Latest Ratios: P/E Ratio 21.6x · EV/EBITDA 14.4x · ROE 31.0%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $296.7B | $269.5B | $198.0B | $211.2B | $188.6B | $187.1B | $205.2B | $207.8B | $168.3B | $166.6B | $146.3B |
| Enterprise Value | $322.3B | $295.1B | $217.8B | $224.2B | $209.0B | $205.7B | $233.4B | $225.8B | $187.1B | $186.1B | $163.1B |
| P/E Ratio → | 21.63 | 19.18 | 16.58 | 14.22 | 27.08 | 7.79 | 25.39 | 29.09 | 13.34 | 21.62 | 21.76 |
| P/S Ratio | 5.41 | 4.92 | 3.83 | 4.53 | 4.34 | 4.25 | 4.11 | 4.27 | 3.65 | 3.84 | 2.96 |
| P/B Ratio | 6.53 | 5.79 | 4.49 | 4.52 | 3.17 | 2.76 | 3.62 | 3.74 | 2.14 | 2.24 | 1.95 |
| P/FCF | 16.78 | 15.24 | 14.34 | 18.05 | 15.72 | 14.95 | 18.54 | 18.28 | 15.41 | 16.87 | 17.01 |
| P/OCF | 15.42 | 14.01 | 11.24 | 14.61 | 13.25 | 12.41 | 15.03 | 15.25 | 11.79 | 13.20 | 12.75 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.38 | 4.21 | 4.80 | 4.81 | 4.68 | 4.68 | 4.64 | 4.06 | 4.29 | 3.30 |
| EV / EBITDA | 14.37 | 13.16 | 10.57 | 12.42 | 14.27 | 13.14 | 14.04 | 15.14 | 13.74 | 13.85 | 11.39 |
| EV / EBIT | 18.88 | 16.74 | 14.87 | 22.47 | 26.20 | 8.12 | 21.71 | 23.07 | 12.45 | 18.89 | 19.13 |
| EV / FCF | — | 16.69 | 15.78 | 19.15 | 17.42 | 16.43 | 21.09 | 19.86 | 17.14 | 18.85 | 18.97 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 75.0% | 75.0% | 75.2% | 73.3% | 73.4% | 73.3% | 69.7% | 70.4% | 68.5% | 68.6% | 64.6% |
| Operating Margin | 31.2% | 31.2% | 28.1% | 20.9% | 18.3% | 22.9% | 20.3% | 18.7% | 18.2% | 20.0% | 16.7% |
| Net Profit Margin | 25.6% | 25.6% | 23.1% | 31.8% | 16.0% | 54.6% | 16.2% | 24.1% | 27.4% | 17.7% | 13.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 31.0% | 31.0% | 26.3% | 28.0% | 10.9% | 38.6% | 14.4% | 17.5% | 16.5% | 10.3% | 8.8% |
| ROA | 12.9% | 12.9% | 11.8% | 13.7% | 5.6% | 18.2% | 6.4% | 8.9% | 9.1% | 5.9% | 5.1% |
| ROIC | 18.8% | 18.8% | 17.6% | 10.5% | 7.2% | 8.8% | 9.6% | 8.0% | 6.6% | 7.0% | 6.7% |
| ROCE | 21.1% | 21.1% | 19.8% | 12.0% | 8.3% | 10.0% | 10.7% | 8.8% | 7.4% | 8.0% | 7.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.80 | 0.80 | 0.71 | 0.56 | 0.47 | 0.46 | 0.67 | 0.52 | 0.41 | 0.38 | 0.32 |
| Debt / EBITDA | 1.65 | 1.65 | 1.52 | 1.46 | 1.90 | 1.98 | 2.28 | 1.95 | 2.36 | 2.12 | 1.66 |
| Net Debt / Equity | — | 0.55 | 0.45 | 0.28 | 0.34 | 0.27 | 0.50 | 0.32 | 0.24 | 0.26 | 0.22 |
| Net Debt / EBITDA | 1.14 | 1.14 | 0.96 | 0.72 | 1.39 | 1.19 | 1.70 | 1.21 | 1.38 | 1.46 | 1.17 |
| Debt / FCF | — | 1.45 | 1.43 | 1.11 | 1.70 | 1.49 | 2.55 | 1.59 | 1.72 | 1.98 | 1.95 |
| Interest Coverage | 14.86 | 14.86 | 14.13 | 11.39 | 9.56 | 27.97 | 11.67 | 10.84 | 15.44 | 12.28 | 11.69 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.12 | 1.12 | 1.04 | 1.16 | 1.29 | 1.51 | 0.90 | 1.04 | 1.20 | 1.21 | 1.12 |
| Quick Ratio | 0.89 | 0.89 | 0.84 | 0.93 | 1.04 | 1.29 | 0.68 | 0.83 | 0.97 | 0.91 | 0.84 |
| Cash Ratio | 0.42 | 0.42 | 0.47 | 0.53 | 0.65 | 0.93 | 0.35 | 0.40 | 0.54 | 0.41 | 0.35 |
| Asset Turnover | — | 0.47 | 0.51 | 0.47 | 0.37 | 0.33 | 0.38 | 0.41 | 0.32 | 0.33 | 0.38 |
| Inventory Turnover | 2.18 | 2.18 | 2.24 | 2.11 | 1.61 | 1.76 | 2.12 | 2.41 | 2.09 | 1.99 | 2.80 |
| Days Sales Outstanding | — | 72.81 | 57.94 | 73.34 | 83.09 | 79.86 | 66.37 | 68.78 | 76.61 | 84.68 | 75.32 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.6% | 2.9% | 3.9% | 3.4% | 4.0% | 3.9% | 3.4% | 3.2% | 4.1% | 3.9% | 4.4% |
| Payout Ratio | 55.9% | 55.9% | 63.8% | 48.9% | 107.9% | 30.7% | 86.6% | 56.6% | 55.2% | 84.3% | 96.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.6% | 5.2% | 6.0% | 7.0% | 3.7% | 12.8% | 3.9% | 3.4% | 7.5% | 4.6% | 4.6% |
| FCF Yield | 6.0% | 6.6% | 7.0% | 5.5% | 6.4% | 6.7% | 5.4% | 5.5% | 6.5% | 5.9% | 5.9% |
| Buyback Yield | 3.1% | 3.4% | 4.2% | 4.1% | 5.6% | 1.6% | 1.4% | 2.7% | 1.2% | 3.3% | 0.8% |
| Total Shareholder Yield | 5.7% | 6.4% | 8.1% | 7.6% | 9.6% | 5.6% | 4.8% | 5.9% | 5.3% | 7.2% | 5.2% |
