Novo Nordisk Valuation

Q: 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.

NOVO B (DKK1005.6) is trading below our estimate of [[fair value]] (DKK1119.53)

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

Valuation Score

3/6

Valuation Score 3/6

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 (DKK1005.6) is trading below our estimate of fair value (DKK1119.53)

Significantly Below Fair Value: NOVO B is trading below fair value, but not by a significant amount.

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.

The above table shows the n/a ratio for NOVO B. This is calculated by dividing NOVO B's market cap by their current preferred multiple.
What is NOVO B's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	DKK 4.46t

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	18.3x
Enterprise Value/EBITDA	38x
PEG Ratio	3.5x

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	86.4x
HLUN B H. Lundbeck	16x	8.9%	DKK 37.5b
ALK B ALK-Abelló	61x	20.8%	DKK 33.9b
LLY Eli Lilly	132.8x	27.2%	US$818.5b
MRK Merck	136x	23.7%	US$328.8b
NOVO B Novo Nordisk	50x	14.2%	DKK 4.5t

Price-To-Earnings vs Peers: NOVO B is good value based on its Price-To-Earnings Ratio (50x) compared to the peer average (86.4x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	14.5%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	14.5%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: NOVO B is expensive based on its Price-To-Earnings Ratio (50x) compared to the European Pharmaceuticals industry average (25.7x).

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	50x
Fair PE Ratio	56x

Price-To-Earnings vs Fair Ratio: NOVO B is good value based on its Price-To-Earnings Ratio (50x) compared to the estimated Fair Price-To-Earnings Ratio (56x).

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 1,005.60	DKK 949.65 -5.6%	18.8%	DKK 1,200.00	DKK 530.00	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 785.08 -7.7%	24.1%	DKK 975.00	DKK 140.00	n/a	24
Feb ’25	DKK 786.40	DKK 737.84 -6.2%	24.7%	DKK 950.00	DKK 140.00	n/a	24
Jan ’25	DKK 698.10	DKK 689.43 -1.2%	27.4%	DKK 875.00	DKK 120.00	n/a	23
Dec ’24	DKK 698.70	DKK 680.04 -2.7%	27.2%	DKK 875.00	DKK 120.00	n/a	23
Nov ’24	DKK 687.70	DKK 683.48 -0.6%	21.1%	DKK 825.00	DKK 360.00	n/a	22
Oct ’24	DKK 643.90	DKK 648.75 +0.8%	19.7%	DKK 810.00	DKK 360.00	n/a	22
Sep ’24	DKK 650.60	DKK 618.30 -5.0%	18.1%	DKK 775.00	DKK 360.00	n/a	22
Aug ’24	DKK 550.10	DKK 583.13 +6.0%	15.8%	DKK 725.00	DKK 360.00	n/a	23
Jul ’24	DKK 549.70	DKK 579.06 +5.3%	16.2%	DKK 725.00	DKK 360.00	n/a	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
Oct ’23	DKK 380.70	DKK 418.04 +9.8%	16.5%	DKK 512.50	DKK 270.00	DKK 643.90	26
Sep ’23	DKK 386.65	DKK 414.19 +7.1%	16.3%	DKK 512.50	DKK 270.00	DKK 650.60	26
Aug ’23	DKK 423.55	DKK 413.73 -2.3%	16.9%	DKK 512.50	DKK 270.00	DKK 550.10	26
Jul ’23	DKK 392.30	DKK 406.50 +3.6%	16.3%	DKK 502.50	DKK 270.00	DKK 549.70	26
Jun ’23	DKK 384.70	DKK 397.94 +3.4%	17.5%	DKK 502.50	DKK 270.00	DKK 549.30	26

Analyst Forecast: Target price is lower than the current share price.