Natco Pharma (NSE:NATCOPHARM) EV-to-EBIT: 10.86 (As of Sep. 22, 2026) — 30% Below Median

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NSE:NATCOPHARM Natco Pharma Ltd NSE:NATCOPHARM
88 GF Score
Price ₹816.30
GF Value ₹815.79
Valuation Fairly Valued
! 2 Warning Signs
View Full Analysis

What is Natco Pharma EV-to-EBIT?

Natco Pharma NSE:NATCOPHARM -0.59% 88 EV-to-EBIT is 10.86 as of Sep. 22, 2026, which is 30% below its 10-year median of 15.58. GuruFocus rates NSE:NATCOPHARM with a GF Score™ of 88/100 and a GF Value™ of ₹815.79 (Fairly Valued). The stock has 2 warning signs investors should review. Among 682 Drug Manufacturers companies, Natco Pharma ranks better than 68.04% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Natco Pharma's Enterprise Value is ₹125,036 Mil. Natco Pharma's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was ₹11,510 Mil. Therefore, Natco Pharma's EV-to-EBIT for today is 10.86.

The historical rank and industry rank for Natco Pharma's EV-to-EBIT or its related term are showing as below:

NSE:NATCOPHARM' s EV-to-EBIT Range Over the Past 10 Years
Min: 4.91   Med: 15.58   Max: 69.32
Current: 10.86

During the past 13 years, the highest EV-to-EBIT of Natco Pharma was 69.32. The lowest was 4.91. And the median was 15.58.

NSE:NATCOPHARM's EV-to-EBIT is ranked better than
68.04% of 682 companies
in the Drug Manufacturers industry
Industry Median: 16.08 vs NSE:NATCOPHARM: 10.86

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Natco Pharma's Enterprise Value for the quarter that ended in Jun. 2026 was ₹166,904 Mil. Natco Pharma's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was ₹11,510 Mil. Natco Pharma's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 6.90%.


Natco Pharma  (NSE:NATCOPHARM) EV-to-EBIT Explanation

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.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

Natco Pharma's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Jun. 2026 ) =EBIT / Enterprise Value (Q: Jun. 2026 )
=11510/166903.5323595
=6.90 %

Natco Pharma's Enterprise Value for the quarter that ended in Jun. 2026 was ₹166,904 Mil.
Natco Pharma'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 ₹11,510 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.


Natco Pharma EV-to-EBIT Related Terms


Natco Pharma EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for Natco Pharma'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.

Natco Pharma EV-to-EBIT Chart

Natco Pharma Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 61.24 10.65 9.26 5.09 10.07

Natco Pharma Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
EV-to-EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.98 6.00 8.57 10.07 14.50

NSE:NATCOPHARM vs ZTS: EV-to-EBIT Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Natco Pharma'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.


Natco Pharma EV-to-EBIT vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Natco Pharma's EV-to-EBIT falls into.


NSE:NATCOPHARM
88GF Score
Natco Pharma Ltd NSE:NATCOPHARM
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Natco Pharma EV-to-EBIT Calculation

Natco Pharma's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=125035.523/11510
=10.86

Natco Pharma's current Enterprise Value is ₹125,036 Mil.
Natco Pharma'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 ₹11,510 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.

Frequently Asked Questions Learn more about EV-to-EBIT →
What does a EV-to-EBIT of 10.86 mean?
Natco Pharma (NSE:NATCOPHARM) has a EV-to-EBIT of 10.86 as of Sep. 22, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Natco Pharma and its competitors. This is 30% below median its historical median of 15.58. Over the past decade, Natco Pharma's EV-to-EBIT has ranged from 4.91 to 69.32. According to the industry distribution chart, Natco Pharma ranks #218 out of 682 companies in the Drug Manufacturers industry, placing it in the top 32%.
Is Natco Pharma's EV-to-EBIT too high?
Natco Pharma's current EV-to-EBIT of 10.86 is 30% below median its 10-year median of 15.58. Over the past 10 years, this metric has ranged from a low of 4.91 to a high of 69.32. The Drug Manufacturers industry median EV-to-EBIT is 16.08. Natco Pharma's value of 10.86 is 32.5% below this industry median. Based on the distribution chart, Natco Pharma ranks #218 out of 682 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Natco Pharma has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's EV-to-EBIT compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #218 out of 682 companies for EV-to-EBIT. This puts Natco Pharma in the upper half of its industry. The industry median EV-to-EBIT is 16.08. Natco Pharma's value of 10.86 is 32.5% below this benchmark. Historically, Natco Pharma's own EV-to-EBIT has ranged from 4.91 to 69.32 over the past decade. While the company's 10-year median is 15.58 vs. the industry median of 16.08, Natco Pharma has consistently been below 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 16.08, based on 682 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. Natco Pharma's current EV-to-EBIT of 10.86 is 32.5% below 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 Natco Pharma and its competitors. For the Drug Manufacturers industry, the median EV-to-EBIT is 16.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natco Pharma's current EV-to-EBIT is 10.86, which is 30% below median its own 10-year median of 15.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natco Pharma stock overvalued right now?
Based on GuruFocus' analysis, Natco Pharma (NSE:NATCOPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹815.79, compared to a current price of ₹816.30 — trading 0.1% above its estimated fair value. The current EV-to-EBIT is 10.86, which is 30% below median its 10-year median of 15.58 and 32.5% below the Drug Manufacturers industry median of 16.08. Natco Pharma's overall GF Score™ is 88/100 with 2 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 Natco Pharma (NSE:NATCOPHARM), the current EV-to-EBIT is 10.86 as of Sep. 22, 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 Natco Pharma (NSE:NATCOPHARM) Overvalued in 2026?

Based on GuruFocus' analysis, Natco Pharma stock appears to be overvalued. The current stock price of ₹816.30 is trading 0.1% above its estimated GF Value™ of ₹815.79. GuruFocus considers Natco Pharma to be Fairly Valued.

Key valuation signals for NSE:NATCOPHARM:

  • EV-to-EBIT: 10.86 (30% below median its 10-year median of 15.58)
  • GF Value™: ₹815.79 vs. price of ₹816.30 (0.1% above fair value)
  • GF Score™: 88/100 with 2 warning signs
  • Industry Position: 32.5% below the Drug Manufacturers median (#218 of 682)

No single metric tells the full story. See the NSE:NATCOPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Natco Pharma Business Description

Other Exchanges 524816:India
Address Road No. 2, NATCO House, Banjara Hills, Hyderabad, TG, IND, 500034
Natco Pharma Ltd is a drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. It derives maximum revenue from Pharmaceuticals Segment.
88GF Score

Get the complete analysis for NSE:NATCOPHARM

EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹816.30
Price
₹815.79
GF Value