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Novartis AGLTS:0QLR +1.23%79 Shiller PE Ratio is 21.63 as of Sep. 17, 2026, which is 21% above its 10-year median of 17.83. GuruFocus rates LTS:0QLR with a GF Score™ of 79/100 and a GF Value™ of CHF107.79 (Fairly Valued). The stock has 2 warning signs investors should review. Among 529 Drug Manufacturers companies, Novartis AG ranks better than 57.66% on this metric.
As of today (2026-09-17), Novartis AG's current share price is CHF115.36. Novartis AG's E10 for the quarter that ended in Jun. 2026 was CHF5.33. Novartis AG's Shiller PE Ratio for today is 21.63.
The historical rank and industry rank for Novartis AG's Shiller PE Ratio or its related term are showing as below:
LTS:0QLR'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 12.94 Med: 17.83 Max: 25.39
Current: 21.11
During the past years, Novartis AG's highest Shiller PE Ratio was 25.39. The lowest was 12.94. And the median was 17.83.
LTS:0QLR's Shiller PE Ratio is ranked better than 57.66% of 529
companies
in the Drug Manufacturers industry
Industry Median: 24.61
vs LTS:0QLR: 21.11
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Novartis AG's adjusted earnings per share data for the three months ended in Jun. 2026 was CHF1.348. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is CHF5.33 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Novartis AG (LTS:0QLR) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Novartis AG Shiller PE Ratio Related Terms
Novartis AG Shiller PE Ratio Historical Data
* Premium members only.
The historical data trend for Novartis AG's Shiller PE Ratio 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.
LTS:0QLR vs LLY, JNJ, ABBV: Shiller PE Ratio Comparison
For the Drug Manufacturers - General subindustry, Novartis AG's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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 Shiller PE Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Novartis AG's Shiller PE Ratio falls into.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
Novartis AG's Shiller PE Ratio for today is calculated as
* 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's E10 for the quarter that ended in Jun. 2026 is calculated as:
For example, Novartis AG's adjusted earnings per share data for the three months ended in Jun. 2026 was:
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Novartis AG (LTS:0QLR) has a Shiller PE Ratio of 21.63 as of Sep. 17, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Novartis AG and its competitors. This is 21% above median its historical median of 17.83. Over the past decade, Novartis AG's Shiller PE Ratio has ranged from 12.94 to 25.39. According to the industry distribution chart, Novartis AG ranks #224 out of 529 companies in the Drug Manufacturers industry, placing it in the top 42.3%.
Is Novartis AG's Shiller PE Ratio too high?
Novartis AG's current Shiller PE Ratio of 21.63 is 21% above median its 10-year median of 17.83. Over the past 10 years, this metric has ranged from a low of 12.94 to a high of 25.39. The Drug Manufacturers industry median Shiller PE Ratio is 24.61. Novartis AG's value of 21.63 is 12.1% below this industry median. Based on the distribution chart, Novartis AG ranks #224 out of 529 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Novartis AG has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's Shiller PE Ratio compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #224 out of 529 companies for Shiller PE Ratio. This puts Novartis AG in the upper half of its industry. The industry median Shiller PE Ratio is 24.61. Novartis AG's value of 21.63 is 12.1% below this benchmark. Historically, Novartis AG's own Shiller PE Ratio has ranged from 12.94 to 25.39 over the past decade. While the company's 10-year median is 17.83 vs. the industry median of 24.61, Novartis AG has consistently been below 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 Shiller PE Ratio for a Drug Manufacturers company?
The median Shiller PE Ratio among Drug Manufacturers companies is 24.61, based on 529 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current Shiller PE Ratio of 21.63 is 12.1% below 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median Shiller PE Ratio is 24.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current Shiller PE Ratio is 21.63, which is 21% above median its own 10-year median of 17.83. 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 (LTS:0QLR) is currently considered Fairly Valued. The stock's GF Value™ is CHF107.79, compared to a current price of CHF115.36 — trading 7% above its estimated fair value. The current Shiller PE Ratio is 21.63, which is 21% above median its 10-year median of 17.83 and 12.1% below the Drug Manufacturers industry median of 24.61. Novartis AG's overall GF Score™ is 79/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For Novartis AG (LTS:0QLR), the current Shiller PE Ratio is 21.63 as of Sep. 17, 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 (LTS:0QLR) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued.
The current stock price of CHF115.36 is trading 7% above its estimated GF Value™ of CHF107.79.
GuruFocus considers Novartis AG to be Fairly Valued.
Key valuation signals for LTS:0QLR:
Shiller PE Ratio: 21.63 (21% above median its 10-year median of 17.83)
GF Value™: CHF107.79 vs. price of CHF115.36 (7% above fair value)
Industry Position: 12.1% below the Drug Manufacturers median (#224 of 529)
No single metric tells the full story. See the LTS:0QLR 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.
79GF Score
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