Latest Ratios: P/E Ratio 30.9x · EV/EBITDA 15.3x · 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 | $309.0B | $269.5B | $198.0B | $211.2B | $188.6B | $187.1B | $205.2B | $207.8B | $168.3B | $166.6B | $146.3B |
| Enterprise Value | $334.6B | $295.1B | $217.8B | $224.2B | $209.0B | $205.7B | $233.4B | $225.8B | $187.1B | $186.1B | $163.1B |
| P/E Ratio → | 30.86 | 19.18 | 16.58 | 14.22 | 27.08 | 7.79 | 25.39 | 29.09 | 13.34 | 21.62 | 21.76 |
| P/S Ratio | 5.49 | 4.92 | 3.83 | 4.53 | 4.34 | 4.25 | 4.11 | 4.27 | 3.65 | 3.84 | 2.96 |
| P/B Ratio | 6.83 | 5.79 | 4.49 | 4.52 | 3.17 | 2.76 | 3.62 | 3.74 | 2.14 | 2.24 | 1.95 |
| P/FCF | 20.82 | 15.24 | 14.34 | 18.05 | 15.72 | 14.95 | 18.54 | 18.28 | 15.41 | 16.87 | 17.01 |
| P/OCF | 16.06 | 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 | 15.28 | 13.16 | 10.57 | 12.42 | 14.27 | 13.14 | 14.04 | 15.14 | 13.74 | 13.85 | 11.39 |
| EV / EBIT | 19.59 | 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 | 2.5% | 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 | 3.2% | 5.2% | 6.0% | 7.0% | 3.7% | 12.8% | 3.9% | 3.4% | 7.5% | 4.6% | 4.6% |
| FCF Yield | 4.8% | 6.6% | 7.0% | 5.5% | 6.4% | 6.7% | 5.4% | 5.5% | 6.5% | 5.9% | 5.9% |
| Buyback Yield | 3.0% | 3.4% | 4.2% | 4.1% | 5.6% | 1.6% | 1.4% | 2.7% | 1.2% | 3.3% | 0.8% |
| Total Shareholder Yield | 5.5% | 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 30.9x. The historical average is 21.9x. This places it at the 93th percentile of its historical range.
Novartis AG's current EV/EBITDA is 15.3x. 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 30.9x. This is at the 93th 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 2.47% 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
Entresto Medicare price negotiation
Premium Multiple Versus Decelerating Growth
Based on Novartis's reported figures, the trailing P/E of 22.52 and EV/EBITDA of 14.87 sit above the large-cap European pharma cohort, while the 1.47 PEG implies the market still prices in meaningful forward earnings growth despite recent top-line moderation to 6.0%.
The valuation appears to embed continued earnings expansion, since a 1.47 PEG only holds if growth sustains near the mid-teens rate that the latest quarter no longer shows. The compression from forward P/E of 18.29 to a trailing 22.52 suggests analysts expect earnings recovery as R&D spending normalizes, which investors should monitor against the $5.2B quarterly R&D run-rate. Relative to AstraZeneca at 14.29 and Sanofi at 13.12, the premium may be justified by the RLT and siRNA platform positioning, but it leaves limited margin of safety if Entresto pricing pressure materializes.
Margin Durability Hinges on Cost Timing
As reported in the income statement, gross margin held between 73.4% and 77.6% across ten quarters, yet operating margin swung from 34.2% to 12.3%, with the latest compression driven by R&D rising to $5.2B from roughly $2.8B.
The stable gross margin points to durable pricing power in the specialty portfolio, whereas the operating margin volatility indicates that reinvestment timing, rather than structural erosion, is driving much of the earnings variance. This suggests the 12.3% latest-quarter operating margin may understate normalized earning power if R&D intensity falls back, though that outcome remains an inference rather than a confirmed trajectory. Net margin of 8.0% against 12.3% operating margin also implies a heavier below-the-line drag than in prior periods, warranting review of non-operating charges.
Returns Decaying From Peak Levels
According to reported quarterly figures, ROE fell from a 10.0% peak in 2025Q2 to 3.0% in 2026Q3, while ROIC compressed from 5.6% to 1.7%, indicating returns on the expanded asset base have deteriorated materially.
The decline in ROIC alongside a rising asset base, which grew from $97.5B to $117.1B, suggests incremental capital is not yet generating returns comparable to the legacy portfolio. Equity compression, with shareholders' equity falling from $44.0B to $37.2B, mechanically inflates the ROE drop, so investors should separate the balance sheet effect from operating performance. Whether this reflects temporary integration and R&D costs or a lasting dilution of returns cannot be determined from the supplied data alone.
Debt Service Tightening Despite Coverage
Based on Novartis's reported figures, the debt-to-equity ratio rose from 0.71 in 2024Q4 to 1.29 in 2026Q3 while interest coverage compressed from 17.31 to 3.81, signaling reduced cushion in debt service.
Coverage at 3.81 remains serviceable on its face, but the sharp decline from above 15x through 2025 indicates earnings growth has not kept pace with the debt load of $48.3B. The D/EBITDA climb from 5.33 to 8.91 suggests the company is carrying materially more obligations per unit of operating earnings than a year ago. This warrants further investigation into refinancing schedules and the cost of debt, as the data provided does not disclose maturity profiles.
Current Ratio Below Parity Under Scrutiny
As reported in financial statements, the current ratio fell to 0.88 in 2026Q3 from 1.12 in 2025Q4, while quick ratio declined to 0.70, with cash of $8.9B against $48.3B of debt implying limited immediate coverage.
A current ratio below 1.0 for a company of this scale is common in pharma where deferred revenue and short-term debt are substantial, so the signal should be read alongside cash conversion rather than in isolation. The quick ratio of 0.70 indicates reliance on receivables and inventory conversion, which the DSO of 61 days and DIO of 157 days suggest is a meaningful working capital commitment. Under severe stress, the position may depend on sustained operating cash inflows, and investors should monitor whether cash reserves rebuild.
Misapplied Ratio: P/E on Restructuring Earnings
The trailing P/E of 22.52 is most commonly misapplied to Novartis because reported net income carries amortization and restructuring charges that distort earnings power, making FCF-based or core-adjusted multiples more representative.
P/E treats amortization of acquired intangibles and legal or restructuring provisions as recurring drags, which may understate the cash generation of an intangible-heavy business with goodwill of $27.2B. Price-to-free-cash-flow of 17.40 may provide a cleaner read on the valuation, though latest-quarter FCF margin volatility from 12.3% to 41.2% limits its reliability on a single period. Analysts should consider a multi-quarter normalized FCF or core-EPS basis before drawing conclusions from the headline multiple.