Novo Nordisk ASWBO:NNO2 +1.76%71 5-Year Yield-on-Cost % is 10.64 as of Jul. 08, 2026, which is 80% above its 10-year median of 5.90. GuruFocus rates WBO:NNO2 with a GF Score™ of 71/100 and a GF Value™ of €120.11 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 517 Drug Manufacturers companies, Novo Nordisk AS ranks better than 90.91% on this metric.
Novo Nordisk AS's yield on cost for the quarter that ended in Mar. 2026 was 10.64.
The historical rank and industry rank for Novo Nordisk AS's 5-Year Yield-on-Cost % or its related term are showing as below:
WBO:NNO2'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.27 Med: 5.9 Max: 14.83
Current: 10.64
During the past 13 years, Novo Nordisk AS's highest Yield on Cost was 14.83. The lowest was 2.27. And the median was 5.90.
WBO:NNO2's 5-Year Yield-on-Cost % is ranked better than 90.91% of 517
companies
in the Drug Manufacturers industry
Industry Median: 2.27
vs WBO:NNO2: 10.64
Novo Nordisk AS (WBO:NNO2) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Novo Nordisk AS 5-Year Yield-on-Cost % Related Terms
WBO:NNO2 vs LLY, JNJ, ABBV: 5-Year Yield-on-Cost % Comparison
For the Drug Manufacturers - General subindustry, Novo Nordisk AS's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novo Nordisk AS's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Novo Nordisk AS's 5-Year Yield-on-Cost % falls into.
Novo Nordisk AS 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Novo Nordisk AS is calculated as
Novo Nordisk AS (WBO:NNO2) has a 5-Year Yield-on-Cost % of 10.64 as of Jul. 08, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Novo Nordisk AS and its competitors. This is 80% above median its historical median of 5.90. Over the past decade, Novo Nordisk AS's 5-Year Yield-on-Cost % has ranged from 2.27 to 14.83. According to the industry distribution chart, Novo Nordisk AS ranks #47 out of 517 companies in the Drug Manufacturers industry, placing it in the top 9.1%.
Is Novo Nordisk AS's 5-Year Yield-on-Cost % too high?
Novo Nordisk AS's current 5-Year Yield-on-Cost % of 10.64 is 80% above median its 10-year median of 5.90. Over the past 10 years, this metric has ranged from a low of 2.27 to a high of 14.83. The Drug Manufacturers industry median 5-Year Yield-on-Cost % is 2.27. Novo Nordisk AS's value of 10.64 is 368.7% above this industry median. Based on the distribution chart, Novo Nordisk AS ranks #47 out of 517 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 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Novo Nordisk AS's 5-Year Yield-on-Cost % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novo Nordisk AS ranks #47 out of 517 companies for 5-Year Yield-on-Cost %. This places Novo Nordisk AS in the top 9% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 2.27. Novo Nordisk AS's value of 10.64 is 368.7% above this benchmark. Historically, Novo Nordisk AS's own 5-Year Yield-on-Cost % has ranged from 2.27 to 14.83 over the past decade. While the company's 10-year median is 5.90 vs. the industry median of 2.27, 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 5-Year Yield-on-Cost % for a Drug Manufacturers company?
The median 5-Year Yield-on-Cost % among Drug Manufacturers companies is 2.27, based on 517 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novo Nordisk AS's current 5-Year Yield-on-Cost % of 10.64 is 368.7% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Novo Nordisk AS and its competitors. For the Drug Manufacturers industry, the median 5-Year Yield-on-Cost % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novo Nordisk AS's current 5-Year Yield-on-Cost % is 10.64, which is 80% above median its own 10-year median of 5.90. 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 (WBO:NNO2) is currently considered Significantly Undervalued. The stock's GF Value™ is €120.11, compared to a current price of €43.59 — trading 63.7% below its estimated fair value. The current 5-Year Yield-on-Cost % is 10.64, which is 80% above median its 10-year median of 5.90 and 368.7% above the Drug Manufacturers industry median of 2.27. Novo Nordisk AS's overall GF Score™ is 71/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Novo Nordisk AS (WBO:NNO2), the current 5-Year Yield-on-Cost % is 10.64 as of Jul. 08, 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 (WBO:NNO2) Overvalued in 2026?
Based on GuruFocus' analysis, Novo Nordisk AS stock appears to be undervalued.
The current stock price of €43.59 is trading 63.7% below its estimated GF Value™ of €120.11.
GuruFocus considers Novo Nordisk AS to be Significantly Undervalued.
Key valuation signals for WBO:NNO2:
5-Year Yield-on-Cost %: 10.64 (80% above median its 10-year median of 5.90)
GF Value™: €120.11 vs. price of €43.59 (63.7% below fair value)
Industry Position: 368.7% above the Drug Manufacturers median (#47 of 517)
No single metric tells the full story. See the WBO:NNO2 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.
71GF Score
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