| Shares Outstanding | — | $2.0B | $2.0B | $2.1B | $2.2B | $2.3B | $2.3B | $2.3B | $2.3B | $2.4B | $2.4B |
U.S. drug pricing legislation
Based on current market data, Novartis trades at a forward P/E of 17.84, which appears to price in a degree of stability that contrasts with the recent deceleration in top-line growth and the looming regulatory headwinds facing its core therapeutic franchises like Entresto.
The current valuation multiple suggests that investors are paying a premium for the company's transition to a pure-play innovative medicine model. However, given the negative revenue growth observed in 2026Q1, this multiple may be difficult to sustain unless the pipeline successfully offsets the impending patent cliffs.
As reported in recent financial statements, the company's ROIC has trended downward to 4.2% in 2026Q1, a significant contraction from historical levels that suggests the firm is struggling to generate adequate returns on its heavy investments in new technology platforms and recent acquisitions.
The decline in ROIC indicates that the capital intensity required for specialized manufacturing, such as radioligand therapies, is currently outpacing the incremental returns generated by these assets. This trend warrants further investigation into whether the company's recent capital allocation strategy is truly value-accretive or merely defensive.
According to quarterly filings, the cash conversion cycle has extended to 117 days as of 2026Q1, reflecting persistent inefficiencies in inventory management and a reliance on extended payment terms that may be masking underlying operational friction within the supply chain.
The elevated DIO of 163 days suggests that the company is holding significant inventory, likely to support the complex logistics of its precision medicine portfolio. Investors should monitor whether this reflects a necessary buffer for specialized manufacturing or an inability to align production with actual market demand.
Based on the latest reported figures, the debt-to-equity ratio has climbed to 1.21, signaling a shift toward a more aggressive capital structure that leaves the company with less room to maneuver in the event of further regulatory shocks or clinical trial failures.
While interest coverage remains at 12.19x, the rapid increase in leverage over the last ten quarters suggests that the company is increasingly reliant on debt to fund its strategic transformation. This trend may limit the firm's ability to pursue future bolt-on acquisitions without further straining its balance sheet.
The P/E ratio is frequently misapplied to Novartis, as it fails to account for the significant non-cash amortization of intangible assets and restructuring charges that distort reported earnings, thereby obscuring the true cash-generating capacity of the company's innovative medicine segment.
Analysts should instead focus on EV/EBITDA or FCF-based metrics to better understand the underlying operational performance. Relying on P/E risks misinterpreting the company's valuation by ignoring the heavy R&D and acquisition-related costs that are essential to the firm's long-term competitive positioning.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying NVS stock.
Novartis AG's current P/E ratio is 21.6x. The historical average is 21.9x. This places it at the 75th percentile of its historical range.
Novartis AG's current EV/EBITDA is 14.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.6x.
Novartis AG's return on equity (ROE) is 31.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 18.4%.
Based on historical data, Novartis AG is trading at a P/E of 21.6x. This is at the 75th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Novartis AG's current dividend yield is 2.58% with a payout ratio of 55.9%.
Novartis AG has 75.0% gross margin and 31.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Novartis AG's Debt/EBITDA ratio is 1.7x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.