Novartis

Valuation Analysis

About the Company

Novartis en bref

Novartis (NOVN.SW) is currently trading at 118,04 CHF with a market capitalization of 196,3 Md €. The trailing P/E ratio stands at 21.31x, with a forward P/E of 15.28x. The 52-week range spans from 91,20 CHF to 131,00 CHF ; the current price is 9.9% below the yearly high. Year-over-year revenue growth stands at -0.7%. The net profit margin stands at 23.92%.

💰 Dividende

Novartis pays an annual dividend of 3,70 CHF per share, representing a yield of 3.13%. The payout ratio stands at 66.26%.

📊 Avis des analystes

21 analystes évaluent Novartis (NOVN.SW) au consensus : Conserver. L'objectif de cours moyen est de 124,65 CHF , soit un potentiel de +5.6% par rapport au cours actuel. La fourchette des objectifs de cours des analystes va de 97,44 CHF à 143,59 CHF .

Novartis : la thèse d'investissement en détail

Novartis (NOVN.SW) operates in the Healthcare — specifically Drug Manufacturers - General — and is headquartered in Switzerland. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

Le scénario haussier

With a gross margin near 75.55%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 34.93% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Free cash flow is positive and net margins stand at 23.92%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

Le scénario baissier

Revenue is contracting at -0.7% year-over-year — until that trend reverses, valuation is exposed to further downgrades.

Valorisation en contexte

At a PEG of 4.09, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

À surveiller

• The forward P/E of 15.28x is meaningfully below the trailing 21.31x — analysts expect earnings to step up; the next earnings release is the test.
• The dividend yield near 3.13% combined with a payout ratio of 66.26% leaves room for further hikes — a track record of consecutive raises is a strong income signal.

Thèse d'investissement : forces et faiblesses

Aperçu technique

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Profil de risque

The data points to relatively defensive market behavior, higher leverage relative to equity.

Trading Data

💵 Dividend Info

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