Latest Ratios: P/E Ratio 10.9x · EV/EBITDA 8.2x · ROE 60.7%. (1996–2025 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 | $169.5B | $226.3B | $383.9B | $465.0B | $307.5B | $257.9B | $163.4B | $137.7B | $111.7B | $133.0B | $90.9B |
| Enterprise Value | $185.4B | $330.8B | $471.0B | $477.6B | $320.7B | $273.9B | $163.0B | $136.0B | $96.6B | $115.9B | $72.4B |
| P/E Ratio → | 10.91 | 2.21 | 3.80 | 5.56 | 5.54 | 5.40 | 3.88 | 3.53 | 2.89 | 3.49 | 2.40 |
| P/S Ratio | 3.61 | 0.73 | 1.32 | 2.00 | 1.74 | 1.83 | 1.29 | 1.13 | 1.00 | 1.19 | 0.81 |
| P/B Ratio | 5.76 | 1.17 | 2.68 | 4.36 | 3.68 | 3.65 | 15.70 | 15.91 | 2.16 | 2.67 | 2.01 |
| P/FCF | 38.49 | 7.81 | 5.51 | 6.64 | 4.80 | 5.42 | 5.47 | 3.87 | 3.47 | 4.09 | 2.27 |
| P/OCF | 9.37 | 1.90 | 3.17 | 4.27 | 3.90 | 4.69 | 3.15 | 2.94 | 2.50 | 3.23 | 1.88 |
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 | — | 1.07 | 1.62 | 2.06 | 1.81 | 1.95 | 1.28 | 1.11 | 0.86 | 1.04 | 0.65 |
| EV / EBITDA | 8.16 | 2.21 | 3.19 | 4.26 | 3.90 | 4.23 | 2.72 | 2.34 | 1.89 | 2.22 | 1.40 |
| EV / EBIT | 9.56 | 2.45 | 3.66 | 4.54 | 4.62 | 4.61 | 3.05 | 2.79 | 2.03 | 2.38 | 1.51 |
| EV / FCF | — | 11.41 | 6.76 | 6.82 | 5.00 | 5.75 | 5.46 | 3.83 | 3.00 | 3.56 | 1.81 |
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 | 81.0% | 81.0% | 84.7% | 84.6% | 83.9% | 83.2% | 83.5% | 83.5% | 84.2% | 84.2% | 84.6% |
| Operating Margin | 41.3% | 41.3% | 44.2% | 44.2% | 42.3% | 41.7% | 42.6% | 43.0% | 42.2% | 43.8% | 43.3% |
| Net Profit Margin | 33.1% | 33.1% | 34.8% | 36.0% | 31.4% | 33.9% | 33.2% | 31.9% | 34.5% | 34.1% | 33.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 60.7% | 60.7% | 80.8% | 88.1% | 72.0% | 117.7% | 442.1% | 128.8% | 76.0% | 80.2% | 82.2% |
| ROA | 20.3% | 20.3% | 25.9% | 30.1% | 25.5% | 43.7% | 197.4% | 60.1% | 36.2% | 38.2% | 40.1% |
| ROIC | 36.2% | 36.2% | 55.0% | 71.3% | 61.2% | 91.0% | 477.2% | 180.1% | 102.2% | 123.5% | 125.4% |
| ROCE | 44.4% | 44.4% | 65.3% | 77.4% | 69.5% | 109.3% | 485.9% | 157.6% | 84.4% | 92.9% | 95.9% |
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 | 0.67 | 0.67 | 0.72 | 0.25 | 0.31 | 0.38 | 0.16 | 0.08 | 0.01 | 0.03 | 0.01 |
| Debt / EBITDA | 0.88 | 0.88 | 0.70 | 0.24 | 0.31 | 0.41 | 0.03 | 0.01 | 0.01 | 0.03 | 0.00 |
| Net Debt / Equity | — | 0.54 | 0.61 | 0.12 | 0.16 | 0.23 | -0.04 | -0.19 | -0.29 | -0.34 | -0.41 |
| Net Debt / EBITDA | 0.70 | 0.70 | 0.59 | 0.11 | 0.16 | 0.25 | -0.01 | -0.03 | -0.30 | -0.33 | -0.36 |
| Debt / FCF | — | 3.60 | 1.25 | 0.18 | 0.20 | 0.33 | -0.01 | -0.05 | -0.47 | -0.53 | -0.46 |
| Interest Coverage | 32.03 | 32.03 | 78.56 | 194.13 | 183.70 | 205.43 | 137.23 | 221.70 | 561.18 | 541.89 | 736.35 |
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 | 0.80 | 0.80 | 0.74 | 0.82 | 0.89 | 0.86 | 0.94 | 1.06 | 1.09 | 1.28 | 1.26 |
| Quick Ratio | 0.57 | 0.57 | 0.55 | 0.64 | 0.69 | 0.66 | 0.67 | 0.76 | 0.79 | 0.95 | 0.96 |
| Cash Ratio | 0.13 | 0.13 | 0.12 | 0.18 | 0.19 | 0.18 | 0.18 | 0.26 | 0.29 | 0.40 | 0.44 |
| Asset Turnover | — | 0.57 | 0.62 | 0.74 | 0.73 | 0.72 | 5.33 | 6.47 | 1.01 | 1.09 | 1.15 |
| Inventory Turnover | 1.18 | 1.18 | 1.09 | 1.12 | 1.17 | 1.21 | 6.87 | 7.58 | 1.08 | 1.15 | 1.20 |
| Days Sales Outstanding | — | 89.40 | 109.87 | 118.27 | 118.61 | 121.32 | 13.24 | 11.56 | 87.76 | 76.96 | 79.01 |
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 | 4.6% | 22.9% | 11.5% | 6.8% | 8.2% | 8.3% | 12.3% | 14.1% | 17.1% | 14.2% | 26.2% |
| Payout Ratio | 50.5% | 50.5% | 43.7% | 38.0% | 45.6% | 45.1% | 47.8% | 49.8% | 49.3% | 49.4% | 62.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.2% | 45.3% | 26.3% | 18.0% | 18.1% | 18.5% | 25.8% | 28.3% | 34.6% | 28.7% | 41.7% |
| FCF Yield | 2.6% | 12.8% | 18.1% | 15.1% | 20.9% | 18.5% | 18.3% | 25.8% | 28.8% | 24.4% | 44.1% |
| Buyback Yield | 0.1% | 0.6% | 5.3% | 6.4% | 7.8% | 7.5% | 10.3% | 11.1% | 13.9% | 12.7% | 16.6% |
| Total Shareholder Yield | 4.8% | 23.5% | 16.8% | 13.3% | 16.1% | 15.9% | 22.6% | 25.2% | 31.0% | 26.8% | 42.8% |
| Shares Outstanding | — | $4.4B | $4.5B | $4.5B | $4.5B | $4.6B | $4.7B | $4.8B | $4.8B | $5.0B | $5.1B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying NVO stock.
