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Novartis AG (BSP:N1VS34) PEG Ratio : 5.46 (As of Mar. 03, 2025)


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What is Novartis AG PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Novartis AG's PE Ratio without NRI is 19.67. Novartis AG's 5-Year EBITDA growth rate is 3.60%. Therefore, Novartis AG's PEG Ratio for today is 5.46.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Novartis AG's PEG Ratio or its related term are showing as below:

BSP:N1VS34' s PEG Ratio Range Over the Past 10 Years
Min: 0.53   Med: 4.28   Max: 9.69
Current: 5.24


During the past 13 years, Novartis AG's highest PEG Ratio was 9.69. The lowest was 0.53. And the median was 4.28.


BSP:N1VS34's PEG Ratio is ranked worse than
83.75% of 363 companies
in the Drug Manufacturers industry
Industry Median: 1.67 vs BSP:N1VS34: 5.24

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Novartis AG PEG Ratio Historical Data

The historical data trend for Novartis AG's PEG 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.

* Premium members only.

Novartis AG PEG Ratio Chart

Novartis AG Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.65 0.82 2.80 5.38 4.74

Novartis AG Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
PEG Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.38 4.82 4.14 4.55 4.74

Competitive Comparison of Novartis AG's PEG Ratio

For the Drug Manufacturers - General subindustry, Novartis AG's PEG Ratio, along with its competitors' market caps and PEG 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's PEG Ratio Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Novartis AG's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Novartis AG's PEG Ratio falls into.



Novartis AG PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Novartis AG's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=19.666357738647/3.60
=5.46

* 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.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Novartis AG  (BSP:N1VS34) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Novartis AG PEG Ratio Related Terms

Thank you for viewing the detailed overview of Novartis AG's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Novartis AG Business Description

Address
Lichtstrasse 35, Basel, CHE, 4056
Novartis develops and manufactures innovative drugs. The firm's key areas of drug development include oncology, rare diseases, neuroscience, immunology, respiratory, cardio-metabolic, and established medicines. The company sells its products globally, with the United States comprising close to one third of total revenue.

Novartis AG Headlines

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