Novartis AG offers patented prescription medicines in various therapeutic areas, such as oncology, cardio-metabolic, immunology and dermatology, retina, respiratory, neuroscience, and established medicines. The company was founded in 1895 and is based in Basel, Switzerland.
NVS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NVS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Novartis Ag ranked in the 42th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 32.33%. The most interesting components of our discounted cash flow analysis for Novartis Ag ended up being:
NVS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 29.51% of tickers in our DCF set.
The weighted average cost of capital for the company is 8. This value is greater than merely 24.31% stocks in the Healthcare sector that generate free cash flow.
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 Novartis Ag? See AMGN, QDEL, STE, MEDP, and USPH.
Novartis (NVS): Q4 Non-GAAP EPS of $1.34 misses by $0.05; GAAP EPS of $0.92 misses by $0.39.Revenue of $12.77B (+3.0% Y/Y) misses by $100M.Core operating profit of $3.5B vs. estimate of $3.63B.Core operating income margin was 27.4% compared to estimate of 28.4%.2021 Outlook: Net Sales expected to grow low to mid...
(NOVN) stock slipped 2.4% in early trading on Tuesday, as the Swiss pharmaceutical company offered cautious guidance and said the Covid-19 pandemic would continue to affect sales through the first half of 2021. Net sales in the fourth quarter rose 1% to $12.77 billion, below the FactSet consensus of $12.9 billion, as the company said Covid-19 lockdowns continued to negatively impact sales, most notably in dermatology and ophthalmology, while its Sandoz retail business has also been affected during the year. Fourth-quarter net profit grew 93% to $2.1 billion but also missed estimates of $2.66 billion, while core operating income rose 2% to $3.5 billion.