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Novartis AGFRA:NOT -0.60%80 5-Year Share Buyback Ratio is 3.50 as of Jun. 2026. GuruFocus rates FRA:NOT with a GF Score™ of 80/100 and a GF Value™ of €112.91 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 699 Drug Manufacturers companies, Novartis AG ranks better than 98.43% on this metric.
Shares Outstanding (EOP) are shares that have been authorized, issued, and purchased by investors and are held by them.
5-Year Share Buyback Ratio measures the average annual proportion of a company's outstanding shares repurchased over the past five years. It is calculated as the annualized percentage change in shares outstanding from five years ago to the current year. A positive ratio may indicate share buybacks over the period, while a zero or negative ratio may reflect no repurchases or potential share issuance. Novartis AG's current 5-Year Share Buyback Ratio was 3.50%.
FRA:NOT's 5-Year Share Buyback Ratio is ranked better than 98.43% of 699
companies
in the Drug Manufacturers industry
Industry Median: -2.3
vs FRA:NOT: 3.50
Novartis AG (FRA:NOT) 5-Year Share Buyback Ratio Explanation
A negative number means the company might be issuing new shares. A positive number indicates that the company is buying back shares.
Be Aware
Investors usually like share buybacks. But as pointed by Warren Buffett, only if a company buys back shares at the prices below the stock's intrinsic value, it rewards remaining shareholders. If a company buys its overvalued stocks back, it destroys shareholder value.
Novartis AG 5-Year Share Buyback Ratio Related Terms
FRA:NOT vs LLY, JNJ, ABBV: 5-Year Share Buyback Ratio Comparison
For the Drug Manufacturers - General subindustry, Novartis AG's 5-Year Share Buyback Ratio, along with its competitors' market caps and 5-Year Share Buyback 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 5-Year Share Buyback Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's 5-Year Share Buyback Ratio distribution charts can be found below:
* The bar in red indicates where Novartis AG's 5-Year Share Buyback Ratio falls into.
Novartis AG 5-Year Share Buyback Ratio Calculation
This is the annualized percentage change in shares outstanding from five years ago to the current year. The annualized percentage change is calculated with least-square regression based on the latest six years of annual data on Shares Outstanding (EOP).
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average dividends per share growth rate.
What does a 5-Year Share Buyback Ratio of 3.50 mean?
Novartis AG (FRA:NOT) has a 5-Year Share Buyback Ratio of 3.50 as of Jun. 2026. The 5-Year Share Buyback Ratio measures the average annual proportion of a company's outstanding shares repurchased over the past five years. It is calculated as the annualized percentage change in shares outstanding from five years ago to the current year. View historical data for Novartis AG and its competitors. According to the industry distribution chart, Novartis AG ranks #11 out of 699 companies in the Drug Manufacturers industry, placing it in the top 1.6%.
Is Novartis AG's 5-Year Share Buyback Ratio too high?
Novartis AG's current 5-Year Share Buyback Ratio is 3.50. Based on the distribution chart, Novartis AG ranks #11 out of 699 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 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's 5-Year Share Buyback Ratio compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #11 out of 699 companies for 5-Year Share Buyback Ratio. This places Novartis AG in the top 2% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Share Buyback Ratio for a Drug Manufacturers company?
A good 5-Year Share Buyback Ratio depends on the Drug Manufacturers industry context. However, 5-Year Share Buyback Ratio 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 5-Year Share Buyback Ratio mean?
A high 5-Year Share Buyback Ratio can signal that a stock is expensive relative to its fundamentals. The 5-Year Share Buyback Ratio measures the average annual proportion of a company's outstanding shares repurchased over the past five years. It is calculated as the annualized percentage change in shares outstanding from five years ago to the current year. View historical data for Novartis AG and its competitors. Novartis AG's current 5-Year Share Buyback Ratio is 3.50. 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 €112.91, compared to a current price of €135.42 — trading 19.9% above its estimated fair value. The current 5-Year Share Buyback Ratio is 3.50. Novartis AG's overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Share Buyback Ratio calculated?
5-Year Share Buyback Ratio is calculated from a company's financial statements. For Novartis AG (FRA:NOT), the current 5-Year Share Buyback Ratio is 3.50 as of Jun. 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 €135.42 is trading 19.9% above its estimated GF Value™ of €112.91.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for FRA:NOT:
5-Year Share Buyback Ratio: 3.50
GF Value™: €112.91 vs. price of €135.42 (19.9% above fair value)
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 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.
80GF Score
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5-Year Share Buyback Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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