Novartis AG

LSE:0K9E Stock Report

Market Cap: US$206.0b

Novartis Valuation

Is 0K9E undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 0K9E when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0K9E ($103.18) is trading below our estimate of fair value ($275.92)

Significantly Below Fair Value: 0K9E is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0K9E?

Key metric: As 0K9E is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0K9E. This is calculated by dividing 0K9E's market cap by their current earnings.
What is 0K9E's PE Ratio?
PE Ratio17.5x
EarningsUS$11.76b
Market CapUS$206.03b

Price to Earnings Ratio vs Peers

How does 0K9E's PE Ratio compare to its peers?

The above table shows the PE ratio for 0K9E vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.1x
AZN AstraZeneca
30.3x18.0%UK£155.4b
GSK GSK
21.2x21.9%UK£53.2b
HIK Hikma Pharmaceuticals
18.1x12.8%UK£4.1b
ROG Roche Holding
18.8x11.1%CHF 201.3b
0K9E Novartis
17.5x7.0%US$182.1b

Price-To-Earnings vs Peers: 0K9E is good value based on its Price-To-Earnings Ratio (17.5x) compared to the peer average (22.1x).

Price to Earnings Ratio vs Industry

How does 0K9E's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
0K9E 17.5xIndustry Avg. 20.8xNo. of Companies8PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0K9E is good value based on its Price-To-Earnings Ratio (17.5x) compared to the European Pharmaceuticals industry average (20.8x).

Price to Earnings Ratio vs Fair Ratio

What is 0K9E'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.

0K9E PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.5x
Fair PE Ratio33.8x

Price-To-Earnings vs Fair Ratio: 0K9E is good value based on its Price-To-Earnings Ratio (17.5x) compared to the estimated Fair Price-To-Earnings Ratio (33.8x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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