Novartis AG (NVS) Financial Ratios
28 years of historical data (1998–2025) · Healthcare · Drug Manufacturers - General
EV/EBITDA
↑
13.66
+7% vs avg
5yr avg: 12.71
30Y Low8.0·High18.4
P/FCF
↑
15.87
+1% vs avg
5yr avg: 15.66
30Y Low9.6·High34.8
P/B Ratio
↑
6.18
↑+49% vs avg
5yr avg: 4.15
30Y Low1.6·High5.8
ROE
↓
31.0%
↓+15% vs avg
5yr avg: 27.0%
30Y Low9%·High39%
Debt/EBITDA
↓
1.65
↓-3% vs avg
5yr avg: 1.70
30Y Low0.6·High2.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
NVS Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Novartis AG trades at 20.5x earnings, 21% above its 5-year average of 17.0x, sitting at the 68th percentile of its historical range. Compared to the Healthcare sector median P/E of 22.1x, the stock trades at a discount of 8%. On a free-cash-flow basis, the stock trades at 15.9x P/FCF, roughly in line with the 5-year average of 15.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $280.6B | $269.5B | $198.0B | $211.2B | $188.6B | $187.1B | $205.2B | $207.8B | $168.3B | $166.6B | $146.3B |
| Enterprise Value | $306.2B | $295.1B | $217.8B | $224.2B | $209.0B | $205.7B | $233.4B | $225.8B | $187.1B | $186.1B | $163.1B |
| P/E Ratio → | 20.46 | 19.18 | 16.58 | 14.22 | 27.08 | 7.79 | 25.39 | 29.09 | 13.34 | 21.62 | 21.76 |
| P/S Ratio | 5.12 | 4.92 | 3.83 | 4.53 | 4.34 | 4.25 | 4.11 | 4.27 | 3.65 | 3.84 | 2.96 |
| P/B Ratio | 6.18 | 5.79 | 4.49 | 4.52 | 3.17 | 2.76 | 3.62 | 3.74 | 2.14 | 2.24 | 1.95 |
| P/FCF | 15.87 | 15.24 | 14.34 | 18.05 | 15.72 | 14.95 | 18.54 | 18.28 | 15.41 | 16.87 | 17.01 |
| P/OCF | 14.58 | 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
NVS EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Novartis AG's enterprise value stands at 13.7x EBITDA, 7% above its 5-year average of 12.7x. This is roughly in line with the Healthcare sector median of 14.2x.
| 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 | 13.66 | 13.16 | 10.57 | 12.42 | 14.27 | 13.14 | 14.04 | 15.14 | 13.74 | 13.85 | 11.39 |
| EV / EBIT | 17.94 | 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 |
NVS Profitability
Margins and return-on-capital ratios measuring operating efficiency
Novartis AG earns an operating margin of 31.2%. Operating margins have expanded from 20.9% to 31.2% over the past 3 years, signaling improving operational efficiency. Return on equity of 31.0% is exceptionally high. ROIC of 18.8% represents solid returns on invested capital.
Margins
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% |
Return on Capital
| 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% |
NVS Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Novartis AG carries a Debt/EBITDA ratio of 1.7x, which is manageable (49% below the sector average of 3.2x). Net debt stands at $25.6B ($37.0B total debt minus $11.4B cash). Interest coverage of 14.9x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| 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 |
NVS Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.12x means Novartis AG can comfortably meet its short-term obligations, though there is limited excess liquidity.
| 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 |
NVS Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Novartis AG returns 6.0% to shareholders annually — split between a 2.7% dividend yield and 3.3% buyback yield. A payout ratio of 55.9% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 4.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 2.7% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.9% | 5.2% | 6.0% | 7.0% | 3.7% | 12.8% | 3.9% | 3.4% | 7.5% | 4.6% | 4.6% |
| FCF Yield | 6.3% | 6.6% | 7.0% | 5.5% | 6.4% | 6.7% | 5.4% | 5.5% | 6.5% | 5.9% | 5.9% |
| Buyback Yield | 3.3% | 3.4% | 4.2% | 4.1% | 5.6% | 1.6% | 1.4% | 2.7% | 1.2% | 3.3% | 0.8% |
| Total Shareholder Yield | 6.0% | 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 |
Peer Comparison
Compare NVS with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 NVSYou | $281B | 20.5 | 13.7 | 15.9 | 75.0% | 31.2% | 31.0% | 18.8% | 1.7 |
 PFE | $143B | 18.5 | 10.3 | 15.8 | 70.3% | 24.7% | 8.9% | 7.5% | 3.3 |
 AZN | $271B | 26.7 | 15.2 | 23.1 | 81.9% | 23.4% | 22.9% | 14.9% | 1.5 |
 NVO | $192B | 12.2 | 9.1 | 43.2 | 81.0% | 41.3% | 60.7% | 36.2% | 0.9 |
 SNY | $102B | 18.2 | 10.8 | 10.1 | 72.3% | 13.6% | 10.4% | 5.5% | 2.3 |
 GSK | $102B | 6.9 | 8.6 | 13.3 | 72.4% | 25.5% | 39.4% | 22.1% | 1.7 |
 MRK | $281B | 15.6 | 10.8 | 22.8 | 72.0% | 36.2% | 36.9% | 22.0% | 1.7 |
 LLY | $1.0T | 47.8 | 34.3 | 115.6 | 83.8% | 45.6% | 101.2% | 41.8% | 1.4 |
 ABT | $154B | 11.6 | 16.1 | 24.2 | 50.8% | 16.3% | 30.9% | 9.9% | 1.5 |
 BMY | $110B | 15.7 | 8.9 | 8.6 | 67.6% | 26.3% | 40.4% | 16.9% | 2.8 |
 ABBV | $383B | 91.4 | 15.8 | 21.5 | 70.2% | 32.8% | 6214.7% | 23.9% | 2.4 |
| Healthcare Median | — | 22.1 | 14.2 | 18.5 | 63.9% | -4.3% | -32.6% | -11.6% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 28 years · Updated daily
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NVS — Frequently Asked Questions
Quick answers to the most common questions about buying NVS stock.
What is Novartis AG's P/E ratio?
Novartis AG's current P/E ratio is 20.5x. The historical average is 21.9x. This places it at the 68th percentile of its historical range.
What is Novartis AG's EV/EBITDA?
Novartis AG's current EV/EBITDA is 13.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.6x.
What is Novartis AG's ROE?
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%.
Is NVS stock overvalued?
Based on historical data, Novartis AG is trading at a P/E of 20.5x. This is at the 68th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Novartis AG's dividend yield?
Novartis AG's current dividend yield is 2.73% with a payout ratio of 55.9%.
What are Novartis AG's profit margins?
Novartis AG has 75.0% gross margin and 31.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Novartis AG have?
Novartis AG's Debt/EBITDA ratio is 1.7x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.