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Novartis AG
NYSE:NVS

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Novartis AG
NYSE:NVS
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Price: 147.48 USD 0.11% Market Closed
Market Cap: $298.6B

EV/EBIT

15.8
Current
3%
Cheaper
vs 3-y average of 16.2

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
15.8
=
Enterprise Value
$250.8B
/
EBIT
$18.7B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
15.8
=
Enterprise Value
$250.8B
/
EBIT
$18.7B

Valuation Scenarios

Novartis AG is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (16.2), the stock would be worth $151.73 (3% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+24%
Average Upside
13%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 15.8 $147.48
0%
3-Year Average 16.2 $151.73
+3%
5-Year Average 15.9 $148.41
+1%
Industry Average 19.5 $182.57
+24%
Country Average 19.5 $182.57
+24%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$250.8B
/
Jan 2026
$18.7B
=
15.8
Current
$250.8B
/
Dec 2026
$20.9B
=
12
Forward
$250.8B
/
Dec 2027
$22.3B
=
11.2
Forward
$250.8B
/
Dec 2028
$24B
=
10.5
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
CH
Novartis AG
NYSE:NVS
223.1B USD 15.8 19.8
US
Eli Lilly and Co
NYSE:LLY
867B USD 30.3 42
US
Johnson & Johnson
NYSE:JNJ
555.4B USD 21.6 26.4
CH
Roche Holding AG
SIX:ROG
248.4B CHF 13.4 20.1
UK
AstraZeneca PLC
LSE:AZN
224.8B GBP 22 28.2
US
Merck & Co Inc
NYSE:MRK
283.6B USD 11.8 15.5
IE
Endo International PLC
LSE:0Y5F
244.4B USD 970 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.1T DKK 9.5 10.9
US
Pfizer Inc
NYSE:PFE
151.6B USD 10 19.5
US
Bristol-Myers Squibb Co
NYSE:BMY
118.8B USD 8.9 16.8
FR
Sanofi SA
PAR:SAN
98.8B EUR 10.5 12.6
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
CH
Novartis AG
NYSE:NVS
Average EV/EBIT: 102.2
15.8
9%
1.8
US
Eli Lilly and Co
NYSE:LLY
30.3
22%
1.4
US
Johnson & Johnson
NYSE:JNJ
21.6
13%
1.7
CH
Roche Holding AG
SIX:ROG
13.4
6%
2.2
UK
AstraZeneca PLC
LSE:AZN
22
21%
1
US
Merck & Co Inc
NYSE:MRK
11.8
6%
2
IE
E
Endo International PLC
LSE:0Y5F
970
N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
9.5
2%
4.7
US
Pfizer Inc
NYSE:PFE
10
-4%
N/A
US
Bristol-Myers Squibb Co
NYSE:BMY
8.9
-6%
N/A
FR
Sanofi SA
PAR:SAN
10.5
12%
0.9
P/E Multiple
Earnings Growth PEG
CH
Novartis AG
NYSE:NVS
Average P/E: 21.2
19.8
14%
1.4
US
Eli Lilly and Co
NYSE:LLY
42
32%
1.3
US
Johnson & Johnson
NYSE:JNJ
26.4
8%
3.3
CH
Roche Holding AG
SIX:ROG
20.1
14%
1.4
UK
AstraZeneca PLC
LSE:AZN
28.2
25%
1.1
US
Merck & Co Inc
NYSE:MRK
15.5
14%
1.1
IE
E
Endo International PLC
LSE:0Y5F
Negative Multiple: -83.6 N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
10.9
0%
N/A
US
Pfizer Inc
NYSE:PFE
19.5
22%
0.9
US
Bristol-Myers Squibb Co
NYSE:BMY
16.8
16%
1.1
FR
Sanofi SA
PAR:SAN
12.6
16%
0.8

Market Distribution

In line with most companies in Switzerland
Percentile
54rd
Based on 894 companies
54rd percentile
21
Low
0 — 13.5
Typical Range
13.5 — 25.3
High
25.3 —
Distribution Statistics
Switzerland
Min 0
30th Percentile 13.5
Median 19.5
70th Percentile 25.3
Max 855.5

Novartis AG
Glance View

Nestled in the heart of Europe's pharmaceutical landscape, Novartis AG has firmly etched its presence as a beacon of innovation and scientific prowess. This Swiss multinational behemoth, headquartered in Basel, operates at the confluence of research-driven development and cutting-edge technology. At its core, Novartis is devoted to discovering novel therapeutics and delivering them to patients across the globe. The company’s operations span various segments, with Pharmaceuticals and Oncology standing as the pillars of its revenue model. Through these divisions, Novartis vigorously pursues advancements in the treatment of diseases, focusing on areas such as cardiovascular, immunology, neuroscience, respiratory, and oncology. The innovative medicines they develop emerge from robust pipelines bolstered by strategic investments in research and development, propelling them to the forefront of healthcare innovation. Moreover, Novartis leverages a synergy between its Sandoz division, which is known for a strong generics and biosimilars portfolio, and its advanced therapeutic areas in Pharmaceuticals. This duality not only makes the company versatile but also resilient in the face of market volatilities. Unlike many pharmaceutical giants, Novartis prioritizes a hybrid approach by combining cutting-edge biotechnology with a stronghold in cost-effective generics. This model allows Novartis to cater to both the high-margin, innovation-driven segments and the volume-based, lower-margin arenas. Ultimately, their strategic focus is not just on creating the next blockbuster drug but on improving access to healthcare solutions globally, thereby reinforcing its revenue engine while delivering on its mission to reimagine medicine.

NVS Intrinsic Value
144.64 USD
Overvaluation 2%
Intrinsic Value
Price $147.48
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