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Novartis AGFRA:NOT +2.89%81 EV-to-OCF is 18.46 as of Aug. 09, 2026, which is 28% above its 10-year median of 14.47. GuruFocus rates FRA:NOT with a GF Score™ of 81/100 and a GF Value™ of €115.81 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,006 Drug Manufacturers companies, Novartis AG ranks worse than 66.5% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Novartis AG's Enterprise Value is €291,949 Mil.
Novartis AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was €15,817 Mil. Therefore, Novartis AG's EV-to-OCF for today is 18.46.
The historical rank and industry rank for Novartis AG's EV-to-OCF or its related term are showing as below:
FRA:NOT'
s EV-to-OCF Range Over the Past 10 Years
Min: 11.4 Med: 14.47 Max: 19.01
Current: 18.68
During the past 13 years, the highest EV-to-OCF of Novartis AG was 19.01. The lowest was 11.40. And the median was 14.47.
FRA:NOT's EV-to-OCF is ranked worse than 66.5% of 1006
companies
in the Drug Manufacturers industry
Industry Median: 11.06
vs FRA:NOT: 18.68
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 €136.10.
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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Novartis AG EV-to-OCF Related Terms
Novartis AG EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Novartis AG's EV-to-OCF 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Novartis AG's EV-to-OCF falls into.
Novartis AG's current Enterprise Value is €291,949 Mil.
Novartis AG's Cash Flow from Operations 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 €15,817 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-OCF of 18.46 as of Aug. 09, 2026. This is 28% above median its historical median of 14.47. Over the past decade, Novartis AG's EV-to-OCF has ranged from 11.40 to 19.01. According to the industry distribution chart, Novartis AG ranks #669 out of 1006 companies in the Drug Manufacturers industry, placing it in the top 66.5%.
Is Novartis AG's EV-to-OCF too high?
Novartis AG's current EV-to-OCF of 18.46 is 28% above median its 10-year median of 14.47. Over the past 10 years, this metric has ranged from a low of 11.40 to a high of 19.01. The Drug Manufacturers industry median EV-to-OCF is 11.06. Novartis AG's value of 18.46 is 66.9% above this industry median. Based on the distribution chart, Novartis AG ranks #669 out of 1006 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Novartis AG has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's EV-to-OCF compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #669 out of 1006 companies for EV-to-OCF. This places Novartis AG in the lower half of its industry. The industry median EV-to-OCF is 11.06. Novartis AG's value of 18.46 is 66.9% above this benchmark. Historically, Novartis AG's own EV-to-OCF has ranged from 11.40 to 19.01 over the past decade. While the company's 10-year median is 14.47 vs. the industry median of 11.06, 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-OCF for a Drug Manufacturers company?
The median EV-to-OCF among Drug Manufacturers companies is 11.06, based on 1,006 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current EV-to-OCF of 18.46 is 66.9% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Drug Manufacturers industry, the median EV-to-OCF is 11.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current EV-to-OCF is 18.46, which is 28% above median its own 10-year median of 14.47. 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 €115.81, compared to a current price of €136.10 — trading 17.5% above its estimated fair value. The current EV-to-OCF is 18.46, which is 28% above median its 10-year median of 14.47 and 66.9% above the Drug Manufacturers industry median of 11.06. Novartis AG's overall GF Score™ is 81/100 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Novartis AG (FRA:NOT), the current EV-to-OCF is 18.46 as of Aug. 09, 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 €136.10 is trading 17.5% above its estimated GF Value™ of €115.81.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for FRA:NOT:
EV-to-OCF: 18.46 (28% above median its 10-year median of 14.47)
GF Value™: €115.81 vs. price of €136.10 (17.5% above fair value)
Industry Position: 66.9% above the Drug Manufacturers median (#669 of 1006)
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.
81GF Score
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