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GuruFocus has detected 1 Warning Sign with Novo Nordisk A/S $NVO.
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Novo Nordisk A/S (NYSE:NVO)
EV-to-EBITDA
13.47 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Novo Nordisk A/S's enterprise value is $104,063 Mil. Novo Nordisk A/S's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $7,724 Mil. Therefore, Novo Nordisk A/S's EV/EBITDA ratio for today is 13.47.

NVO' s EV-to-EBITDA Range Over the Past 10 Years
Min: 10.3   Max: 25.2
Current: 12.59

10.3
25.2

During the past 13 years, the highest EV/EBITDA Ratio of Novo Nordisk A/S was 25.20. The lowest was 10.30. And the median was 15.90.

NVO's EV-to-EBITDA is ranked higher than
63% of the 278 Companies
in the Global Biotechnology industry.

( Industry Median: 19.37 vs. NVO: 12.59 )

EV/EBITDA (Enterprise value/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 P/E Ratio to determine the fair market value of a company.

As of today, Novo Nordisk A/S's stock price is $41.90. Novo Nordisk A/S's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $2.25. Therefore, Novo Nordisk A/S's P/E Ratio for today is 18.63.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Novo Nordisk A/S's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=104062.510/7723.53091989
=13.47

Novo Nordisk A/S's current Enterprise Value is $104,063 Mil.
Novo Nordisk A/S's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 2013.44207824 (Jun. 2016 ) + 1981.17186323 (Sep. 2016 ) + 1650.50195678 (Dec. 2016 ) + 2078.41502164 (Mar. 2017 ) = $7,724 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/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 P/E Ratio to determine the fair market value of a company.

Novo Nordisk A/S's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=41.90/2.24931533681
=18.63

Novo Nordisk A/S's share price for today is $41.90.
Novo Nordisk A/S's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.592055580728 (Jun. 2016 ) + 0.582919114324 (Sep. 2016 ) + 0.49061312461 (Dec. 2016 ) + 0.583727517145 (Mar. 2017 ) = $2.25.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Novo Nordisk A/S Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 18.6312.8812.2013.5712.4114.5015.8219.7621.9412.31

Novo Nordisk A/S Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 19.7623.8621.1119.1221.9420.0919.8515.0412.3111.06
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