Novartis may be undervalued with mixed growth prospects, but the 10 analysts following the company give it an rating of hold. Their target prices range from $123.0 to $180.0 per share, for an average of $153.87. At today's price of $145.41, Novartis is trading -5.5% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.
Novartis AG researches, develops, manufactures, distributes, markets, and sells pharmaceutical medicines in Switzerland and internationally. Based in Basel, Switzerland, the Large-Cap Health Care company has 75,267 full time employees. Novartis has offered a 3.1% dividend yield over the last 12 months.
Novartis has a trailing twelve month P/E ratio of 20.8, compared to an average of 22.94 for the Health Care sector. Considering its EPS guidance of $9.95, the company has a forward P/E ratio of 14.6.
Novartis is overpriced compared to its book value, since its P/B ratio of 6.01 is higher than the sector average of 3.19. The company's shares are currently 132.1% below their Graham number, indicating that its shares have a margin of safety.
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,239 | $1,251 | $1,283 | $1,220 | $1,405 | $2,142 |
| Net Income (M) | $8,071 | $24,018 | $6,955 | $14,854 | $11,939 | $13,967 |
| Net Interest Expense (M) | $869 | $787 | $800 | $855 | $1,006 | $1,144 |
| Diluted Shares (M) | 2,257 | 2,235 | 2,120 | 2,044 | 1,975 | 1,908 |
| Earnings Per Share | $3.52 | $10.63 | $3.17 | $7.1 | $5.87 | $7.15 |
| EPS Growth | n/a | 201.99% | -70.18% | 123.97% | -17.32% | 21.81% |
| Free Cash Flow (M) | $13,650 | $15,071 | $14,236 | $14,458 | $17,619 | $19,144 |
| Total Debt (M) | $9,785 | $6,295 | $5,931 | $6,175 | $8,232 | $5,602 |
| Current Ratio | 0.9 | 1.51 | 1.29 | 1.16 | 1.04 | 1.12 |
