# Novartis AG (NVS) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Healthcare / Pharmaceuticals. Price $159.99, market value $304.1 billion.

## Valuation
- **P/E (trailing): 24.2×** (5-yr avg 15.7×, 3-yr avg 15.7×). Novartis AG trades at 24.2× trailing earnings, well above its own five-year average of 15.7×: investors are paying up relative to the company's past. The Healthcare median in the September 2026 study was 28.5×. Forward P/E is 16.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.75**. A PEG of 0.75 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 5.4×**. Each dollar of revenue is priced at 5.4×.
- **Price / book: 7.3×**. The shares trade at 7.3× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 13.1×**. Enterprise value is 13.1× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.9%** (5-yr avg 7.8%). Free cash flow equals 4.9% of the market value, below its five-year average of 7.8%, so the shares are pricier on cash than usual.
- **Earnings yield: 4.1%**. The inverse of the P/E: 4.1% of the price is earned each year.

## Profitability
- **Gross margin: 74.7%**. Novartis AG keeps 74.7% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 30.2%**. 30.2% of revenue is left after running the business, an exceptional level.
- **Return on equity: 30.0%**. 30.0% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 39.2%**. Return on all capital, debt included, is 39.2%: comfortably above what that capital costs.
- **Return on assets: 11.5%**. Each dollar of assets produces 11.5% of profit.

## Growth
- **EPS growth (1 yr): 21.8%** (3-yr 31.1%/yr, 5-yr 15.2%/yr). Earnings per share rose 21.8%.
- **Free-cash-flow growth (3 yr): 9.7%/yr**. Free cash flow has compounded at 9.7% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.01**. Debt is 0.01 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Novartis AG holds more cash than debt.
- **Interest coverage: 12.3×**. Operating profit covers interest 12.3× over, a safe margin.

## Dividends
- **Dividend yield: 2.96%** ($4.67 per share, trailing). Novartis AG yields 2.96%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 56%**. 56% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 3**. 3 straight years of increases.
- **Dividend growth (5 yr): 5.6%/yr** (1-yr 6.8%). The dividend has grown 5.6% a year over five years.
- **Shareholder yield: 5.2%**. Dividends plus net buybacks return 5.2% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (11 analysts). 11 analysts cover Novartis AG; the consensus is hold, with an average price target of $157.83 (-1% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 28.4%** (YTD 19.6%, 3-mo 7.3%). The shares are up 28.4% over twelve months including dividends.
- **From 52-week high: -6.1%** (31.6% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 55**. An RSI of 55 is neutral.
- **Beta (1 yr): 0.28** (volatility 23%). Beta of 0.28 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NVS · Page: https://foliofundamentals.com/stocks/nvs

Not investment advice.