Novo Nordisk (NYSE:NVO): Reassessing Valuation After This Year’s Sharp Share Price Pullback

Novo Nordisk (NVO) shares have slipped over the past week and remain well below their highs this year, even though revenue and net income are still growing at mid single digit rates.

See our latest analysis for Novo Nordisk.

That recent pullback, including the 1 week share price return of minus 3.4 percent and a much steeper year to date share price return of minus 46.6 percent, shows momentum has clearly faded despite Novo Nordisk’s still growing earnings base and longer term total shareholder return remaining positive over five years.

If this volatility has you reassessing your healthcare exposure, it could be worth exploring other ideas across healthcare stocks. This can help you see how peers stack up on growth, valuation, and risk.

With shares down sharply this year despite solid mid single digit earnings growth and a sizable discount to analyst targets, is Novo Nordisk now trading below its true value, or is the market already pricing in its next phase of expansion?

Most Popular Narrative: 61.3% Undervalued

According to bactrian, the latest narrative implies a fair value more than double Novo Nordisk’s last close of $46.77, framing the recent selloff as an opportunity rather than a verdict.

Novo now trades at just 12× forward earnings, down from >30× a year ago. With clean financials, durable IP through 2032, and a clear innovation roadmap, the risk/reward profile has reset attractively.

Read the complete narrative.

Want to know how a mature pharma name ends up with a tech style upside narrative? The engine is disciplined growth, powerful margins, and a punchy profit multiple that assumes years of compounding ahead. Curious which long run earnings and revenue paths have to play out to justify that gap to fair value? Dive in to see the full blueprint behind this bold price target.

Result: Fair Value of $120.72 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upside case still hinges on semaglutide dominance and supportive policy, with tougher GLP 1 competition or aggressive US drug pricing potentially undermining it.

Find out about the key risks to this Novo Nordisk narrative.

Build Your Own Novo Nordisk Narrative

If you see the story differently or want to test your own assumptions against the numbers, you can build a full narrative in just a few minutes: 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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