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Novartis AGFRA:NOTA 81 Return-on-Tangible-Asset is 23.65% as of Mar. 2026, which is 35% above its 10-year median of 17.52. GuruFocus rates FRA:NOTA with a GF Score™ of 81/100 and a GF Value™ of €111.90 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,009 Drug Manufacturers companies, Novartis AG ranks better than 96.93% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Novartis AG's annualizedNet Income for the quarter that ended in Mar. 2026 was €10,920 Mil. Novartis AG's average total tangible assets for the quarter that ended in Mar. 2026 was €46,175 Mil. Therefore, Novartis AG's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 23.65%.
The historical rank and industry rank for Novartis AG's Return-on-Tangible-Asset or its related term are showing as below:
FRA:NOTA'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 10.14 Med: 17.52 Max: 37.88
Current: 25.83
During the past 13 years, Novartis AG's highest Return-on-Tangible-Asset was 37.88%. The lowest was 10.14%. And the median was 17.52%.
FRA:NOTA's Return-on-Tangible-Asset is ranked better than 96.93% of 1009
companies
in the Drug Manufacturers industry
Industry Median: 3.16
vs FRA:NOTA: 25.83
Novartis AG (FRA:NOTA) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Novartis AG Return-on-Tangible-Asset Related Terms
Novartis AG Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Novartis AG's Return-on-Tangible-Asset 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.
FRA:NOTA vs LLY, JNJ, ABBV: Return-on-Tangible-Asset Comparison
For the Drug Manufacturers - General subindustry, Novartis AG's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Novartis AG's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 23.65% mean?
Novartis AG (FRA:NOTA) has a Return-on-Tangible-Asset of 23.65% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Novartis AG and its competitors. This is 35% above median its historical median of 17.52. Over the past decade, Novartis AG's Return-on-Tangible-Asset has ranged from 10.14 to 37.88. According to the industry distribution chart, Novartis AG ranks #31 out of 1009 companies in the Drug Manufacturers industry, placing it in the top 3.1%.
Is Novartis AG's Return-on-Tangible-Asset too high?
Novartis AG's current Return-on-Tangible-Asset of 23.65% is 35% above median its 10-year median of 17.52. Over the past 10 years, this metric has ranged from a low of 10.14 to a high of 37.88. The Drug Manufacturers industry median Return-on-Tangible-Asset is 3.16. Novartis AG's value of 23.65% is 648.4% above this industry median. Based on the distribution chart, Novartis AG ranks #31 out of 1009 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Novartis AG has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's Return-on-Tangible-Asset compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #31 out of 1009 companies for Return-on-Tangible-Asset. This places Novartis AG in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.16. Novartis AG's value of 23.65% is 648.4% above this benchmark. Historically, Novartis AG's own Return-on-Tangible-Asset has ranged from 10.14 to 37.88 over the past decade. While the company's 10-year median is 17.52 vs. the industry median of 3.16, 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 Return-on-Tangible-Asset for a Drug Manufacturers company?
The median Return-on-Tangible-Asset among Drug Manufacturers companies is 3.16, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current Return-on-Tangible-Asset of 23.65% is 648.4% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Asset is 3.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current Return-on-Tangible-Asset is 23.65%, which is 35% above median its own 10-year median of 17.52. 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:NOTA) is currently considered Modestly Overvalued. The stock's GF Value™ is €111.90, compared to a current price of €134.00 — trading 19.7% above its estimated fair value. The current Return-on-Tangible-Asset is 23.65%, which is 35% above median its 10-year median of 17.52 and 648.4% above the Drug Manufacturers industry median of 3.16. Novartis AG's overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Novartis AG (FRA:NOTA), the current Return-on-Tangible-Asset is 23.65% as of Mar. 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:NOTA) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued.
The current stock price of €134.00 is trading 19.7% above its estimated GF Value™ of €111.90.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for FRA:NOTA:
Return-on-Tangible-Asset: 23.65% (35% above median its 10-year median of 17.52)
GF Value™: €111.90 vs. price of €134.00 (19.7% above fair value)
Industry Position: 648.4% above the Drug Manufacturers median (#31 of 1009)
No single metric tells the full story. See the FRA:NOTA 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.
81GF Score
Get the complete analysis for FRA:NOTA
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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