Novo Nordisk A/S

CPSE:NOVO B Stock Report

Market Cap: kr.3.9t

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 (DKK883.2) is trading below our estimate of fair value (DKK1113.1)

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?

Other financial metrics that can be useful for relative valuation.

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/Revenue16.2x
Enterprise Value/EBITDA33.5x
PEG Ratio3.3x

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average83.1x
ALK B ALK-Abelló
61.1x22.7%kr.33.9b
HLUN B H. Lundbeck
15x9.9%kr.33.3b
LLY Eli Lilly
113.2x27.4%US$697.8b
MRK Merck
143x24.9%US$328.1b
NOVO B Novo Nordisk
44.1x13.4%kr.3.9t

Price-To-Earnings vs Peers: NOVO B is good value based on its Price-To-Earnings Ratio (44.1x) compared to the peer average (83x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.9%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.9%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: NOVO B is expensive based on its Price-To-Earnings Ratio (44.1x) compared to the European Pharmaceuticals industry average (25.1x).

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 Ratio44.1x
Fair PE Ratio53.1x

Price-To-Earnings vs Fair Ratio: NOVO B is good value based on its Price-To-Earnings Ratio (44.1x) compared to the estimated Fair Price-To-Earnings Ratio (53.1x).

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.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentkr.883.20
kr.908.65
+2.9%
18.7%kr.1,120.00kr.530.00n/a26
May ’25kr.897.70
kr.904.20
+0.7%
19.4%kr.1,120.00kr.530.00n/a25
Apr ’25kr.881.30
kr.894.24
+1.5%
19.6%kr.1,120.00kr.530.00n/a25
Mar ’25kr.850.90
kr.785.08
-7.7%
24.1%kr.975.00kr.140.00n/a24
Feb ’25kr.786.40
kr.737.84
-6.2%
24.7%kr.950.00kr.140.00n/a24
Jan ’25kr.698.10
kr.689.43
-1.2%
27.4%kr.875.00kr.120.00n/a23
Dec ’24kr.698.70
kr.680.04
-2.7%
27.2%kr.875.00kr.120.00n/a23
Nov ’24kr.687.70
kr.683.48
-0.6%
21.1%kr.825.00kr.360.00n/a22
Oct ’24kr.643.90
kr.648.75
+0.8%
19.7%kr.810.00kr.360.00n/a22
Sep ’24kr.650.60
kr.618.30
-5.0%
18.1%kr.775.00kr.360.00n/a22
Aug ’24kr.550.10
kr.583.13
+6.0%
15.8%kr.725.00kr.360.00n/a23
Jul ’24kr.549.70
kr.579.06
+5.3%
16.2%kr.725.00kr.360.00n/a22
Jun ’24kr.549.30
kr.574.51
+4.6%
16.8%kr.725.00kr.360.00n/a22
May ’24kr.565.40
kr.559.05
-1.1%
19.5%kr.725.00kr.340.00kr.897.7022
Apr ’24kr.542.90
kr.510.61
-5.9%
18.6%kr.620.00kr.340.00kr.881.3022
Mar ’24kr.498.90
kr.489.63
-1.9%
17.0%kr.610.00kr.340.00kr.850.9023
Feb ’24kr.471.20
kr.475.37
+0.9%
18.3%kr.600.00kr.270.00kr.786.4023
Jan ’24kr.469.00
kr.449.57
-4.1%
15.4%kr.542.50kr.270.00kr.698.1023
Dec ’23kr.446.30
kr.436.25
-2.3%
15.9%kr.542.50kr.270.00kr.698.7024
Nov ’23kr.400.50
kr.425.66
+6.3%
15.6%kr.535.00kr.270.00kr.687.7025
Oct ’23kr.380.70
kr.418.04
+9.8%
16.5%kr.512.50kr.270.00kr.643.9026
Sep ’23kr.386.65
kr.414.19
+7.1%
16.3%kr.512.50kr.270.00kr.650.6026
Aug ’23kr.423.55
kr.413.73
-2.3%
16.9%kr.512.50kr.270.00kr.550.1026
Jul ’23kr.392.30
kr.406.50
+3.6%
16.3%kr.502.50kr.270.00kr.549.7026
Jun ’23kr.384.70
kr.397.94
+3.4%
17.5%kr.502.50kr.270.00kr.549.3026
May ’23kr.406.15
kr.382.96
-5.7%
17.3%kr.480.00kr.270.00kr.565.4024

Analyst Forecast: Target price is less than 20% higher than the current share price.

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