Novartis Valuation
| NVSEF Stock | USD 96.00 0.89 0.94% |
At this time, the firm appears to be overvalued. Novartis AG secures a last-minute Real Value of $83.84 per share. The latest price of the firm is $96.0. Our model forecasts the value of Novartis AG from analyzing the firm fundamentals such as Profit Margin of 0.13 %, current valuation of 207.39 B, and Return On Equity of 0.11 as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend locking in undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
Overvalued
Today
Please note that Novartis' price fluctuation is very steady at this time. Calculation of the real value of Novartis AG 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.
Our valuation method for Novartis AG is useful when determining the fair value of the Novartis pink sheet, which is usually determined by what a typical buyer is willing to pay for full or partial control of Novartis. Since Novartis is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Novartis Pink Sheet. 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 96.0 | Real 83.84 | Hype 95.11 |
The real value of Novartis Pink Sheet, also known as its intrinsic value, is the underlying worth of Novartis AG Company, which is reflected in its stock price. It is based on Novartis' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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 helps investors to forecast how Novartis pink sheet'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: Novartis Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Novartis's current stock value. Our valuation model uses many indicators to compare Novartis value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Novartis competition to find correlations between indicators driving Novartis's intrinsic value. More Info.Novartis AG is considered to be number one stock in price to earning category among related companies. It is considered to be number one stock in price to book category among related companies fabricating about 0.13 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Novartis AG is roughly 7.78 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Novartis by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Novartis' Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Novartis' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Novartis' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Novartis and how it compares across the competition.
About Novartis Valuation
The pink sheet valuation mechanism determines the current worth of Novartis AG on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Novartis AG. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Novartis AG based exclusively on its fundamental and basic technical indicators. By analyzing Novartis's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Novartis's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Novartis's related companies.Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company was incorporated in 1996 and is headquartered in Basel, Switzerland. Novartis operates under Drug ManufacturersGeneral classification in the United States and is traded on OTC Exchange. It employs 104323 people.
8 Steps to conduct Novartis' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Novartis' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Novartis' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Novartis' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Novartis' revenue streams: Identify Novartis' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Novartis' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Novartis' growth potential: Evaluate Novartis' management, business model, and growth potential.
- Determine Novartis' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Novartis' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Novartis Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, 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 | -0.905 | |
| Forward Price Earnings | 14.2857 |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Novartis AG. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income. Note that the Novartis AG information on this page should be used as a complementary analysis to other Novartis' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Complementary Tools for Novartis Pink Sheet 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.
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