Novartis AGFRA:NOT +2.14%83 PB Ratio is 7.53 as of Jun. 24, 2026, which is 116% above its 10-year median of 3.49. 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 922 Drug Manufacturers companies, Novartis AG ranks worse than 90.46% on this metric.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2026-06-24), Novartis AG's share price is €131.52. Novartis AG's Book Value per Share for the quarter that ended in Mar. 2026 was €17.46. Hence, Novartis AG's PB Ratio of today is 7.53.
Warning Sign:
Novartis AG stock PB Ratio (=7.77) is close to 10-year high of 7.77.
The historical rank and industry rank for Novartis AG's PB Ratio or its related term are showing as below:
FRA:NOT'
s PB Ratio Range Over the Past 10 Years
Min: 1.85 Med: 3.49 Max: 7.77
Current: 7.77
During the past 13 years, Novartis AG's highest PB Ratio was 7.77. The lowest was 1.85. And the median was 3.49.
FRA:NOT's PB Ratio is ranked worse than 90.46% of 922
companies
in the Drug Manufacturers industry
Industry Median: 1.88
vs FRA:NOT: 7.77
During the past 12 months, Novartis AG's average Book Value Per Share Growth Rate was -8.20% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was -9.60% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was -5.60% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was -5.60% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Novartis AG was 18.90% per year. The lowest was -11.00% per year. And the median was 2.60% per year.
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Novartis AG PB Ratio Related Terms
Novartis AG PB Ratio Historical Data
* Premium members only.
The historical data trend for Novartis AG's PB Ratio 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 PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's PB Ratio distribution charts can be found below:
* The bar in red indicates where Novartis AG's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
Novartis AG's PB Ratio for today is calculated as follows:
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Novartis AG (FRA:NOT) has a PB Ratio of 7.53 as of Jun. 24, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Novartis AG and its competitors. This is 116% above median its historical median of 3.49. Over the past decade, Novartis AG's PB Ratio has ranged from 1.85 to 7.77. According to the industry distribution chart, Novartis AG ranks #834 out of 922 companies in the Drug Manufacturers industry, placing it in the top 90.5%.
Is Novartis AG's PB Ratio too high?
Novartis AG's current PB Ratio of 7.53 is 116% above median its 10-year median of 3.49. Over the past 10 years, this metric has ranged from a low of 1.85 to a high of 7.77. The Drug Manufacturers industry median PB Ratio is 1.88. Novartis AG's value of 7.53 is 300.5% above this industry median. Based on the distribution chart, Novartis AG ranks #834 out of 922 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. 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 PB Ratio compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #834 out of 922 companies for PB Ratio. This places Novartis AG in the lower half of its industry. The industry median PB Ratio is 1.88. Novartis AG's value of 7.53 is 300.5% above this benchmark. Historically, Novartis AG's own PB Ratio has ranged from 1.85 to 7.77 over the past decade. While the company's 10-year median is 3.49 vs. the industry median of 1.88, 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 PB Ratio for a Drug Manufacturers company?
The median PB Ratio among Drug Manufacturers companies is 1.88, based on 922 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current PB Ratio of 7.53 is 300.5% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median PB Ratio is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current PB Ratio is 7.53, which is 116% above median its own 10-year median of 3.49. 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 PB Ratio is 7.53, which is 116% above median its 10-year median of 3.49 and 300.5% above the Drug Manufacturers industry median of 1.88. 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 PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Novartis AG (FRA:NOT), the current PB Ratio is 7.53 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:
PB Ratio: 7.53 (116% above median its 10-year median of 3.49)
GF Value™: €109.77 vs. price of €131.52 (19.8% above fair value)
Industry Position: 300.5% above the Drug Manufacturers median (#834 of 922)
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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