Latest Ratios: P/E Ratio 19.8x · EV/EBITDA 13.2x · 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 | $271.3B | $269.5B | $198.0B | $211.2B | $188.6B | $187.1B | $205.2B | $207.8B | $168.3B | $166.6B | $146.3B |
| Enterprise Value | $296.8B | $295.1B | $217.8B | $224.2B | $209.0B | $205.7B | $233.4B | $225.8B | $187.1B | $186.1B | $163.1B |
| P/E Ratio → | 19.85 | 19.18 | 16.58 | 14.22 | 27.08 | 7.79 | 25.39 | 29.09 | 13.34 | 21.62 | 21.76 |
| P/S Ratio | 4.95 | 4.92 | 3.83 | 4.53 | 4.34 | 4.25 | 4.11 | 4.27 | 3.65 | 3.84 | 2.96 |
| P/B Ratio | 5.99 | 5.79 | 4.49 | 4.52 | 3.17 | 2.76 | 3.62 | 3.74 | 2.14 | 2.24 | 1.95 |
| P/FCF | 15.34 | 15.24 | 14.34 | 18.05 | 15.72 | 14.95 | 18.54 | 18.28 | 15.41 | 16.87 | 17.01 |
| P/OCF | 14.10 | 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 | 13.24 | 13.16 | 10.57 | 12.42 | 14.27 | 13.14 | 14.04 | 15.14 | 13.74 | 13.85 | 11.39 |
| EV / EBIT | 17.39 | 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 | 2.8% | 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 | 5.0% | 5.2% | 6.0% | 7.0% | 3.7% | 12.8% | 3.9% | 3.4% | 7.5% | 4.6% | 4.6% |
| FCF Yield | 6.5% | 6.6% | 7.0% | 5.5% | 6.4% | 6.7% | 5.4% | 5.5% | 6.5% | 5.9% | 5.9% |
| Buyback Yield | 3.4% | 3.4% | 4.2% | 4.1% | 5.6% | 1.6% | 1.4% | 2.7% | 1.2% | 3.3% | 0.8% |
| Total Shareholder Yield | 6.2% | 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 |
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 19.8x. The historical average is 21.9x. This places it at the 68th percentile of its historical range.
Novartis AG's current EV/EBITDA is 13.2x. 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 19.8x. This is at the 68th 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 2.82% 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.
Key Metrics
Top Statement Risk
Rising leverage from acquisitions
Margins Hold Despite Revenue Dip
Novartis's gross margin remained resilient at 74.5% in 2026Q2, while operating margin compressed to 32.8% from 34.2% a year earlier, according to reported financials, indicating cost pressures amid slowing growth.
The stability of gross margin around 74-77% over ten quarters suggests strong pricing power and a favorable product mix, but the operating margin erosion points to rising SG&A or R&D intensity. Net margin of 22.7% in 2026Q2 is still robust, yet the volatility in net income (swings from -65.7% to +84.7% EPS growth) implies non-operating items may distort true earning power. Investors should focus on operating margin as the cleaner measure of core profitability, given the noise from one-off gains or charges.
Return on Capital Decelerates
ROIC fell to 4.4% in 2026Q2 from 5.6% a year earlier, while ROE dropped to 8.1% from 10.0%, based on reported figures, suggesting the company is generating lower returns on its expanding capital base.
The decline in ROIC and ROE coincides with a 29% increase in total assets and a 79% surge in debt, indicating that recent acquisitions have not yet delivered proportional returns. The asset turnover ratio has remained stagnant at 0.12, implying that efficiency gains are not offsetting the capital intensity of M&A. This trend warrants monitoring: if returns do not recover as integration benefits materialize, the company may be destroying value relative to its cost of capital.
Working Capital Cycle Lengthens
Novartis's cash conversion cycle extended to 110 days in 2026Q2 from 101 days in 2025Q2, driven by higher DSO (61 vs 55) and DIO (155 vs 166), according to quarterly data, indicating slower cash recovery from customers and inventory.
The lengthening of the cash conversion cycle suggests that Novartis is taking longer to collect receivables and turn over inventory, which could strain liquidity if the trend persists. DPO has remained relatively stable around 106-120 days, indicating that the company is not stretching supplier payments to offset the working capital drag. This inefficiency may be a byproduct of product mix shifts or channel dynamics, but it reduces the quality of cash flow generation.
Leverage Climbs on M&A Spree
Debt-to-equity rose to 1.17 in 2026Q2 from 0.69 in 2024Q1, while D/EBITDA increased to 8.26 from 5.82, according to reported balance sheet data, signaling a significant increase in financial risk.
The surge in leverage is primarily attributable to the $12B acquisition in 2026Q1, which inflated debt levels. Interest coverage remains comfortable at 10.24x, but the trend is deteriorating from 16.64x in 2024Q2. If operating income stagnates or declines, the coverage ratio could compress further, raising refinancing risk. Investors should monitor whether the acquired assets generate sufficient cash flow to service this debt and whether management will prioritize deleveraging.
Liquidity Buffer Thins
Current ratio fell to 0.86 in 2026Q2 from 1.12 in 2025Q4, with quick ratio at 0.67, based on reported figures, indicating that short-term obligations now exceed liquid assets.
The deterioration in liquidity ratios suggests that Novartis may face challenges meeting near-term liabilities without relying on external financing or cash flow from operations. Cash reserves declined to $7.6B from $11.4B, partly due to acquisition spending. While the company has strong operating cash flow, the thin liquidity buffer could be a concern if a downturn or unexpected expense occurs. This warrants close monitoring of upcoming debt maturities and the company's ability to refinance.
P/E Misleads on Growth
The P/E ratio of 21.72 appears reasonable, but it obscures the impact of one-time items and acquisition-related charges, which have distorted earnings, according to reported financials, making forward P/E of 17.78 a more reliable gauge.
The most commonly misapplied ratio for Novartis is the trailing P/E, because earnings have been volatile due to non-operating items and M&A accounting. Investors should instead use EV/EBITDA (14.38) or forward P/E (17.78) to assess valuation, as these metrics smooth out non-cash charges and better reflect ongoing operations. Additionally, given the company's high debt levels, EV-based multiples are more appropriate than equity-only multiples to capture the true cost of the capital structure.