Novo Nordisk A/S engages in the discovery, development, manufacture, and marketing of pharmaceutical products worldwide. It operates in two segments, Diabetes Care and Biopharmaceuticals. The company was founded in 1925 and is based in Bagsvaerd, Denmark.
NVO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NVO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Novo Nordisk A S ranked in the 74th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 304%. The most interesting components of our discounted cash flow analysis for Novo Nordisk A S ended up being:
The company has produced more trailing twelve month cash flow than 99.07% of its sector Healthcare.
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than merely 3.74% of the free cash flow producing stocks we're observing.
NVO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 58.47% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Novo Nordisk A S? See INVA, UHS, ARA, ALXN, and ANTM.
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