Novartis AGXSWX:NOVNEE -0.52%80 PEG Ratio is 11.15 as of Jul. 07, 2026, which is 131% above its 10-year median of 4.82. GuruFocus rates XSWX:NOVNEE with a GF Score™ of 80/100 and a GF Value™ of CHF98.72. The stock has 7 warning signs investors should review. Among 349 Drug Manufacturers companies, Novartis AG ranks worse than 88.54% on this metric.
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 27.88. Novartis AG's 5-Year EBITDA growth rate is 2.50%. Therefore, Novartis AG's PEG Ratio for today is 11.15.
* 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:
XSWX:NOVNEE'
s PEG Ratio Range Over the Past 10 Years
Min: 0.53 Med: 4.82 Max: 23.64
Current: 8.97
During the past 13 years, Novartis AG's highest PEG Ratio was 23.64. The lowest was 0.53. And the median was 4.82.
XSWX:NOVNEE's PEG Ratio is ranked worse than 88.54% of 349
companies
in the Drug Manufacturers industry
Industry Median: 1.7
vs XSWX:NOVNEE: 8.97
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Novartis AG (XSWX:NOVNEE) 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
Novartis AG PEG Ratio Historical Data
* Premium members only.
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.
XSWX:NOVNEE vs LLY, JNJ, ABBV: PEG Ratio Comparison
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 PEG Ratio vs 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.
* 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 (XSWX:NOVNEE) has a PEG Ratio of 11.15 as of Jul. 07, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Novartis AG and its competitors. This is 131% above median its historical median of 4.82. Over the past decade, Novartis AG's PEG Ratio has ranged from 0.53 to 23.64. According to the industry distribution chart, Novartis AG ranks #309 out of 349 companies in the Drug Manufacturers industry, placing it in the top 88.5%.
Is Novartis AG's PEG Ratio too high?
Novartis AG's current PEG Ratio of 11.15 is 131% above median its 10-year median of 4.82. Over the past 10 years, this metric has ranged from a low of 0.53 to a high of 23.64. The Drug Manufacturers industry median PEG Ratio is 1.70. Novartis AG's value of 11.15 is 555.9% above this industry median. Based on the distribution chart, Novartis AG ranks #309 out of 349 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, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's PEG Ratio compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #309 out of 349 companies for PEG Ratio. This places Novartis AG in the lower half of its industry. The industry median PEG Ratio is 1.70. Novartis AG's value of 11.15 is 555.9% above this benchmark. Historically, Novartis AG's own PEG Ratio has ranged from 0.53 to 23.64 over the past decade. While the company's 10-year median is 4.82 vs. the industry median of 1.70, 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 PEG Ratio for a Drug Manufacturers company?
The median PEG Ratio among Drug Manufacturers companies is 1.70, based on 349 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current PEG Ratio of 11.15 is 555.9% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median PEG Ratio is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current PEG Ratio is 11.15, which is 131% above median its own 10-year median of 4.82. 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?
Novartis AG (XSWX:NOVNEE) has a current PEG Ratio of 11.15. The stock's GF Value™ is CHF98.72, compared to a current price of CHF119.30 — trading 20.8% above its estimated fair value. The current PEG Ratio is 11.15, which is 131% above median its 10-year median of 4.82 and 555.9% above the Drug Manufacturers industry median of 1.70. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Novartis AG (XSWX:NOVNEE), the current PEG Ratio is 11.15 as of Jul. 07, 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 (XSWX:NOVNEE) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued.
The current stock price of CHF119.30 is trading 20.8% above its estimated GF Value™ of CHF98.72.
Key valuation signals for XSWX:NOVNEE:
PEG Ratio: 11.15 (131% above median its 10-year median of 4.82)
GF Value™: CHF98.72 vs. price of CHF119.30 (20.8% above fair value)
Industry Position: 555.9% above the Drug Manufacturers median (#309 of 349)
No single metric tells the full story. See the XSWX:NOVNEE 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
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