Novartis AG (FRA:NOT) ROCE %: 19.71% (As of Mar. 2026)


FRA:NOT Novartis AG FRA:NOT
83 GF Score
Price €131.52
GF Value €109.77
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Novartis AG ROCE %?

Novartis AG FRA:NOT +2.14% 83 ROCE % is 19.71% as of Mar. 2026. GuruFocus rates FRA:NOT with a GF Score™ of 83/100 and a GF Value™ of €109.77 (Modestly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Novartis AG's annualized ROCE % for the quarter that ended in Mar. 2026 was 19.71%.

Novartis AG  (FRA:NOT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Novartis AG ROCE % Related Terms

Novartis AG ROCE % Historical Data

* Premium members only.

The historical data trend for Novartis AG's ROCE % 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.

Novartis AG ROCE % Chart

Novartis AG Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.71 8.67 12.10 20.32 21.09

Novartis AG Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.94 26.49 24.00 17.74 19.71
FRA:NOT
83GF Score
Novartis AG FRA:NOT
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Novartis AG ROCE % Calculation

Novartis AG's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=14941.584/( ( (97644.93 - 27400.86) + (94750.446 - 23295.412) )/ 2 )
=14941.584/( (70244.07+71455.034)/ 2 )
=14941.584/70849.552
=21.09 %

Novartis AG's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=14469.72/( ( (94750.446 - 23295.412) + (102530.18 - 27138.51) )/ 2 )
=14469.72/( ( 71455.034 + 75391.67 )/ 2 )
=14469.72/73423.352
=19.71 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 19.71% mean?
Novartis AG (FRA:NOT) has a ROCE % of 19.71% as of Mar. 2026.
Is Novartis AG's ROCE % too high?
Novartis AG's current ROCE % is 19.71%. The Drug Manufacturers industry median ROCE % is 7.00. Novartis AG's value of 19.71% is 181.8% above this industry median. 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 ROCE % compare to LLY and JNJ?
Novartis AG's ROCE % of 19.71% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.00. Novartis AG's value of 19.71% is 181.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Drug Manufacturers company?
The median ROCE % among Drug Manufacturers companies is 7.00, based on 958 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current ROCE % of 19.71% is 181.8% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Drug Manufacturers industry, the median ROCE % is 7.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current ROCE % is 19.71%. 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:NOT) is currently considered Modestly Overvalued. The stock's GF Value™ is €109.77, compared to a current price of €131.52 — trading 19.8% above its estimated fair value. The current ROCE % is 19.71% and 181.8% above the Drug Manufacturers industry median of 7.00. Novartis AG's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Novartis AG (FRA:NOT), the current ROCE % is 19.71% 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:NOT) Overvalued in 2026?

Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued. The current stock price of €131.52 is trading 19.8% above its estimated GF Value™ of €109.77. GuruFocus considers Novartis AG to be Modestly Overvalued.

Key valuation signals for FRA:NOT:

  • ROCE %: 19.71%
  • GF Value™: €109.77 vs. price of €131.52 (19.8% above fair value)
  • GF Score™: 83/100 with 6 warning signs
  • Industry Position: 181.8% above the Drug Manufacturers median

No single metric tells the full story. See the FRA:NOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Novartis AG Business Description

Address Lichtstrasse 35, Basel, CHE, 4056
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€131.52
Price
€109.77
GF Value