EN DE

Novartis AG (NVSN) Fair Value & Analysis

Healthcare · MX · Market cap 5.2T MXN

NA Novartis AG NVSN · MX
Price2,742 MXN
Fair Value1,964 MXN
Upside-28.4%
Quality80/100
Watch Novartis AG for free, get notified when fair value or trend changes. Watch for free
Healthy Growth
Highly profitable · 23.9% net margin
Moderate debt · generates free cash flow
0.17% dividend yield
Wide moat 85/100
Evidence: High Range 1,328 MXN – 2,715 MXN Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from 2,379 MXN to 1,964 MXN (−17.4%) since Jul 12, 2026. Share price +5.4% over the past month.

A strong business, but screening 28% overvalued on our models.

What matters now

  • A high-quality business (quality 80/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • A fairly wide model range (1,328 MXN to 2,715 MXN) leaves room in how you read the outcome.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

2,867 MXN 1,283 MXN Fair Value 1,964 MXN Apr 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 1,283 MXN – 2,867 MXN · fair‑value band 1,328 MXN – 2,715 MXN · the 2,742 MXN price screens above the 1,964 MXN fair value. Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Novartis AG (NVSN) currently trades at 2,742 MXN, while our model-based Fair Value estimate is 1,964 MXN, implying the stock looks roughly 28.4% overvalued today. The Quality Score stands at 80/100 (high quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Novartis AG generated revenue of 56.6B MXN at a net margin of 23.9%. Revenue declined 0.7% year over year. It earns a return on equity of 34.9%. Net debt stands at 22.0B MXN. Fundamentals as of Aug 13, 2026

Our scenario range runs from 1,328 MXN (bear case) to 2,715 MXN (bull case); at 2,742 MXN, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 4% below its 52-week high and 31% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -16% fair-value upside, at -28%, NVSN screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (16.20 MXN to 161.23 MXN). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 80.96 MXN 114.89 MXN 171.40 MXN 80
Residual Income 47.92 MXN 60.73 MXN 296.36 MXN 76
Rev-Margin DCF 59.35 MXN 89.55 MXN 125.22 MXN 74
All 24 models by family
DCF Models
FCF DCF 77.39 MXN 112.26 MXN 174.21 MXN 38
Owner Earnings 78.32 MXN 113.57 MXN 176.19 MXN 31
5Y Revenue Exit 59.35 MXN 88.12 MXN 127.29 MXN 39
5Y EBITDA Exit 92.46 MXN 145.07 MXN 210.27 MXN 41
5Y P/E Exit 89.42 MXN 139.84 MXN 195.81 MXN 38
10Y Revenue Exit 63.44 MXN 90.20 MXN 121.02 MXN 36
10Y EBITDA Exit 86.14 MXN 128.91 MXN 178.68 MXN 37
10Y P/E Exit 84.22 MXN 125.35 MXN 168.63 MXN 35
Earnings-Based
Graham-Dodd 49.84 MXN 92.01 MXN 114.01 MXN 54
EPV 74.58 MXN 89.26 MXN 102.32 MXN 59
Dividend Discount
Gordon GGM 39.41 MXN 53.46 MXN 68.18 MXN 70
DDM Multi-Stage 39.41 MXN 55.21 MXN 74.85 MXN 61
Multiples
P/E Multiple 120.92 MXN 161.23 MXN 201.54 MXN 63
P/S Multiple 77.97 MXN 103.96 MXN 129.95 MXN 58
P/B Multiple 81.59 MXN 108.79 MXN 135.99 MXN 55
EV/EBIT 109.25 MXN 148.55 MXN 187.85 MXN 53
EV/EBITDA 117.75 MXN 159.88 MXN 202.01 MXN 54
EV/Revenue 53.73 MXN 80.46 MXN 107.19 MXN 43
Asset-Based
NCAV (Graham) 12.09 MXN 16.20 MXN 24.18 MXN 50
Growth DCF
Growth DCF 80.96 MXN 114.89 MXN 171.40 MXN 80
Rev-Margin DCF 59.35 MXN 89.55 MXN 125.22 MXN 74
Economic Profit
Residual Income 47.92 MXN 60.73 MXN 296.36 MXN 76
ROIC Compounder 76.59 MXN 94.39 MXN 112.35 MXN 72
Growth Earnings
Growth-Adj P/E 85.77 MXN 122.53 MXN 159.29 MXN 68

Widest divergence: Growth Earnings (122.53 MXN) versus Asset-Based (16.20 MXN). Highest evidence: Growth DCF (80).

Notify me when NVSN reaches fair value

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click.

Key figures & financial health

Revenue (TTM) 56.6B MXN
Revenue growth (YoY) -0.7%
Net margin 23.9%
Return on equity 34.9%
Free cash flow 15.2B MXN FY2025
P/E ratio 22.3
More key figures
Operating margin 30.5%
EPS (TTM) 123.21 MXN
Dividend yield 0.2%
EPS growth (YoY) -9.3%
Net debt 22.0B MXN FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 80/100

Of which business quality 77 · Market factors (momentum, volatility) 72

Profitability 75
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 83
Earnings quality: real cash, not paper profit
Fin. Strength 71
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 97
Calm price path (market factor)
Momentum 54
Price trend over the last 3–12 months (market factor)
52W Momentum 76
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Novartis AG researches, develops, manufactures, distributes, markets, and sells pharmaceutical medicines in Switzerland and internationally.

