Novartis
NVS
#50
Rank
$189.04 B
Marketcap
$87.68
Share price
-0.03%
Change (1 day)
8.65%
Change (1 year)

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 November 2022 (TTM): 8.96

According to Novartis's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 8.95608. 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
20218.16-69.33%
202026.643.55%
201918.5
201722.9-0.9%
201623.1121.85%
201510.4-47.1%
201419.72.68%
201319.232.74%
201214.5

P/E ratio for similar companies or competitors

Company P/E ratio P/E ratio differencediff. Country
24.4 171.90%๐Ÿ‡บ๐Ÿ‡ธ USA
9.34 4.23%๐Ÿ‡บ๐Ÿ‡ธ USA
21.8 143.77%๐Ÿ‡บ๐Ÿ‡ธ USA
13.8 54.22%๐Ÿ‡ซ๐Ÿ‡ท France
18.0 100.81%๐Ÿ‡บ๐Ÿ‡ธ USA
25.4 183.06%๐Ÿ‡บ๐Ÿ‡ธ USA
-158-1,860.18%๐Ÿ‡ฌ๐Ÿ‡ง UK
4.27-52.32%๐Ÿ‡ฌ๐Ÿ‡ง UK
-7.42-182.88%๐Ÿ‡ฎ๐Ÿ‡ฑ 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.