We’ve recently updated our valuation analysis.

Novo Nordisk Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

NVO 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/Revenue10.9x
Enterprise Value/EBITDA23.8x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

How does NVO's PE Ratio compare to its peers?

NVO PE Ratio vs Peers
The above table shows the PE ratio for NVO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.7x
MRK Merck
13.1x10.2%US$218.2b
LLY Eli Lilly
54x21.9%US$307.2b
PFE Pfizer
8.3x-16.2%US$245.6b
JNJ Johnson & Johnson
23.4x4.7%US$429.5b
NVO Novo Nordisk
34.1x13.5%US$1.7t

Price-To-Earnings vs Peers: NVO is expensive based on its Price-To-Earnings Ratio (34.1x) compared to the peer average (24.7x).


Price to Earnings Ratio vs Industry

How does NVO's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

Price-To-Earnings vs Industry: NVO is expensive based on its Price-To-Earnings Ratio (34.1x) compared to the US Pharmaceuticals industry average (12.4x)


Price to Earnings Ratio vs Fair Ratio

What is NVO'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.

NVO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.1x
Fair PE Ratio32.7x

Price-To-Earnings vs Fair Ratio: NVO is expensive based on its Price-To-Earnings Ratio (34.1x) compared to the estimated Fair Price-To-Earnings Ratio (32.7x).


Share Price vs Fair Value

What is the Fair Price of NVO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NVO ($99.63) is trading below our estimate of fair value ($152.44)

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


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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