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 -0.70%80 EV-to-EBIT is 20.36 as of Jul. 27, 2026, which is 4% above its 10-year median of 19.57. GuruFocus rates FRA:NOT with a GF Score™ of 80/100 and a GF Value™ of €113.35 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 690 Drug Manufacturers companies, Novartis AG ranks worse than 59.42% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
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 adds up the quarterly data reported by the company within the most recent 12 months, which was €14,546 Mil.
* 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 EV-to-EBIT Related Terms
Novartis AG EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for Novartis AG's EV-to-EBIT 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.
For the Drug Manufacturers - General subindustry, Novartis AG's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Novartis AG's EV-to-EBIT falls into.
Novartis AG's current Enterprise Value is €296,184 Mil.
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.
* 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 EV-to-EBIT of 20.36 as of Jul. 27, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Novartis AG and its competitors. This is near median its historical median of 19.57. Over the past decade, Novartis AG's EV-to-EBIT has ranged from 7.22 to 25.09. According to the industry distribution chart, Novartis AG ranks #410 out of 690 companies in the Drug Manufacturers industry, placing it in the top 59.4%.
Is Novartis AG's EV-to-EBIT too high?
Novartis AG's current EV-to-EBIT of 20.36 is near median its 10-year median of 19.57. Over the past 10 years, this metric has ranged from a low of 7.22 to a high of 25.09. The Drug Manufacturers industry median EV-to-EBIT is 15.50. Novartis AG's value of 20.36 is 31.4% above this industry median. Based on the distribution chart, Novartis AG ranks #410 out of 690 companies in the Drug Manufacturers industry, which is below 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 EV-to-EBIT compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #410 out of 690 companies for EV-to-EBIT. This places Novartis AG in the lower half of its industry. The industry median EV-to-EBIT is 15.50. Novartis AG's value of 20.36 is 31.4% above this benchmark. Historically, Novartis AG's own EV-to-EBIT has ranged from 7.22 to 25.09 over the past decade. While the company's 10-year median is 19.57 vs. the industry median of 15.50, 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 EV-to-EBIT for a Drug Manufacturers company?
The median EV-to-EBIT among Drug Manufacturers companies is 15.50, based on 690 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current EV-to-EBIT of 20.36 is 31.4% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median EV-to-EBIT is 15.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current EV-to-EBIT is 20.36, which is near median its own 10-year median of 19.57. 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 €113.35, compared to a current price of €137.02 — trading 20.9% above its estimated fair value. The current EV-to-EBIT is 20.36, which is near median its 10-year median of 19.57 and 31.4% above the Drug Manufacturers industry median of 15.50. Novartis AG's overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Novartis AG (FRA:NOT), the current EV-to-EBIT is 20.36 as of Jul. 27, 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 €137.02 is trading 20.9% above its estimated GF Value™ of €113.35.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for FRA:NOT:
EV-to-EBIT: 20.36 (near median its 10-year median of 19.57)
GF Value™: €113.35 vs. price of €137.02 (20.9% above fair value)
Industry Position: 31.4% above the Drug Manufacturers median (#410 of 690)
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
EV-to-EBIT 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 
