Novo Nordisk Valuation

Is NOVO B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NOVO B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NOVO B (DKK743.4) is trading below our estimate of fair value (DKK1146.42)

Significantly Below Fair Value: NOVO B is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NOVO B?

Key metric: As NOVO B is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NOVO B. This is calculated by dividing NOVO B's market cap by their current earnings.
What is NOVO B's PE Ratio?
PE Ratio	34.7x
Earnings	DKK 94.72b
Market Cap	DKK 3.29t

NOVO B key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	12.1x
Enterprise Value/EBITDA	25.7x
PEG Ratio	2.4x

Price to Earnings Ratio vs Peers

How does NOVO B's PE Ratio compare to its peers?

The above table shows the PE ratio for NOVO B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	42.9x
HLUN B H. Lundbeck	16.3x	8.6%	DKK 42.2b
ALK B ALK-Abelló	45.3x	21.5%	DKK 35.6b
LLY Eli Lilly	84.8x	29.2%	US$710.7b
JNJ Johnson & Johnson	25.3x	10.6%	US$372.0b
NOVO B Novo Nordisk	34.7x	14.4%	DKK 3.3t

Price-To-Earnings vs Peers: NOVO B is good value based on its Price-To-Earnings Ratio (34.7x) compared to the peer average (42.9x).

Price to Earnings Ratio vs Industry

How does NOVO B's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: NOVO B is expensive based on its Price-To-Earnings Ratio (34.7x) compared to the European Pharmaceuticals industry average (19.7x).

Price to Earnings Ratio vs Fair Ratio

What is NOVO B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NOVO B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	34.7x
Fair PE Ratio	46.4x

Price-To-Earnings vs Fair Ratio: NOVO B is good value based on its Price-To-Earnings Ratio (34.7x) compared to the estimated Fair Price-To-Earnings Ratio (46.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NOVO B forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	DKK 743.40	DKK 938.04 +26.2%	20.3%	DKK 1,150.00	DKK 560.00	n/a	24
Nov ’25	DKK 768.90	DKK 944.58 +22.8%	20.4%	DKK 1,150.00	DKK 560.00	n/a	24
Oct ’25	DKK 798.20	DKK 950.04 +19.0%	20.3%	DKK 1,150.00	DKK 560.00	n/a	25
Sep ’25	DKK 938.10	DKK 950.81 +1.4%	20.1%	DKK 1,200.00	DKK 560.00	n/a	26
Aug ’25	DKK 915.80	DKK 965.65 +5.4%	18.7%	DKK 1,200.00	DKK 560.00	n/a	26
Jul ’25	DKK 1,004.60	DKK 952.15 -5.2%	18.3%	DKK 1,200.00	DKK 560.00	n/a	26
Jun ’25	DKK 927.30	DKK 917.31 -1.1%	18.5%	DKK 1,120.00	DKK 530.00	n/a	26
May ’25	DKK 897.70	DKK 904.20 +0.7%	19.4%	DKK 1,120.00	DKK 530.00	n/a	25
Apr ’25	DKK 881.30	DKK 894.24 +1.5%	19.6%	DKK 1,120.00	DKK 530.00	n/a	25
Mar ’25	DKK 850.90	DKK 820.08 -3.6%	16.8%	DKK 980.00	DKK 530.00	n/a	24
Feb ’25	DKK 786.40	DKK 770.90 -2.0%	18.5%	DKK 980.00	DKK 450.00	n/a	23
Jan ’25	DKK 698.10	DKK 720.74 +3.2%	20.4%	DKK 875.00	DKK 360.00	n/a	23
Dec ’24	DKK 698.70	DKK 711.35 +1.8%	20.2%	DKK 875.00	DKK 360.00	n/a	23
Nov ’24	DKK 687.70	DKK 683.48 -0.6%	21.1%	DKK 825.00	DKK 360.00	DKK 768.90	22
Oct ’24	DKK 643.90	DKK 648.75 +0.8%	19.7%	DKK 810.00	DKK 360.00	DKK 798.20	22
Sep ’24	DKK 650.60	DKK 618.30 -5.0%	18.1%	DKK 775.00	DKK 360.00	DKK 938.10	22
Aug ’24	DKK 550.10	DKK 583.13 +6.0%	15.8%	DKK 725.00	DKK 360.00	DKK 915.80	23
Jul ’24	DKK 549.70	DKK 579.06 +5.3%	16.2%	DKK 725.00	DKK 360.00	DKK 1,004.60	22
Jun ’24	DKK 549.30	DKK 574.51 +4.6%	16.8%	DKK 725.00	DKK 360.00	DKK 927.30	22
May ’24	DKK 565.40	DKK 559.05 -1.1%	19.5%	DKK 725.00	DKK 340.00	DKK 897.70	22
Apr ’24	DKK 542.90	DKK 510.61 -5.9%	18.6%	DKK 620.00	DKK 340.00	DKK 881.30	22
Mar ’24	DKK 498.90	DKK 489.63 -1.9%	17.0%	DKK 610.00	DKK 340.00	DKK 850.90	23
Feb ’24	DKK 471.20	DKK 475.37 +0.9%	18.3%	DKK 600.00	DKK 270.00	DKK 786.40	23
Jan ’24	DKK 469.00	DKK 449.57 -4.1%	15.4%	DKK 542.50	DKK 270.00	DKK 698.10	23
Dec ’23	DKK 446.30	DKK 436.25 -2.3%	15.9%	DKK 542.50	DKK 270.00	DKK 698.70	24
Nov ’23	DKK 400.50	DKK 425.66 +6.3%	15.6%	DKK 535.00	DKK 270.00	DKK 687.70	25

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.