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Novartis AG
SIX:NOVN

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Novartis AG
SIX:NOVN
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Price: 113.1 CHF -1.41% Market Closed
Market Cap: CHf217B

EV/FCFF

19
Current
18%
More Expensive
vs 3-y average of 16.2

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
19
=
Enterprise Value
CHf250.8B
/
Free Cash Flow to Firm
$15.2B

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
19
=
Enterprise Value
CHf250.8B
/
Free Cash Flow to Firm
$15.2B

Valuation Scenarios

Novartis AG is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (16.2), the stock would be worth CHf96.09 (15% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-17%
Maximum Upside
+21%
Average Upside
0%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 19 CHf113.1
0%
3-Year Average 16.2 CHf96.09
-15%
5-Year Average 15.7 CHf93.39
-17%
Industry Average 23 CHf136.78
+21%
Country Average 21.3 CHf126.84
+12%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
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Market Distribution

In line with most companies in Switzerland
Percentile
39th
Based on 857 companies
39th percentile
19
Low
0 — 16.2
Typical Range
16.2 — 34.3
High
34.3 —
Distribution Statistics
Switzerland
Min 0
30th Percentile 16.2
Median 21.3
70th Percentile 34.3
Max 776.6

Novartis AG
Glance View

Nestled in the heart of Europe's pharmaceutical landscape, Novartis AG has firmly etched its presence as a beacon of innovation and scientific prowess. This Swiss multinational behemoth, headquartered in Basel, operates at the confluence of research-driven development and cutting-edge technology. At its core, Novartis is devoted to discovering novel therapeutics and delivering them to patients across the globe. The company’s operations span various segments, with Pharmaceuticals and Oncology standing as the pillars of its revenue model. Through these divisions, Novartis vigorously pursues advancements in the treatment of diseases, focusing on areas such as cardiovascular, immunology, neuroscience, respiratory, and oncology. The innovative medicines they develop emerge from robust pipelines bolstered by strategic investments in research and development, propelling them to the forefront of healthcare innovation. Moreover, Novartis leverages a synergy between its Sandoz division, which is known for a strong generics and biosimilars portfolio, and its advanced therapeutic areas in Pharmaceuticals. This duality not only makes the company versatile but also resilient in the face of market volatilities. Unlike many pharmaceutical giants, Novartis prioritizes a hybrid approach by combining cutting-edge biotechnology with a stronghold in cost-effective generics. This model allows Novartis to cater to both the high-margin, innovation-driven segments and the volume-based, lower-margin arenas. Ultimately, their strategic focus is not just on creating the next blockbuster drug but on improving access to healthcare solutions globally, thereby reinforcing its revenue engine while delivering on its mission to reimagine medicine.

NOVN Intrinsic Value
107.36 CHF
Overvaluation 5%
Intrinsic Value
Price CHf113.1
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