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Novartis AGHAM:NOT -0.72%80 EV-to-EBITDA is 15.58 as of Jul. 30, 2026, which is 27% above its 10-year median of 12.28. GuruFocus rates HAM:NOT with a GF Score™ of 80/100 and a GF Value™ of €112.69 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 745 Drug Manufacturers companies, Novartis AG ranks worse than 60% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Novartis AG's enterprise value is €300,908 Mil.
Novartis AG's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 was €19,310 Mil. Therefore, Novartis AG's EV-to-EBITDA for today is 15.58.
The historical rank and industry rank for Novartis AG's EV-to-EBITDA or its related term are showing as below:
HAM:NOT'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 5.92 Med: 12.28 Max: 17.07
Current: 15.73
During the past 13 years, the highest EV-to-EBITDA of Novartis AG was 17.07. The lowest was 5.92. And the median was 12.28.
HAM:NOT's EV-to-EBITDA is ranked worse than 60% of 745
companies
in the Drug Manufacturers industry
Industry Median: 12.91
vs HAM:NOT: 15.73
EV-to-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 PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Novartis AG (HAM:NOT) EV-to-EBITDA Explanation
EV-to-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 PE Ratio (TTM) to determine the fair market value of a company.
Novartis AG's PE Ratio (TTM) for today is calculated as:
Novartis AG's share price for today is €138.52.
Novartis AG's Earnings per Share (Diluted) 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 €5.699.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Novartis AG's EV-to-EBITDA 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.
HAM:NOT vs LLY, JNJ, ABBV: EV-to-EBITDA Comparison
For the Drug Manufacturers - General subindustry, Novartis AG's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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-EBITDA vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Novartis AG's EV-to-EBITDA falls into.
Novartis AG's current Enterprise Value is €300,908 Mil.
Novartis AG's EBITDA 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 €19,310 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 (HAM:NOT) has a EV-to-EBITDA of 15.58 as of Jul. 30, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Novartis AG. This is 27% above median its historical median of 12.28. Over the past decade, Novartis AG's EV-to-EBITDA has ranged from 5.92 to 17.07. According to the industry distribution chart, Novartis AG ranks #447 out of 745 companies in the Drug Manufacturers industry, placing it in the top 60%.
Is Novartis AG's EV-to-EBITDA too high?
Novartis AG's current EV-to-EBITDA of 15.58 is 27% above median its 10-year median of 12.28. Over the past 10 years, this metric has ranged from a low of 5.92 to a high of 17.07. The Drug Manufacturers industry median EV-to-EBITDA is 12.91. Novartis AG's value of 15.58 is 20.7% above this industry median. Based on the distribution chart, Novartis AG ranks #447 out of 745 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-EBITDA compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #447 out of 745 companies for EV-to-EBITDA. This places Novartis AG in the lower half of its industry. The industry median EV-to-EBITDA is 12.91. Novartis AG's value of 15.58 is 20.7% above this benchmark. Historically, Novartis AG's own EV-to-EBITDA has ranged from 5.92 to 17.07 over the past decade. While the company's 10-year median is 12.28 vs. the industry median of 12.91, 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-EBITDA for a Drug Manufacturers company?
The median EV-to-EBITDA among Drug Manufacturers companies is 12.91, based on 745 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current EV-to-EBITDA of 15.58 is 20.7% 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 EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Novartis AG. For the Drug Manufacturers industry, the median EV-to-EBITDA is 12.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current EV-to-EBITDA is 15.58, which is 27% above median its own 10-year median of 12.28. 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 (HAM:NOT) is currently considered Modestly Overvalued. The stock's GF Value™ is €112.69, compared to a current price of €138.52 — trading 22.9% above its estimated fair value. The current EV-to-EBITDA is 15.58, which is 27% above median its 10-year median of 12.28 and 20.7% above the Drug Manufacturers industry median of 12.91. 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-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Novartis AG (HAM:NOT), the current EV-to-EBITDA is 15.58 as of Jul. 30, 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 (HAM:NOT) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued.
The current stock price of €138.52 is trading 22.9% above its estimated GF Value™ of €112.69.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for HAM:NOT:
EV-to-EBITDA: 15.58 (27% above median its 10-year median of 12.28)
GF Value™: €112.69 vs. price of €138.52 (22.9% above fair value)
Industry Position: 20.7% above the Drug Manufacturers median (#447 of 745)
No single metric tells the full story. See the HAM: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
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