Novartis AG is a biotechnology and pharmaceutical company based in Basel, Switzerland. Novartis was formed in 1996 from a merger of the two Basel pharmaceutical and chemical companies Ciba-Geigy AG and Sandoz AG. Novartis is one of the largest pharmaceutical companies in the world with sales of USD 47.4 billion in 2019.
P/E ratio for Novartis (NVS)
P/E ratio as of April 2024 (TTM): 24.8
According to Novartis's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 24.7513. At the end of 2022 the company had a P/E ratio of 28.4.
P/E ratio history for Novartis from 2001 to 2023
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2022 | 28.4 | 248.54% |
| 2021 | 8.16 | -69.33% |
| 2020 | 26.6 | 43.55% |
| 2019 | 18.5 | 30.86% |
| 2018 | 14.2 | -38.26% |
| 2017 | 22.9 | -0.9% |
| 2016 | 23.1 | 121.85% |
| 2015 | 10.4 | -47.1% |
| 2014 | 19.7 | 2.68% |
| 2013 | 19.2 | 30.37% |
| 2012 | 14.7 | 8.42% |
| 2011 | 13.6 | 10.1% |
| 2010 | 12.3 | -6.12% |
| 2009 | 13.1 | 6.44% |
| 2008 | 12.4 | 81.98% |
| 2007 | 6.79 | -59.25% |
| 2006 | 16.7 | -12.86% |
| 2005 | 19.1 | -4.18% |
| 2004 | 20.0 | -3.45% |
| 2003 | 20.7 | 15.35% |
| 2002 | 17.9 | -17.73% |
| 2001 | 21.8 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 Johnson & Johnson JNJ | 10.3 | -58.20% | 🇺🇸 USA |
 Pfizer PFE | 13.7 | -44.85% | 🇺🇸 USA |
 Abbott Laboratories ABT | 35.4 | 43.10% | 🇺🇸 USA |
 Sanofi SNY | 14.3 | -42.34% | 🇫🇷 France |
 Merck MRK | 68.7 | 177.74% | 🇺🇸 USA |
 Bristol-Myers Squibb BMY | 12.2 | -50.85% | 🇺🇸 USA |
 AstraZeneca AZN | 34.4 | 39.14% | 🇬🇧 UK |
 GlaxoSmithKline GSK | 11.2 | -54.68% | 🇬🇧 UK |
 Teva Pharmaceutical Industries TEVA | -6.39 | -125.82% | 🇮🇱 Israel |
How to read a P/E ratio?
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.