Novartis Valuation
| NVS Stock | USD 104.28 0.43 0.41% |
At this time, the firm appears to be overvalued. Novartis AG ADR secures a last-minute Real Value of $97.57 per share. The latest price of the firm is $104.28. Our model forecasts the value of Novartis AG ADR from analyzing the firm fundamentals such as Current Valuation of 229.29 B, profit margin of 0.35 %, and Return On Equity of 0.29 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Novartis' valuation include:
Price Book 4.813 | Enterprise Value 229.3 B | Enterprise Value Ebitda 11.6337 | Price Sales 4.2281 | Forward PE 12.7389 |
Overvalued
Today
Please note that Novartis' price fluctuation is very steady at this time. Calculation of the real value of Novartis AG ADR is based on 3 months time horizon. Increasing Novartis' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Novartis stock is determined by what a typical buyer is willing to pay for full or partial control of Novartis AG ADR. Since Novartis is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Novartis Stock. However, Novartis' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 104.28 | Real 97.57 | Target 112.75 | Hype 104.16 | Naive 106.04 |
The intrinsic value of Novartis' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Novartis' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Novartis AG ADR helps investors to forecast how Novartis stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Novartis more accurately as focusing exclusively on Novartis' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Novartis' intrinsic value based on its ongoing forecasts of Novartis' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Novartis' closest peers.
Novartis Cash |
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Novartis Valuation Trend
Novartis' real value is important for investors to make better decisions and a more accurate overall view of Novartis' financial worth over time. Using both Novartis' enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Novartis Revenue by Product
Novartis Total Value Analysis
Novartis AG ADR is now anticipated to have company total value of 229.29 B with market capitalization of 211.15 B, debt of 26.35 B, and cash on hands of 4.64 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Novartis fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
229.29 B | 211.15 B | 26.35 B | 4.64 B |
Novartis Investor Information
The book value of the company was now reported as 21.67. The company recorded earning per share (EPS) of 5.72. Novartis AG ADR last dividend was issued on the 7th of March 2024. The entity had 1116:1000 split on the 9th of April 2019. Based on the key indicators related to Novartis' liquidity, profitability, solvency, and operating efficiency, Novartis AG ADR may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.18 | 0.2094 |
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| Total Cash From Operating Activities | 11.7 B | 14.5 B |
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| Operating Income | 9.9 B | 9.8 B |
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Novartis Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Novartis has an asset utilization ratio of 46.69 percent. This implies that the Company is making $0.47 for each dollar of assets. An increasing asset utilization means that Novartis AG ADR is more efficient with each dollar of assets it utilizes for everyday operations.Novartis Ownership Allocation
Novartis AG ADR maintains a total of 2 Billion outstanding shares. Roughly 93.25 % of Novartis outstanding shares are held by general public with 6.75 % by institutional investors. Please note that on May 19, 2024, Senator Sheldon Whitehouse of US Senate acquired under $15k worth of Novartis AG ADR's common stock.Novartis Profitability Analysis
The company reported the last year's revenue of 46.66 B. Total Income to common stockholders was 8.57 B with profit before taxes, overhead, and interest of 36.74 B.Novartis Past Distributions to stockholders
About Novartis Valuation
The stock valuation mechanism determines Novartis' current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Novartis AG ADR based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Novartis. We calculate exposure to Novartis's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Novartis's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 34.2 B | 32.3 B | |
| Pretax Profit Margin | 0.20 | 0.25 | |
| Operating Profit Margin | 0.21 | 0.18 | |
| Net Profit Margin | 0.32 | 0.17 | |
| Gross Profit Margin | 0.73 | 0.78 |
Novartis Quarterly Retained Earnings |
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A single share of Novartis represents a small ownership stake in the entity. As a stockholder of Novartis, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Novartis Dividends Analysis For Valuation
Please note that Novartis has scaled down on payment of dividends at this time. At this time, Novartis' Retained Earnings are comparatively stable compared to the past year. Price Earnings Ratio is likely to gain to 20.06 in 2024, whereas Earnings Yield is likely to drop 0.05 in 2024.
There are various types of dividends Novartis can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Novartis shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Novartis AG ADR directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Novartis pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Novartis by the value of the dividends paid out.
Novartis Growth Indicators
Investing in growth stocks can be very risky. If the company such as Novartis does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 2.1 B | |
| Quarterly Earnings Growth Y O Y | 0.846 | |
| Forward Price Earnings | 12.7389 |
Novartis Current Valuation Indicators
Novartis' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Novartis' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Novartis, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Novartis' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Novartis' worth.Additional Tools for Novartis Stock Analysis
When running Novartis' price analysis, check to measure Novartis' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Novartis is operating at the current time. Most of Novartis' value examination focuses on studying past and present price action to predict the probability of Novartis' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Novartis' price. Additionally, you may evaluate how the addition of Novartis to your portfolios can decrease your overall portfolio volatility.