Novo Nordisk A/S (NVO)
Valuation Overview•Is Novo Nordisk A/S Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
High-quality fundamentals with a strong composite quality score of 79/100, backed by robust profitability and solvency.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street sentiment is generally neutral. This is paired with healthy capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
NVO exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins (highlighted by a massive 36.2% ROIC). This is paired with a moderately leveraged but stable balance sheet.
The company is driving exceptional top-line expansion (20.4% 3Y CAGR) paired with highly explosive earnings growth (23.5% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 45.3% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $96.8B | +6.4% | +20.4% | +19.5% | +11.1% | |
| EBITDA | $63.2B | — | +22.1% | — | — | |
| Net Income | $48.6B | +1.4% | +22.6% | — | +11.4% | |
| EPS (Diluted) | $10.91 | +1.8% | +23.5% | +20.6% | +13.0% | |
| Free Cash Flow | $12.0B | -58.4% | -23.3% | -0.6% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 81.8% | 83.4% | 83.5% | 83.8% |
| Operating Margin | 45.3% | 43.2% | 42.7% | 42.9% |
| Net Margin | 37.2% | 34.6% | 33.8% | 33.7% |
| FCF Margin | 9.5% | 21.2% | 26.7% | 28.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.87 | $1.04 | +19.5% | ||
| Q1'26 | $0.90 | $1.00 | +11.1% | ||
| Q1'26 | $0.90 | $1.00 | +11.1% | ||
| Q4'25 | $0.77 | $1.02 | +32.5% | ||
| Q3'25 | $0.93 | $0.97 | +4.3% | ||
| Q2'25 | $0.92 | $0.92 | +0.0% | ||
| Q1'25 | $0.88 | $0.91 | +3.4% | ||
| Q4'24 | $0.87 | $0.88 | +1.4% |
Total return is -39.2% (1Y), lagging the benchmark by -64.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -15.2% | -24.5% | — |
| 1Y | -39.2% | -64.2% | +2.4% |
| 3YCAGR | -15.9% | -35.3% | +6.0% |
| 5YCAGR | +3.8% | -8.6% | +15.8% |
| 10YCAGR | +7.4% | -6.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Novo Nordisk A/S (NVO) valuation, health, and returns.
Novo Nordisk A/S is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +36.0% upside to DCF intrinsic value of $58.75)
Novo Nordisk A/S has multiple valuation anchors: DCF Intrinsic Value: $58.75 | Peer Relative Fair Value: $451.91 | Wall Street Analyst Target: $45.00 (implying +4.2% upside). A convergence of these signals offers higher conviction.
Novo Nordisk A/S displays good financial health with a composite quality score of 79/100, supported by a Altman Z-Score of 1.8 (grey zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 36.2%.
Novo Nordisk A/S pays a 4.1% dividend yield, covered by a 51% payout ratio with 1 years of growth, supplemented by a 0.1% buyback yield.
Novo Nordisk A/S's current growth trajectory is Decelerating. The company achieved +6.4% 1Y revenue growth and +1.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +20.4%.
Wall Street consensus is Buy based on 39 analysts, beating EPS expectations in 75% of recent quarters with a 5-quarter streak. The consensus price target represents a +4.2% change from current levels.
Investment risks for Novo Nordisk A/S include: -52.2% 1-year max drawdown, high beta (1.44x market volatility). Volatility risk is characterized by a beta of 1.44x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.