Novartis AG (NVS) is a publicly traded company in the Healthcare — Drug Manufacturers - General industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Novartis AG is a holding company, which engages in the business of developing, manufacturing, and marketing healthcare products. Its product portfolio is heavily focused on innovative prescription medicines, especially oncology, immunology, neuroscience, and cardiovascular diseases, supplemented by established older brands and a wide range of specialized therapies. The company was founded on February 29, 1996 and is headquartered in Basel, Switzerland.
Is Novartis AG stock overvalued or undervalued in 2026?
Novartis AG (NVS) trades at 23.5× earnings (P/E), below the median of the 246 healthcare companies over $2bn in Kaplio's universe. At the decade median (21.7×) $144 (-8 %); at its sector median (30.4×) $202 (+29 %).
Kaplio overview: Novartis AG
Market cap $297B · 52 weeks $122 – $169 (5 % below the high) · P/E 23.5× · 2027 expected P/E 15.9× · Dividend 2.9 % · 6 years rising · Next earnings February 3, 2027 · expected EPS $2.21 · Closing price, Oct 28 · accounts published Oct 27.
- Valuation: P/E 23.5× (fairly priced).
- Business: ROIC 13 % (fair).
- Balance sheet: Net debt/EBITDA 1.1× (solid).
- Earnings: 6 of 8 (on track).
What would it be worth at its usual multiples?
At the decade median (21.7×) $144 (-8 %); at its sector median (30.4×) $202 (+29 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in pharma: 6 of 7 pass
- P/E vs own 10y history 23.5×, fails.
- R&D / Revenue 19.6 %, passes.
- 5y EPS growth 15.4 %, passes.
- Gross margin 75.0 %, passes, near the threshold.
- FCF / Net Income 125.8 %, passes.
- ROIC 13.4 %, passes.
- Net debt / EBITDA 1.1×, passes.
Against its peers (reference peers) — Novartis AG: P/E 23.5×; EV/EBITDA 15.2×; ROIC 13.4 %; $297B. AstraZeneca PLC (P/E 25.4×; EV/EBITDA 14.3×; ROIC 12.7 %; $263B), Merck & Co., Inc. (P/E 113×; EV/EBITDA 28.3×; ROIC 5.6 %; $348B), Gilead Sciences, Inc. (P/E —; EV/EBITDA 165×; ROIC -3.7 %; $197B).
Expensive or cheap against its last ten years?
P/E at each close: today 23.5× · median 21.7× · minimum 13.1× · maximum 28.5× · cheap below 17.0× · expensive above 23.9×. It has been cheaper than today 77% of the time over its last ten years.
Dividend
solid · Yield 2.9 % ($4.05 per ADS in 2025) · Years raising it 6 · 5-year growth +6 % a year · Free cash flow coverage 1.9× · With $1,000 invested today you'd collect $28.90 a year ($2.41 a month).
Profitability
| Return on Equity | 29.64% |
| Return on Invested Capital | 13.38% |
| Return on Assets | 10.34% |
| Gross Margin | 74.29% |
| Operating Margin | 29.86% |
| Net Margin | 23.09% |
Financial Health
| Debt / Equity | 1.18 |
| Current Ratio | 0.86 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 3.86 |
Price Performance
| 1 month | +7.65% |
| 3 months | +0.45% |
| Year-to-date | +13.77% |
| 1 year | +28.78% |
| 3 years | +67.30% |
| 5 years | +100.31% |
| 10 years | +163.99% |
Dividend History
Paid in the last 12 months: $4.7402 per share in 1 payments.
| Date | Amount |
|---|---|
| 2026-03-11 | $4.7402 |
| 2025-03-12 | $3.9940 |
| 2024-03-07 | $3.1986 |
| 2023-03-09 | $3.4987 |
| 2022-03-08 | $3.3253 |
| 2021-03-04 | $3.1991 |
| 2020-03-03 | $3.0874 |
| 2019-03-04 | $2.5672 |
| 2018-03-06 | $2.6676 |
| 2017-03-01 | $2.4606 |
Amounts adjusted for stock splits.
Related companies: MRK · GILD · SNY · JNJ · ABBV · AZN · NVO · PFE
Explore sector: Healthcare · Drug Manufacturers - General
More sections of NVS: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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