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 March 2023 (TTM): 9.22
According to Novartis's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 9.22165. At the end of 2021 the company had a P/E ratio of 8.16.
P/E ratio history for Novartis from 2001 to 2022
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2021 | 8.16 | -69.33% |
| 2020 | 26.6 | 43.55% |
| 2019 | 18.5 | |
| 2017 | 22.9 | -0.9% |
| 2016 | 23.1 | 121.85% |
| 2015 | 10.4 | -47.1% |
| 2014 | 19.7 | 2.68% |
| 2013 | 19.2 | 32.74% |
| 2012 | 14.5 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 Johnson & Johnson JNJ | 21.0 | 128.07% | 🇺🇸 USA |
 Pfizer PFE | 7.57 | -17.86% | 🇺🇸 USA |
 Abbott Laboratories ABT | 22.9 | 148.63% | 🇺🇸 USA |
 Sanofi SNY | 16.1 | 75.04% | 🇫🇷 France |
 Merck MRK | 17.7 | 92.30% | 🇺🇸 USA |
 Bristol-Myers Squibb BMY | 21.8 | 136.46% | 🇺🇸 USA |
 AstraZeneca AZN | 104 | 1,029.26% | 🇬🇧 UK |
 GlaxoSmithKline GSK | 4.22 | -54.22% | 🇬🇧 UK |
 Teva Pharmaceutical Industries TEVA | -7.53 | -181.61% | 🇮🇱 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.