Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Novartis AGFRA:NOT -1.09%80 Earnings Yield (Joel Greenblatt) % is 4.91% as of Jun. 2026, which is 4% below its 10-year median of 5.11. GuruFocus rates FRA:NOT with a GF Score™ of 80/100 and a GF Value™ of €114.07 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,010 Drug Manufacturers companies, Novartis AG ranks better than 61.49% on this metric.
Novartis AG's Enterprise Value for the quarter that ended in Jun. 2026 was €298,823 Mil.
Novartis AG's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was €14,546 Mil. Novartis AG's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 4.91%.
The historical rank and industry rank for Novartis AG's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
FRA:NOT'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.99 Med: 5.11 Max: 13.84
Current: 5.06
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Novartis AG was 13.84%. The lowest was 3.99%. And the median was 5.11%.
FRA:NOT's Earnings Yield (Joel Greenblatt) % is ranked better than 61.49% of 1010
companies
in the Drug Manufacturers industry
Industry Median: 3.325
vs FRA:NOT: 5.06
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Novartis AG's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was 4.45%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Novartis AG (FRA:NOT) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Novartis AG Earnings Yield (Joel Greenblatt) % Related Terms
Novartis AG Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Novartis AG's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Novartis AG Earnings Yield (Joel Greenblatt) % Chart
For the Drug Manufacturers - General subindustry, Novartis AG's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Novartis AG Earnings Yield (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Novartis AG's Earnings Yield (Joel Greenblatt) % falls into.
Novartis AG Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Novartis AGs Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
Novartis AG's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €14,546 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 4.91% mean?
Novartis AG (FRA:NOT) has a Earnings Yield (Joel Greenblatt) % of 4.91% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Novartis AG and its competitors. This is near median its historical median of 5.11. Over the past decade, Novartis AG's Earnings Yield (Joel Greenblatt) % has ranged from 3.99 to 13.84. According to the industry distribution chart, Novartis AG ranks #389 out of 1010 companies in the Drug Manufacturers industry, placing it in the top 38.5%.
Is Novartis AG's Earnings Yield (Joel Greenblatt) % too high?
Novartis AG's current Earnings Yield (Joel Greenblatt) % of 4.91% is near median its 10-year median of 5.11. Over the past 10 years, this metric has ranged from a low of 3.99 to a high of 13.84. The Drug Manufacturers industry median Earnings Yield (Joel Greenblatt) % is 3.33. Novartis AG's value of 4.91% is 47.7% above this industry median. Based on the distribution chart, Novartis AG ranks #389 out of 1010 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Novartis AG has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's Earnings Yield (Joel Greenblatt) % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #389 out of 1010 companies for Earnings Yield (Joel Greenblatt) %. This puts Novartis AG in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 3.33. Novartis AG's value of 4.91% is 47.7% above this benchmark. Historically, Novartis AG's own Earnings Yield (Joel Greenblatt) % has ranged from 3.99 to 13.84 over the past decade. While the company's 10-year median is 5.11 vs. the industry median of 3.33, Novartis AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Drug Manufacturers company?
The median Earnings Yield (Joel Greenblatt) % among Drug Manufacturers companies is 3.33, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current Earnings Yield (Joel Greenblatt) % of 4.91% is 47.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median Earnings Yield (Joel Greenblatt) % is 3.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current Earnings Yield (Joel Greenblatt) % is 4.91%, which is near median its own 10-year median of 5.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novartis AG stock overvalued right now?
Based on GuruFocus' analysis, Novartis AG (FRA:NOT) is currently considered Modestly Overvalued. The stock's GF Value™ is €114.07, compared to a current price of €134.52 — trading 17.9% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 4.91%, which is near median its 10-year median of 5.11 and 47.7% above the Drug Manufacturers industry median of 3.33. Novartis AG's overall GF Score™ is 80/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Novartis AG (FRA:NOT), the current Earnings Yield (Joel Greenblatt) % is 4.91% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Novartis AG (FRA:NOT) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued.
The current stock price of €134.52 is trading 17.9% above its estimated GF Value™ of €114.07.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for FRA:NOT:
Earnings Yield (Joel Greenblatt) %: 4.91% (near median its 10-year median of 5.11)
GF Value™: €114.07 vs. price of €134.52 (17.9% above fair value)
Industry Position: 47.7% above the Drug Manufacturers median (#389 of 1010)
No single metric tells the full story. See the FRA:NOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Novartis develops and manufactures innovative drugs. Key areas of drug development are oncology, immunology, neuroscience, respiratory, and cardiovascular, renal, and metabolic. It also has an established medicines business, which includes off-patent franchises. The company sells its products globally, with the United States constituting close to one-third of total revenue.
80GF Score
Get the complete analysis for FRA:NOT
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:NOT has been successfully added to your 
