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.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
As of today (2026-07-19), the stock price of Novartis AG is €135.20. Novartis AG's graham number for the quarter that ended in Mar. 2026 was €N/A. Therefore, Novartis AG's Price to Graham Number ratio for today is N/A.
The historical rank and industry rank for Novartis AG's Graham Number or its related term are showing as below:
During the past 13 years, the highest Price to Graham Number ratio of Novartis AG was 39.41. The lowest was 3.41. And the median was 4.86.
FRA:NOT's Price-to-Graham-Number is not ranked *
in the Drug Manufacturers industry.
Industry Median: 1.525 * Ranked among companies with meaningful Price-to-Graham-Number only.
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Novartis AG (FRA:NOT) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Novartis AG's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
135.20
/
N/A
=
N/A
* 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.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Novartis AG Graham Number Related Terms
Novartis AG Graham Number Historical Data
* Premium members only.
The historical data trend for Novartis AG's Graham Number 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.
FRA:NOT vs LLY, JNJ, ABBV: Graham Number Comparison
For the Drug Manufacturers - General subindustry, Novartis AG's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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 Price-to-Graham-Number vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Novartis AG's Price-to-Graham-Number falls into.
* 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 Graham Number of €N/A as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Novartis AG and its competitors. Over the past decade, Novartis AG's Graham Number has ranged from 3.41 to 39.41. According to the industry distribution chart, Novartis AG ranks #999999 out of 604 companies in the Drug Manufacturers industry.
Is Novartis AG's Graham Number too high?
Novartis AG's current Graham Number is €N/A. Over the past 10 years, this metric has ranged from a low of 3.41 to a high of 39.41. Based on the distribution chart, Novartis AG ranks #999999 out of 604 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. 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 Graham Number compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #999999 out of 604 companies for Graham Number. This places Novartis AG in the lower half of its industry. The industry median Graham Number is 1.53. Historically, Novartis AG's own Graham Number has ranged from 3.41 to 39.41 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a Drug Manufacturers company?
The median Graham Number among Drug Manufacturers companies is 1.53, based on 604 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median Graham Number is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current Graham Number is €N/A. 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 €112.02, compared to a current price of €135.20 — trading 20.7% above its estimated fair value. The current Graham Number is €N/A. 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 Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Novartis AG (FRA:NOT), the current Graham Number is €N/A as of Mar. 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 €135.20 is trading 20.7% above its estimated GF Value™ of €112.02.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for FRA:NOT:
Graham Number: €N/A
GF Value™: €112.02 vs. price of €135.20 (20.7% above fair value)
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
Graham Number 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 
