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Novartis AG
SIX:NOVN

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Novartis AG
SIX:NOVN
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Price: 113.54 CHF -2.36% Market Closed
Market Cap: CHf217.9B

EV/EBITDA

12.1
Current
11%
More Expensive
vs 3-y average of 10.9

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

EV/EBITDA
12.1
=
Enterprise Value
CHf250.8B
/
EBITDA
$24B

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

EV/EBITDA
12.1
=
Enterprise Value
CHf250.8B
/
EBITDA
$24B

Valuation Scenarios

Novartis AG is trading above its 3-year average

If EV/EBITDA returns to its 3-Year Average (10.9), the stock would be worth CHf102.49 (10% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-13%
Maximum Upside
+22%
Average Upside
1%
Scenario EV/EBITDA Value Implied Price Upside/Downside
Current Multiple 12.1 CHf113.54
0%
3-Year Average 10.9 CHf102.49
-10%
5-Year Average 10.6 CHf98.84
-13%
Industry Average 14.7 CHf138.13
+22%
Country Average 12.7 CHf118.98
+5%

Forward EV/EBITDA
Today’s price vs future ebitda

Today's Enterprise Value EBITDA Forward EV/EBITDA
CHf250.8B
/
Jan 2026
$24B
=
12.1
Current
CHf250.8B
/
Dec 2026
$23.9B
=
10.5
Forward
CHf250.8B
/
Dec 2027
$25.5B
=
9.8
Forward
CHf250.8B
/
Dec 2028
$27.4B
=
9.1
Forward
CHf250.8B
/
Dec 2029
$32.5B
=
7.7
Forward
CHf250.8B
/
Dec 2030
$34B
=
7.4
Forward
CHf250.8B
/
Dec 2031
$31.9B
=
7.9
Forward
CHf250.8B
/
Dec 2032
$30.4B
=
8.2
Forward
CHf250.8B
/
Dec 2033
$29.7B
=
8.4
Forward

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

Peer Comparison

All Multiples
EV/EBITDA
P/E
All Countries
Close
Market Cap EV/EBITDA P/E
CH
Novartis AG
SIX:NOVN
223.1B CHF 12.1 19.5
US
Eli Lilly and Co
NYSE:LLY
835.2B USD 27.4 40.5
US
Johnson & Johnson
NYSE:JNJ
547.8B USD 16.7 26
CH
Roche Holding AG
SIX:ROG
248.4B CHF 11.9 20.1
UK
AstraZeneca PLC
LSE:AZN
216.4B GBP 15.6 28
US
Merck & Co Inc
NYSE:MRK
276.9B USD 9.5 15.2
IE
Endo International PLC
LSE:0Y5F
244.4B USD 386.8 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.1T DKK 8.4 11.4
US
Pfizer Inc
NYSE:PFE
153.5B USD 7.6 19.8
US
Bristol-Myers Squibb Co
NYSE:BMY
118.2B USD 7.2 16.8
FR
Sanofi SA
PAR:SAN
97.1B EUR 10.4 12.4
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
CH
Novartis AG
SIX:NOVN
Average EV/EBITDA: 46.7
12.1
5%
2.4
US
Eli Lilly and Co
NYSE:LLY
27.4
21%
1.3
US
Johnson & Johnson
NYSE:JNJ
16.7
8%
2.1
CH
Roche Holding AG
SIX:ROG
11.9
6%
2
UK
AstraZeneca PLC
LSE:AZN
15.6
12%
1.3
US
Merck & Co Inc
NYSE:MRK
9.5
4%
2.4
IE
E
Endo International PLC
LSE:0Y5F
386.8
N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
8.4
2%
4.2
US
Pfizer Inc
NYSE:PFE
7.6
-8%
N/A
US
Bristol-Myers Squibb Co
NYSE:BMY
7.2
-9%
N/A
FR
Sanofi SA
PAR:SAN
10.4
21%
0.5
P/E Multiple
Earnings Growth PEG
CH
Novartis AG
SIX:NOVN
Average P/E: 21
19.5
14%
1.4
US
Eli Lilly and Co
NYSE:LLY
40.5
32%
1.3
US
Johnson & Johnson
NYSE:JNJ
26
8%
3.3
CH
Roche Holding AG
SIX:ROG
20.1
14%
1.4
UK
AstraZeneca PLC
LSE:AZN
28
25%
1.1
US
Merck & Co Inc
NYSE:MRK
15.2
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
11.4
0%
N/A
US
Pfizer Inc
NYSE:PFE
19.8
22%
0.9
US
Bristol-Myers Squibb Co
NYSE:BMY
16.8
16%
1
FR
Sanofi SA
PAR:SAN
12.4
16%
0.8

Market Distribution

In line with most companies in Switzerland
Percentile
44th
Based on 1 007 companies
44th percentile
12.1
Low
0 — 9.2
Typical Range
9.2 — 20.5
High
20.5 —
Distribution Statistics
Switzerland
Min 0
30th Percentile 9.2
Median 12.7
70th Percentile 20.5
Max 1 129.6

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.

NOVN Intrinsic Value
107.36 CHF
Overvaluation 5%
Intrinsic Value
Price CHf113.54
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