Novartis AGFRA:NOT0 83 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates FRA:NOT0 with a GF Score™ of 83/100 and a GF Value™ of €15.09 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 898 Drug Manufacturers companies, Novartis AG ranks better than 99.89% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Novartis AG's annualized net income for the quarter that ended in Mar. 2026 was €10,920 Mil. Novartis AG's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €-16,111 Mil. Therefore, Novartis AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Novartis AG's Return-on-Tangible-Equity or its related term are showing as below:
FRA:NOT0'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 56.19 Med: 148.71 Max: 623.52
Current: Negative Tangible Equity
During the past 13 years, Novartis AG's highest Return-on-Tangible-Equity was 623.52%. The lowest was 56.19%. And the median was 148.71%.
FRA:NOT0's Return-on-Tangible-Equity is ranked better than 99.89% of 898
companies
in the Drug Manufacturers industry
Industry Median: 7.88
vs FRA:NOT0: Negative Tangible Equity
Novartis AG (FRA:NOT0) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Novartis AG Return-on-Tangible-Equity Related Terms
Novartis AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Novartis AG's Return-on-Tangible-Equity 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:NOT0 vs LLY, JNJ, ABBV: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - General subindustry, Novartis AG's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Novartis AG's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Novartis AG (FRA:NOT0) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Novartis AG and its competitors. Over the past decade, Novartis AG's Return-on-Tangible-Equity has ranged from 56.19 to 623.52. According to the industry distribution chart, Novartis AG ranks #1 out of 898 companies in the Drug Manufacturers industry, placing it in the top 0.099999999999994%.
Is Novartis AG's Return-on-Tangible-Equity too high?
Novartis AG's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 56.19 to a high of 623.52. Based on the distribution chart, Novartis AG ranks #1 out of 898 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 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's Return-on-Tangible-Equity compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #1 out of 898 companies for Return-on-Tangible-Equity. This places Novartis AG in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.88. Historically, Novartis AG's own Return-on-Tangible-Equity has ranged from 56.19 to 623.52 over the past decade. 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-Equity for a Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.88, based on 898 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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:NOT0) is currently considered Modestly Overvalued. The stock's GF Value™ is €15.09, compared to a current price of €18.20 — trading 20.6% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Novartis AG's overall GF Score™ is 83/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Novartis AG (FRA:NOT0), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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:NOT0) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued.
The current stock price of €18.20 is trading 20.6% above its estimated GF Value™ of €15.09.
GuruFocus considers Novartis AG to be Modestly Overvalued.
No single metric tells the full story. See the FRA:NOT0 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.
83GF Score
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