5y
4.19
7.64
FCF Yield
Median3y
7.03
Median5y
6.91
Competitors Valuation Multiple
The average P/S ratio for NVS's competitors is 4.66, providing a benchmark for relative valuation. Novartis AG Corp (NVS) exhibits a P/S ratio of 4.71, which is 1.08% above the industry average. Given its robust revenue growth of 9.00%, 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 NVS increased by 36.09% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.93 to 18.14.
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.
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FAQ
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