Novo Nordisk AS (CHIX:NOVOBC) GF Value Rank : 7 (As of Dec. 11, 2024)

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What is Novo Nordisk AS GF Value Rank?

Novo Nordisk AS has the GF Value Rank of 7.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Novo Nordisk AS's GF Value Rank

For the Drug Manufacturers - General subindustry, Novo Nordisk AS's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Novo Nordisk AS's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Novo Nordisk AS's GF Value Rank falls into.

Novo Nordisk AS GF Value Rank Related Terms

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Novo Nordisk AS Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Novo Nordisk AS (CHIX:NOVOBc) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

NONOF:USA NVO:USA NOVOB:Mexico NVO:Mexico 0TDD:UK 0QIU:UK NOVO B:Denmark NOV:Germany NOV:Germany NOVA:Germany NOV:Germany NOV:Germany NOVA:Germany N1VO34:Brazil NOV:Bulgaria NNO2:Austria

Address

Novo Alle 1, Bagsvaerd, DNK, 2880

Website

https://www.novonordisk.com

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.

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