See our latest analysis for Novo Nordisk.
Novo Nordisk’s recent share price pullback has interrupted what had been a relatively stable run, with the 1-month share price return down 17.1%. Despite some positive business momentum over the longer term, the 1-year total shareholder return is firmly negative, reflecting fading momentum and a shift in sentiment.
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After a sharp drop and with shares now trading at a significant discount to analyst price targets, some investors are questioning whether the market is overlooking Novo Nordisk’s potential or if future growth has already been fully priced into today’s share value.
Most Popular Narrative: 59% Undervalued
Novo Nordisk's last close at $49.46 is significantly below the fair value of $120.72 set by the most widely followed narrative. This creates a rare scenario where the company's forward momentum may be underestimated after its recent decline.
A sum-of-the-parts (SOTP) framework suggests that even when cash flows from Ozempic/Wegovy are conservatively discounted, the pipeline—including oral GLP-1, amycretin, and NASH candidates—is being valued at or near zero. These programs are effectively deep out-of-the-money real options: if even one delivers commercial success, the upside re-rating could be substantial.
Curious how Novo's next growth era could change everything? The fair value depends on bold assumptions for blockbuster drugs and overlooked, high-upside assets in the pipeline. Want to see the projections that support such a significant discount call? Explore the details that could change your perspective.
Result: Fair Value of $120.72 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, ongoing U.S. policy changes or another round of competitive setbacks could quickly challenge the case for a rebound in Novo Nordisk shares.
Find out about the key risks to this Novo Nordisk narrative.
Build Your Own Novo Nordisk Narrative
If you see Novo Nordisk's story differently or want to dig deeper on your own terms, you can shape your own narrative in just a few minutes with our tools. Do it your way.
A great starting point for your Novo Nordisk research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Discover if Novo Nordisk might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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