Novo Nordisk A/S's current P/E ratio is 10.9x. The historical average is 3.9x. This places it at the 100th percentile of its historical range.
Novo Nordisk A/S's current EV/EBITDA is 8.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 2.6x.
Novo Nordisk A/S's return on equity (ROE) is 60.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 61.8%.
Based on historical data, Novo Nordisk A/S is trading at a P/E of 10.9x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Novo Nordisk A/S's current dividend yield is 4.63% with a payout ratio of 50.5%.
Novo Nordisk A/S has 81.0% gross margin and 41.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Novo Nordisk A/S's Debt/EBITDA ratio is 0.9x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Competition and pricing pressure
Margin Resilience Amid Revenue Deceleration
Despite a sharp revenue slowdown, Novo Nordisk's gross margin held at 78.2% in 2026Q2, according to recent financial statements, while operating margin contracted to 34.5% from 61.6% sequentially, reflecting elevated R&D spending.
The gross margin decline from 86.0% to 78.2% in 2026Q2 suggests potential pricing concessions or product mix shifts, but the absolute level remains robust. Operating margin compression is more pronounced, driven by a surge in R&D intensity to 22.7% of revenue, as per reported figures. This indicates management is prioritizing pipeline investment over near-term profitability, which may pressure margins in the coming quarters.
Return on Capital Decelerates from Peak
ROIC fell to 6.3% in 2026Q2 from 37.0% in 2024Q3, based on reported figures, as the capital base expanded rapidly with heavy investment in manufacturing capacity and acquisitions.
The dramatic decline in ROIC from 37.0% to 6.3% over eight quarters suggests that the company is in a heavy investment phase, with asset turnover dropping from 0.32 to 0.14. While margins remain strong, the efficiency of capital deployment has deteriorated, likely due to the massive build-out of PP&E and the $81.5B acquisition outflow in 2024Q4. Investors should monitor whether these investments generate returns in line with historical levels.
Working Capital Efficiency Distorted by Negative CCC
Novo Nordisk's cash conversion cycle turned deeply negative at -374 days in 2026Q2, according to recent filings, driven by DPO of 769 days, indicating significant supplier financing leverage.
The negative CCC is primarily due to an extraordinary DPO of 769 days, which may reflect extended payment terms or timing distortions. DSO and DIO have also risen to 121 and 273 days respectively, suggesting slower collections and higher inventory levels. While the negative CCC implies Novo is using suppliers to fund operations, the sustainability of such extended terms warrants scrutiny, especially as asset turnover has halved.
Leverage Creeps Higher but Coverage Remains Adequate
Debt-to-equity rose to 0.63 in 2026Q2 from 0.27 in 2024Q1, as per financial statements, while interest coverage stood at 18.92x, indicating comfortable debt service despite rising leverage.
The increase in leverage reflects aggressive capital deployment, including acquisitions and capacity expansion. However, interest coverage of 18.92x suggests that earnings comfortably cover interest expenses. The D/EBITDA ratio of 3.75x is elevated relative to peers like Sanofi (6.68x) but remains manageable. Investors should monitor whether continued debt-funded investment pressures coverage ratios.
Liquidity Buffer Strengthens but Current Ratio Still Below 1
Cash more than doubled to $44.5B in 2026Q2, according to recent filings, yet the current ratio improved only to 0.87, still below 1.0, indicating a reliance on cash flow to meet short-term obligations.
The current ratio of 0.87 and quick ratio of 0.66 suggest that current liabilities exceed current assets, which could be a concern if cash flows were to deteriorate. However, the strong operating cash flow generation and access to credit markets mitigate this risk. The improvement from 0.74 in 2025Q1 indicates a gradual strengthening of the liquidity position, but investors should monitor the trend.
P/E Misleading Due to Earnings Volatility
The trailing P/E of 12.95 and forward P/E of 2.15, based on reported figures, are distorted by extreme quarterly earnings swings, making them unreliable for valuation.
The forward P/E of 2.15 is implausibly low, likely due to annualized earnings from a single quarter that may not be representative. The PEG ratio of 0.63 suggests undervaluation, but this is based on growth rates that are decelerating. A more appropriate metric would be EV/EBITDA, which at 9.55x is more stable and comparable to peers. Investors should use normalized earnings or EV-based multiples to assess Novo Nordisk's valuation.