Novartis AG
XMUN:NOT
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EV/EBITDA
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.
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.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (10.9), the stock would be worth €111.49 (13% downside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 12.6 | €128.16 |
0%
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| 3-Year Average | 10.9 | €111.49 |
-13%
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| 5-Year Average | 10.6 | €107.52 |
-16%
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| Industry Average | 14.7 | €150.26 |
+17%
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| Country Average | 12.7 | €129.43 |
+1%
|
Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
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€250.8B
|
/ |
Jan 2026
$24B
|
= |
|
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€250.8B
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/ |
Dec 2026
$23.9B
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= |
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€250.8B
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/ |
Dec 2027
$25.5B
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= |
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€250.8B
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/ |
Dec 2028
$27.4B
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= |
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Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| 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 |
E
|
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 |
Market Distribution
| Min | 0 |
| 30th Percentile | 9.2 |
| Median | 12.7 |
| 70th Percentile | 20.5 |
| Max | 1 129.6 |
Other Multiples
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.