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Novartis AG
XMUN:NOT

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Novartis AG
XMUN:NOT
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Price: 128.16 EUR -2.36%
Market Cap: €263.4B

EV/EBITDA

12.6
Current
15%
More Expensive
vs 3-y median 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
12.6
=
Enterprise Value
€250.8B
/
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
12.6
=
Enterprise Value
€250.8B
/
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 €111.49 (13% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-16%
Maximum Upside
+17%
Average Downside
3%
Scenario EV/EBITDA Value Implied Price Upside/Downside
Current Multiple 12.6 €128.16
0%
3-Year Average 10.9 €111.49
-13%
5-Year Average 10.6 €107.52
-16%
Industry Average 14.7 €150.26
+17%
Country Average 12.7 €129.43
+1%

Forward EV/EBITDA
Today’s price vs future ebitda

Today's Enterprise Value EBITDA Forward EV/EBITDA
€250.8B
/
Jan 2026
$24B
=
12.6
Current
€250.8B
/
Dec 2026
$23.9B
=
10.5
Forward
€250.8B
/
Dec 2027
$25.5B
=
9.8
Forward
€250.8B
/
Dec 2028
$27.4B
=
9.1
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
XMUN:NOT
225.3B EUR 12.6 20.3
US
Eli Lilly and Co
NYSE:LLY
854.1B USD 28.6 42.3
US
Johnson & Johnson
NYSE:JNJ
564.8B USD 17.2 26.8
CH
Roche Holding AG
SIX:ROG
248.4B CHF 11.5 19.4
UK
AstraZeneca PLC
LSE:AZN
230.5B GBP 16.8 30.4
US
Merck & Co Inc
NYSE:MRK
285.7B USD 9.9 16
IE
Endo International PLC
LSE:0Y5F
244.4B USD 386.8 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.1T DKK 8.3 11.3
US
Pfizer Inc
NYSE:PFE
154.8B USD 7.7 20.1
US
Bristol-Myers Squibb Co
NYSE:BMY
118.7B USD 7.3 17.2
UK
GSK plc
XETRA:GS71
99.3B EUR 8.3 15.3
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
CH
Novartis AG
XMUN:NOT
Average EV/EBITDA: 46.8
12.6
5%
2.5
US
Eli Lilly and Co
NYSE:LLY
28.6
21%
1.4
US
Johnson & Johnson
NYSE:JNJ
17.2
8%
2.1
CH
Roche Holding AG
SIX:ROG
11.5
6%
1.9
UK
AstraZeneca PLC
LSE:AZN
16.8
12%
1.4
US
Merck & Co Inc
NYSE:MRK
9.9
4%
2.5
IE
E
Endo International PLC
LSE:0Y5F
386.8
N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
8.3
2%
4.2
US
Pfizer Inc
NYSE:PFE
7.7
-8%
N/A
US
Bristol-Myers Squibb Co
NYSE:BMY
7.3
-10%
N/A
UK
GSK plc
XETRA:GS71
8.3
3%
2.8
P/E Multiple
Earnings Growth PEG
CH
Novartis AG
XMUN:NOT
Average P/E: 21.9
20.3
14%
1.5
US
Eli Lilly and Co
NYSE:LLY
42.3
31%
1.4
US
Johnson & Johnson
NYSE:JNJ
26.8
8%
3.4
CH
Roche Holding AG
SIX:ROG
19.4
14%
1.4
UK
AstraZeneca PLC
LSE:AZN
30.4
25%
1.2
US
Merck & Co Inc
NYSE:MRK
16
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
11.3
0%
N/A
US
Pfizer Inc
NYSE:PFE
20.1
22%
0.9
US
Bristol-Myers Squibb Co
NYSE:BMY
17.2
16%
1.1
UK
GSK plc
XETRA:GS71
15.3
14%
1.1

Market Distribution

In line with most companies in Switzerland
Percentile
57th
Based on 1 007 companies
57th percentile
14.4
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.

NOT Intrinsic Value
123.99 EUR
Overvaluation 3%
Intrinsic Value
Price €128.16
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