Novartis AGFRA:NOT +2.14%83 OCF Yield % is 6.52 as of Jun. 24, 2026, which is 16% below its 10-year median of 7.72. GuruFocus rates FRA:NOT with a GF Score™ of 83/100 and a GF Value™ of €109.77 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,005 Drug Manufacturers companies, Novartis AG ranks better than 66.87% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high operating cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Novartis AG OCF Yield % Related Terms
Novartis AG OCF Yield % Historical Data
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The historical data trend for Novartis AG's OCF Yield % 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 OCF Yield %, along with its competitors' market caps and OCF Yield % 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 OCF Yield % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's OCF Yield % distribution charts can be found below:
* The bar in red indicates where Novartis AG's OCF Yield % 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 OCF Yield % of 6.52 as of Jun. 24, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Novartis AG and its competitors. This is 16% below median its historical median of 7.72. Over the past decade, Novartis AG's OCF Yield % has ranged from 6.20 to 9.79. According to the industry distribution chart, Novartis AG ranks #333 out of 1005 companies in the Drug Manufacturers industry, placing it in the top 33.1%.
Is Novartis AG's OCF Yield % too high?
Novartis AG's current OCF Yield % of 6.52 is 16% below median its 10-year median of 7.72. Over the past 10 years, this metric has ranged from a low of 6.20 to a high of 9.79. The Drug Manufacturers industry median OCF Yield % is 3.54. Novartis AG's value of 6.52 is 84.2% above this industry median. Based on the distribution chart, Novartis AG ranks #333 out of 1005 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Novartis AG has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's OCF Yield % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #333 out of 1005 companies for OCF Yield %. This puts Novartis AG in the upper half of its industry. The industry median OCF Yield % is 3.54. Novartis AG's value of 6.52 is 84.2% above this benchmark. Historically, Novartis AG's own OCF Yield % has ranged from 6.20 to 9.79 over the past decade. While the company's 10-year median is 7.72 vs. the industry median of 3.54, 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 OCF Yield % for a Drug Manufacturers company?
The median OCF Yield % among Drug Manufacturers companies is 3.54, based on 1,005 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current OCF Yield % of 6.52 is 84.2% 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median OCF Yield % is 3.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current OCF Yield % is 6.52, which is 16% below median its own 10-year median of 7.72. 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 €109.77, compared to a current price of €131.52 — trading 19.8% above its estimated fair value. The current OCF Yield % is 6.52, which is 16% below median its 10-year median of 7.72 and 84.2% above the Drug Manufacturers industry median of 3.54. Novartis AG's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For Novartis AG (FRA:NOT), the current OCF Yield % is 6.52 as of Jun. 24, 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 €131.52 is trading 19.8% above its estimated GF Value™ of €109.77.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for FRA:NOT:
OCF Yield %: 6.52 (16% below median its 10-year median of 7.72)
GF Value™: €109.77 vs. price of €131.52 (19.8% above fair value)
Industry Position: 84.2% above the Drug Manufacturers median (#333 of 1005)
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.
83GF Score
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