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Novartis AG
SIX:NOVN

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Novartis AG
SIX:NOVN
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Price: 113.5 CHF -0.18%
Market Cap: CHf217.8B

P/OCF

14.3
Current
14%
More Expensive
vs 3-y average of 12.5

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
14.3
=
Market Cap
CHf236.4B
/
Operating Cash Flow
$19.1B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
14.3
=
Market Cap
CHf236.4B
/
Operating Cash Flow
$19.1B

Valuation Scenarios

Novartis AG is trading above its 3-year average

If P/OCF returns to its 3-Year Average (12.5), the stock would be worth CHf99.84 (12% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-15%
Maximum Upside
+1%
Average Downside
9%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 14.3 CHf113.5
0%
3-Year Average 12.5 CHf99.84
-12%
5-Year Average 12.1 CHf95.96
-15%
Industry Average 14.4 CHf114.7
+1%
Country Average 13.1 CHf104.35
-8%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
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Market Distribution

In line with most companies in Switzerland
Percentile
53rd
Based on 939 companies
53rd percentile
14.3
Low
0 — 8.4
Typical Range
8.4 — 19.1
High
19.1 —
Distribution Statistics
Switzerland
Min 0
30th Percentile 8.4
Median 13.1
70th Percentile 19.1
Max 654.7

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 CHf113.5
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