NVS
Novartis AG
$154.07
▲ 3.0%Updated Today 3:42 PM ET
NVS at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 67/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 27.5% over the last 12 months
Market Cap
$261.56B
P/E
20.75x
Forward P/E (est.)
18.99x
ROE
31.7%
Revenue Growth
5.8%
EPS Growth
9.3%
Profit Margin
24.1%
FCF Yield
4.2%
Debt / Equity
0.77x
ROIC
19.0%
Interest Coverage
15.42x
Current Ratio
1.12x
Dividend Yield
2.9%
Implied Growth (rev. DCF)
2.1%
Rating Score
67/100
Novartis AG (NVS) is a mega-cap company in the Pharmaceuticals industry, part of the Health Care sector of the S&P 500, with a market value around $261.56B.
In its latest reported year it generated about $54.53B in revenue and $13.98B in net profit.
Our model rates NVS Favorable (67/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
77.1% average over the last 3 years
±3.7 pts around 73.2% across 10 years
grew in 6 of the last 9 year-over-year periods
positive in 10 of 10 years
19.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what NVS's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. NVS trades near $154.07, above its 50-day average ($149.59) and 200-day average ($143.65). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 54 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. NVS's is $3.34 (~2.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month NVS found buyers near $146.39 (support) and sellers near $160.57 (resistance); its 52-week range is $112.34–$170.46. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.5× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
6.3%
Revenue moved from $48.52B in 2016 to $54.53B in 2025, a 1.3% compound annual growth rate. The most recent year grew a steady 5.8% year over year. Slower, mature growth is common for established businesses.
Gross Margin
78.8%
Operating Margin
32.4%
Net Margin
25.6%
ROE
31.7%
Novartis AG keeps about 24.1% of each sales dollar as net profit, with a 78.8% gross margin and 32.4% operating margin. Return on equity is 31.7% and return on invested capital about 19.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$28.73B
Net Debt
$17.29B
Net Debt / EBITDA
0.98x
Debt / Equity
0.77x
Leverage: debt-to-equity is 0.8x, and operating profit covers interest about 15.4x, with a current ratio of 1.1x. That is a moderate, manageable debt load for most businesses. It carries roughly $28.73B of total debt against $11.44B of cash.
Operating CF
$19.14B
Free Cash Flow
$17.60B
FCF Margin
32.3%
In the latest year Novartis AG produced about $19.14B of operating cash flow and $17.60B of free cash flow after capital spending. That is a free-cash-flow yield of about 4.2% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
2.9%
Total paid (latest FY)
$7.82B
History on record
10 years
dividend uses 44% of free cash flow
56% of net income paid out
total dividends increased 2 years in a row
no cuts in the last 10 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
20.75x
P/S
5.17x
P/B
5.43x
EV / EBITDA
—
NVS trades at 20.7x trailing earnings (about 19.0x on estimated forward earnings), 5.2x sales, and 5.4x book value. Reverse-engineering today's price implies the market expects roughly 2.1% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$174.96
Current price
$154.07
Starting FCF (latest 10-K)
$17.60B
Growth, years 1–5
5.8%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where NVS sits versus its Health Care sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 83 Health Care companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How NVS stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.
In the Health Care sector (324 S&P 500 companies), NVS ranks #14 of 324 by our overall rating. It trades at a discount versus the sector on earnings (20.7x P/E vs. 25.4x median) with a higher return on equity (31.7% vs. 14.1%) and slower revenue growth (5.8% vs. 7.6%).
P/E vs sector
20.7x
median 25.4x
ROE vs sector
31.7%
median 14.1%
Growth vs sector
5.8%
median 7.6%
Sector rank
#14
of 324 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 324 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $154.07 today · expected CAGR -1% – 9%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $57.80B | $61.27B | $64.95B | $68.85B | $72.98B |
| Net income | $15.03B | $15.93B | $16.89B | $17.90B | $18.97B |
| EPS | $8.85 | $9.38 | $9.95 | $10.54 | $11.18 |
| Share price (low) | $115.09 | $121.99 | $129.31 | $137.07 | $145.30 |
| Share price (high) | $185.91 | $197.07 | $208.89 | $221.42 | $234.71 |
| CAGR (low–high) | -25% / 21% | -11% / 13% | -6% / 11% | -3% / 9% | -1% / 9% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for NVS:
- High net margins (24.1%) point to pricing power or efficiency.
- Strong return on equity (31.7%) shows capital is put to work well.
- Healthy free-cash-flow yield (~4.2%) funds buybacks and dividends.
- Pays a 2.9% dividend on top of any price gains.
- Our model's overall read is Favorable (67/100).
The case against NVS:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Novartis AG is a mega-cap health care business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 20.7x earnings, which our model scores Favorable (67/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 34 Wall Street analysts covering NVS recommend (July 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+3 pts of buy ratings).
Latest SEC Filings
NVS's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
NVS — frequently asked questions
Is NVS a good stock to buy?
We don't give buy or sell advice. Our model rates Novartis AG Favorable (67/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is NVS's rating on The Stocks School?
Novartis AG currently scores 67/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does NVS's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Novartis AG's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for NVS calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this NVS analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell NVS. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.