Novartis AGFRA:NOT +2.14%83 EBITDA Margin % is 40.00% as of Mar. 2026, which is 9% above its 10-year median of 36.81. GuruFocus rates FRA:NOT with a GF Score™ of 83/100 and a GF Value™ of €109.77 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 955 Drug Manufacturers companies, Novartis AG ranks better than 93.3% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. Novartis AG's EBITDA for the
three
months ended in Mar. 2026 was €4,680 Mil. Novartis AG's Revenue for the
three
months ended in Mar. 2026 was €11,698 Mil. Therefore, Novartis AG's EBITDA margin for the quarter that ended in Mar. 2026 was 40.00%.
Novartis AG (FRA:NOT) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Novartis AG EBITDA Margin % Related Terms
Novartis AG EBITDA Margin % Historical Data
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The historical data trend for Novartis AG's EBITDA Margin % 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.
FRA:NOT vs LLY, JNJ, ABBV: EBITDA Margin % Comparison
For the Drug Manufacturers - General subindustry, Novartis AG's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Novartis AG's EBITDA Margin % falls into.
* 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 (FRA:NOT) has a EBITDA Margin % of 40.00% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Novartis AG and its competitors. This is near median its historical median of 36.81. Over the past decade, Novartis AG's EBITDA Margin % has ranged from 29.47 to 70.30. According to the industry distribution chart, Novartis AG ranks #64 out of 955 companies in the Drug Manufacturers industry, placing it in the top 6.7%.
Is Novartis AG's EBITDA Margin % too high?
Novartis AG's current EBITDA Margin % of 40.00% is near median its 10-year median of 36.81. Over the past 10 years, this metric has ranged from a low of 29.47 to a high of 70.30. The Drug Manufacturers industry median EBITDA Margin % is 12.39. Novartis AG's value of 40.00% is 222.8% above this industry median. Based on the distribution chart, Novartis AG ranks #64 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Novartis AG has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's EBITDA Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #64 out of 955 companies for EBITDA Margin %. This places Novartis AG in the top 7% of its industry — outperforming the majority of peers. The industry median EBITDA Margin % is 12.39. Novartis AG's value of 40.00% is 222.8% above this benchmark. Historically, Novartis AG's own EBITDA Margin % has ranged from 29.47 to 70.30 over the past decade. While the company's 10-year median is 36.81 vs. the industry median of 12.39, 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 EBITDA Margin % for a Drug Manufacturers company?
The median EBITDA Margin % among Drug Manufacturers companies is 12.39, based on 955 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current EBITDA Margin % of 40.00% is 222.8% 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 EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median EBITDA Margin % is 12.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current EBITDA Margin % is 40.00%, which is near median its own 10-year median of 36.81. 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 €109.77, compared to a current price of €131.52 — trading 19.8% above its estimated fair value. The current EBITDA Margin % is 40.00%, which is near median its 10-year median of 36.81 and 222.8% above the Drug Manufacturers industry median of 12.39. Novartis AG's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Novartis AG (FRA:NOT), the current EBITDA Margin % is 40.00% as of Mar. 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 €131.52 is trading 19.8% above its estimated GF Value™ of €109.77.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for FRA:NOT:
EBITDA Margin %: 40.00% (near median its 10-year median of 36.81)
GF Value™: €109.77 vs. price of €131.52 (19.8% above fair value)
Industry Position: 222.8% above the Drug Manufacturers median (#64 of 955)
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.
83GF Score
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EBITDA Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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