Full company description

Novartis AG researches, develops, manufactures, distributes, markets, and sells pharmaceutical medicines in Switzerland and internationally. The company offers Entresto, an angiotensin receptorneprilysin inhibitor to treat symptomatic chronic heart failure with reduced ejection fraction (HFrEF); Cosentyx to treat plaque psoriasis, pso riatic arthritis, ankylosing spondylitis, and nonradiographic axial spondy loarthritis; Kisqali, a selective oral cyclin dependent inhibitor of kinases 4 and 6 (CDK4/6); Promacta/Revolade to treat immune thrombocytopenia (ITP), thrombocytopenia, and patients with severe aplastic anemia (SAA); Tafinlar+Mekinist, an oral combination therapy to treat patients with certain types of cancers; and Jakavi for the treatment of myelofibrosis, polycythemia vera, and acute or chronic graftversushost disease (GvHD). It also provides Tasigna to treat philadelphia chromosomepositive chronic myeloid leukemia in the chronic and/or accelerated phase; Xolair for the treatment of allergic asthma and nasal polyps or severe chronic rhinosi nusitis with nasal polyps; Ilaris to treat fever syndromes, Still's disease, and acute gouty arthritis; Pluvicto to treat prostatespecific membrane anti genpositive metastatic castrationresistant prostate cancer; Sandostatin SC and Sandostatin LAR to treat acromegaly carcinoid tumors and other types of functional gastro intestinal and pancreatic neuroendocrine tumors; Zolgensma for the treatment of genetic root cause of spinal muscular atrophy; Lucentis; Leqvio to reduce LDL cholesterol; Lutathera; Scemblix; and Fabhalta. The company focuses on therapeutic areas, such as cardiovascular, renal and metabolic, immunology, neuroscience, oncology, and hematology. It has a license and collaboration agreement with Alnylam Pharmaceuticals, Inc. to develop, manufacture, and commercialize Leqvio (inclisiran), a therapy to reduce LDL cholesterol. Novartis AG was incorporated in 1996 and is headquartered in Basel, Switzerland.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Novartis AG reported revenue of 56.7B MXN in FY2025 versus 52.9B MXN in FY2021, a compound +1.7%/yr. Reported net income was 14.0B MXN in FY2025, compounding −12.7%/yr from FY2021.

Growth Quality 73/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
56.7B MXN
Latest YoY
+9.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.6%
Avg. growth/yr (11Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.5%
Revenue +1.7%/yr
FY21 52.9B MXN
FY22 51.8B MXN
FY23 46.7B MXN
FY24 51.7B MXN
FY25 56.7B MXN
Net income −12.7%/yr
FY21 24.0B MXN
FY22 7.0B MXN
FY23 14.9B MXN
FY24 11.9B MXN
FY25 14.0B MXN

NVSN screens 28% overvalued. Compare with Eli Lilly and Company →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "Novartis AG Fair Value". https://www.fairvalue-calculator.com/stock/NVSN

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Drug Manufacturers - General stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Eli Lilly and Company LLY $1,220 $389.47 -68%
Johnson & Johnson, JNJ $260.86 $169.04 -35%
AbbVie Inc ABBV $248.76 $67.72 -73%
Roche Holding 1RO €392.80 €240.14 -39%
Merck & Co MRK €115.42 €118.21 +2%
AstraZeneca PLC AZN $158.50 $127.32 -20%
Novo Nordisk A/S NOVOB kr 299.50 kr 409.46 +37%
Sanofi SNYN 770.00 MXN 1,041 MXN +35%
GSK plc GSKN 917.00 MXN 879.08 MXN -4%
Bayer Aktiengesellschaft BAYER 17,685 HUF 14,810 HUF -16%

Compare Novartis AG with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Healthcare stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued High-Quality StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is Novartis AG (NVSN) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 1,964 MXN versus a price of 2,742 MXN, about −28% (overvalued).
What is the fair value of NVSN?
Our model-based fair value for Novartis AG is 1,964 MXN (as of Aug 13, 2026), built from audited fundamentals. The current price is 2,742 MXN.
What is the quality score of NVSN?
Novartis AG has a Quality Score of 80/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Novartis AG (NVSN)?
Novartis AG reported trailing-twelve-month revenue of about 56.6B MXN (latest available figure, as of Aug 13, 2026).
What is the net profit margin of NVSN?
The net profit margin of Novartis AG is about 23.9%, meaning it keeps roughly 23.9% of revenue as net income. Based on the latest reported figures.
Does Novartis AG pay a dividend?
Novartis AG currently shows a dividend yield of about 0.19% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

14 days Pro free · no card

Track Novartis AG and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.