The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Novo Nordisk AS's share price is €100.56.
Novo Nordisk AS's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was €8.12. Hence, Novo Nordisk AS's PS Ratio for today is 12.38.
Good Sign:
Novo Nordisk AS stock PS Ratio (=12.45) is close to 2-year low of 11.74
The historical rank and industry rank for Novo Nordisk AS's PS Ratio or its related term are showing as below:
XTER:NOV'
s PS Ratio Range Over the Past 10 Years
Min: 5.16 Med: 8.44 Max: 18.46
Current: 12.45
During the past 13 years, Novo Nordisk AS's highest PS Ratio was 18.46. The lowest was 5.16. And the median was 8.44.
XTER:NOV's PS Ratio is ranked worse than 90.76% of 974
companies
in the Drug Manufacturers industry
Industry Median: 2.34
vs XTER:NOV: 12.45
Novo Nordisk AS has shown predictable revenue and earnings growth.
During the past 12 months, the average Revenue per Share Growth Rate of Novo Nordisk AS was 27.20% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 24.00% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 16.70% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 10.60% per year.
During the past 13 years, Novo Nordisk AS's highest 3-Year average Revenue per Share Growth Rate was 127.90% per year. The lowest was -46.20% per year. And the median was 10.40% per year.
Back to Basics: PS Ratio
Novo Nordisk AS PS Ratio Historical Data
The historical data trend for Novo Nordisk AS's PS 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.
Competitive Comparison of Novo Nordisk AS's PS Ratio
For the Drug Manufacturers - General subindustry, Novo Nordisk AS's PS Ratio, along with its competitors' market caps and PS 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.
Novo Nordisk AS's PS Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novo Nordisk AS's PS Ratio distribution charts can be found below:
* The bar in red indicates where Novo Nordisk AS's PS Ratio falls into.
Novo Nordisk AS PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Novo Nordisk AS's Share Price of today is €100.56. Novo Nordisk AS's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €8.12.
* 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:
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Novo Nordisk AS PS Ratio Related Terms
Thank you for viewing the detailed overview of Novo Nordisk AS's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
With roughly one third of the global branded diabetes treatment market, Novo Nordisk is the leading provider of diabetes-care products in the world. Based in Denmark, the company manufactures and markets a variety of human and modern insulins, injectable diabetes treatments such as GLP-1 therapy, oral antidiabetic agents, and obesity treatments. Novo also has a biopharmaceutical segment (constituting roughly 10% of revenue) that specializes in protein therapies for hemophilia and other disorders.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
XTER:NOV has been successfully added to your 