Novartis Valuation

NVS Stock  USD 96.73  0.85  0.89%   
At this time, the firm appears to be undervalued. Novartis AG ADR secures a last-minute Real Value of $105.53 per share. The latest price of the firm is $96.73. Our model forecasts the value of Novartis AG ADR from analyzing the firm fundamentals such as Profit Margin of 0.32 %, current valuation of 208.38 B, and Return On Equity of 0.16 as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
Price Book
4.1996
Enterprise Value
208.4 B
Enterprise Value Ebitda
11.4151
Price Sales
4.2474
Forward PE
13.587
Undervalued
Today
96.73
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.
Our valuation method for Novartis AG ADR is useful when determining the fair value of the Novartis stock, 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 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  96.73 Real  105.53 Target  112.75 Hype  96.73 Naive  94.58
The real value of Novartis Stock, also known as its intrinsic value, is the underlying worth of Novartis AG ADR 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.
105.53
Real Value
106.60
Upside
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:
Earnings
Estimates (0)
LowProjectedHigh
1.681.811.89
Details
Hype
Prediction
LowEstimatedHigh
95.6696.7397.80
Details
Potential
Annual Dividend
LowForecastedHigh
1.141.161.17
Details
12 Analysts
Consensus
LowTarget PriceHigh
102.60112.75125.15
Details

Novartis Investments

6.18 Billion

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 ADR is considered to be number one stock in last dividend paid category among related companies. It is considered to be number one stock in price to sales category among related companies fabricating about  1.08  of Price To Sales per Last Dividend Paid. Price To Sales Ratio is likely to drop to 3.66 in 2024. 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' Stock . 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 stock valuation mechanism determines the current worth of Novartis AG ADR on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Novartis AG ADR. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Novartis AG ADR 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.
Last ReportedProjected for 2024
Gross Profit34.2 B32.3 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

49.65 Billion

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.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Novartis' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Novartis' value is low or high relative to the company's performance and growth projections. Determining the market value of Novartis can be done in different ways, such as multiplying its stock price by its outstanding shares.
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. Retained Earnings is likely to gain to about 57.8 B in 2024, whereas Price Earnings Ratio is likely to drop 13.62 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

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 Outstanding2.1 B
Quarterly Earnings Growth Y O Y4.987
Forward Price Earnings13.587

Novartis Current Valuation Indicators

Valuation refers to the process of determining the present value of Novartis AG ADR and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Novartis we look at many different elements of the entity such as Novartis's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Novartis' valuation analysis is also 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.
When determining whether Novartis AG ADR is a strong investment it is important to analyze Novartis' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Novartis' future performance. For an informed investment choice regarding Novartis Stock, refer to the following important reports:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Novartis AG ADR. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real.
You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

Complementary 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.
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Is Novartis' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Novartis. If investors know Novartis will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Novartis listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
4.987
Dividend Share
3.919
Earnings Share
4.1
Revenue Per Share
22.467
Quarterly Revenue Growth
0.074
The market value of Novartis AG ADR is measured differently than its book value, which is the value of Novartis that is recorded on the company's balance sheet. Investors also form their own opinion of Novartis' value that differs from its market value or its book value, called intrinsic value, which is Novartis' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Novartis' market value can be influenced by many factors that don't directly affect Novartis' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Novartis' value and its price as these two are different measures arrived at by different means. Investors typically determine if Novartis is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Novartis' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.