Novo Nordisk ASMEX:NOVOBN +3.85%79 ROE % is 97.24% as of Mar. 2026, which is 31% above its 10-year median of 74.00. GuruFocus rates MEX:NOVOBN with a GF Score™ of 79/100 and a GF Value™ of MXN2,387.36 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 936 Drug Manufacturers companies, Novo Nordisk AS ranks better than 97.22% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Novo Nordisk AS's annualized net income for the quarter that ended in Mar. 2026 was MXN541,731 Mil. Novo Nordisk AS's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was MXN557,079 Mil. Therefore, Novo Nordisk AS's annualized ROE % for the quarter that ended in Mar. 2026 was 97.24%.
The historical rank and industry rank for Novo Nordisk AS's ROE % or its related term are showing as below:
MEX:NOVOBN'
s ROE % Range Over the Past 10 Years
Min: 60.7 Med: 74 Max: 88.07
Current: 69.8
During the past 13 years, Novo Nordisk AS's highest ROE % was 88.07%. The lowest was 60.70%. And the median was 74.00%.
MEX:NOVOBN's ROE % is ranked better than 97.22% of 936
companies
in the Drug Manufacturers industry
Industry Median: 5.865
vs MEX:NOVOBN: 69.80
Novo Nordisk AS (MEX:NOVOBN) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Novo Nordisk AS ROE % Related Terms
Novo Nordisk AS ROE % Historical Data
* Premium members only.
The historical data trend for Novo Nordisk AS's ROE % 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.
For the Drug Manufacturers - General subindustry, Novo Nordisk AS's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novo Nordisk AS's ROE % distribution charts can be found below:
* The bar in red indicates where Novo Nordisk AS's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Novo Nordisk AS (MEX:NOVOBN) has a ROE % of 97.24% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Novo Nordisk AS and its competitors. This is 31% above median its historical median of 74.00. Over the past decade, Novo Nordisk AS's ROE % has ranged from 60.70 to 88.07. According to the industry distribution chart, Novo Nordisk AS ranks #26 out of 936 companies in the Drug Manufacturers industry, placing it in the top 2.8%.
Is Novo Nordisk AS's ROE % too high?
Novo Nordisk AS's current ROE % of 97.24% is 31% above median its 10-year median of 74.00. Over the past 10 years, this metric has ranged from a low of 60.70 to a high of 88.07. The Drug Manufacturers industry median ROE % is 5.87. Novo Nordisk AS's value of 97.24% is 1558% above this industry median. Based on the distribution chart, Novo Nordisk AS ranks #26 out of 936 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Novo Nordisk AS has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Novo Nordisk AS's ROE % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novo Nordisk AS ranks #26 out of 936 companies for ROE %. This places Novo Nordisk AS in the top 3% of its industry — outperforming the majority of peers. The industry median ROE % is 5.87. Novo Nordisk AS's value of 97.24% is 1558% above this benchmark. Historically, Novo Nordisk AS's own ROE % has ranged from 60.70 to 88.07 over the past decade. While the company's 10-year median is 74.00 vs. the industry median of 5.87, Novo Nordisk AS 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 ROE % for a Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 5.87, based on 936 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novo Nordisk AS's current ROE % of 97.24% is 1558% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Novo Nordisk AS and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novo Nordisk AS's current ROE % is 97.24%, which is 31% above median its own 10-year median of 74.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novo Nordisk AS stock overvalued right now?
Based on GuruFocus' analysis, Novo Nordisk AS (MEX:NOVOBN) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN2,387.36, compared to a current price of MXN810.00 — trading 66.1% below its estimated fair value. The current ROE % is 97.24%, which is 31% above median its 10-year median of 74.00 and 1558% above the Drug Manufacturers industry median of 5.87. Novo Nordisk AS's overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Novo Nordisk AS (MEX:NOVOBN), the current ROE % is 97.24% 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 Novo Nordisk AS (MEX:NOVOBN) Overvalued in 2026?
Based on GuruFocus' analysis, Novo Nordisk AS stock appears to be undervalued.
The current stock price of MXN810.00 is trading 66.1% below its estimated GF Value™ of MXN2,387.36.
GuruFocus considers Novo Nordisk AS to be Significantly Undervalued.
Key valuation signals for MEX:NOVOBN:
ROE %: 97.24% (31% above median its 10-year median of 74.00)
GF Value™: MXN2,387.36 vs. price of MXN810.00 (66.1% below fair value)
Industry Position: 1558% above the Drug Manufacturers median (#26 of 936)
No single metric tells the full story. See the MEX:NOVOBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 (contributing less than 10% of revenue) that specializes in protein therapies for hemophilia and other disorders.
79GF Score
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