Switch to:
GuruFocus has detected 1 Warning Sign with Novo Nordisk A/S $NVO.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Novo Nordisk A/S (NYSE:NVO)
EV-to-EBITDA
12.85 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Novo Nordisk A/S's enterprise value is $87,767 Mil. Novo Nordisk A/S's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $6,830 Mil. Therefore, Novo Nordisk A/S's EV/EBITDA ratio for today is 12.85.

NVO' s EV-to-EBITDA Range Over the Past 10 Years
Min: 8.2   Max: 23.6
Current: 11.89

8.2
23.6

During the past 13 years, the highest EV/EBITDA Ratio of Novo Nordisk A/S was 23.60. The lowest was 8.20. And the median was 16.10.

NVO's EV-to-EBITDA is ranked higher than
60% of the 213 Companies
in the Global Biotechnology industry.

( Industry Median: 16.23 vs. NVO: 11.89 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Novo Nordisk A/S's stock price is $35.60. Novo Nordisk A/S's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $2.20. Therefore, Novo Nordisk A/S's P/E Ratio for today is 16.17.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Novo Nordisk A/S's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=87766.760/6830.39834535
=12.85

Novo Nordisk A/S's current Enterprise Value is $87,767 Mil.
Novo Nordisk A/S's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 901.648912885 (Dec. 2015 ) + 1934.135491 (Mar. 2016 ) + 2013.44207824 (Jun. 2016 ) + 1981.17186323 (Sep. 2016 ) = $6,830 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Novo Nordisk A/S's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=35.60/2.2016074089
=16.17

Novo Nordisk A/S's share price for today is $35.60.
Novo Nordisk A/S's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.472785641325 (Dec. 2015 ) + 0.553847072523 (Mar. 2016 ) + 0.592055580728 (Jun. 2016 ) + 0.582919114324 (Sep. 2016 ) = $2.20.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Novo Nordisk A/S Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 18.6312.6410.6313.5713.5215.0315.9917.9621.9412.16

Novo Nordisk A/S Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 20.1017.9622.3220.1518.7621.9420.0919.8515.0412.16
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK