How to buy Novartis stock | $89.8

Novartis AG is a drug manufacturers-general business based in the US. Novartis shares (NVS) are listed on the NYSE and all prices are listed in US Dollars. Novartis employs 109,000 staff and has a trailing 12-month revenue of around 0.00.

Novartis stock price (NYSE: NVS)

Use our graph to track the performance of NVS stocks over time.

Novartis shares at a glance

• Key figures

Information last updated 2021-07-28.

Latest market close	$89.80
52-week range	$74.07 - $94.77
50-day moving average	$92.17
200-day moving average	$89.52
Wall St. target price	$105.00
PE ratio	23.281
Dividend yield	$3.4 (3.72%)
Earnings per share (TTM)	$3.95

Buy Novartis shares from these brokerages

Compare special offers, low fees and a wide range of types of investments among top trading platforms.

*Signup bonus information updated weekly.

Is it a good time to buy Novartis stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Technical Analysis of Novartis AG by TradingView

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Novartis price performance over time

Historical closes compared with the close of $89.8 from 2021-06-04

1 week (2021-07-23)	N/A
1 month (2021-07-02)	-2.37%
3 months (2021-05-03)	3.95%
6 months (2021-01-30)	N/A

1 year (2020-07-30)	N/A
2 years (2019-07-30)	N/A
3 years (2018-07-30)	N/A
5 years (2016-07-30)	N/A

Is Novartis under- or over-valued?

Valuing Novartis stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Novartis's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Novartis's P/E ratio

Novartis's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 23x. In other words, Novartis shares trade at around 23x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Novartis's PEG ratio

Novartis's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.5959. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Novartis's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Novartis's EBITDA

Novartis's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $19.1 billion.

The EBITDA is a measure of a Novartis's overall financial performance and is widely used to measure a its profitability.

Novartis financials

Revenue TTM	$51.6 billion
Operating margin TTM	26.67%
Gross profit TTM	$35.5 billion
Return on assets TTM	6.94%
Return on equity TTM	16.64%
Profit margin	17.43%
Book value	$24.16
Market capitalisation	$205.5 billion

TTM: trailing 12 months

Shorting Novartis shares

There are currently 5.7 million Novartis shares held short by investors – that's known as Novartis's "short interest". This figure is 13.4% down from 6.6 million last month.

There are a few different ways that this level of interest in shorting Novartis shares can be evaluated.

Novartis's "short interest ratio" (SIR)

Novartis's "short interest ratio" (SIR) is the quantity of Novartis shares currently shorted divided by the average quantity of Novartis shares traded daily (recently around 1.5 million). Novartis's SIR currently stands at 3.8. In other words for every 100,000 Novartis shares traded daily on the market, roughly 3800 shares are currently held short.

However Novartis's short interest can also be evaluated against the total number of Novartis shares, or, against the total number of tradable Novartis shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Novartis's short interest could be expressed as 0% of the outstanding shares (for every 100,000 Novartis shares in existence, roughly 0 shares are currently held short) or 0.0027% of the tradable shares (for every 100,000 tradable Novartis shares, roughly 3 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Novartis.

Find out more about how you can short Novartis stock.

Novartis share dividends

Dividend payout ratio: 45.65% of net profits

Recently Novartis has paid out, on average, around 45.65% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.52% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Novartis shareholders could enjoy a 3.52% return on their shares, in the form of dividend payments. In Novartis's case, that would currently equate to about $3.4 per share.

While Novartis's payout ratio might seem fairly standard, it's worth remembering that Novartis may be investing much of the rest of its net profits in future growth.

Novartis's most recent dividend payout was on 14 March 2021. The latest dividend was paid out to all shareholders who bought their shares by 3 March 2021 (the "ex-dividend date").

Have Novartis's shares ever split?

Novartis's shares were split on a 1116:1000 basis on 8 April 2019. So if you had owned 1000 shares the day before before the split, the next day you'd have owned 1116 shares. This wouldn't directly have changed the overall worth of your Novartis shares – just the quantity. However, indirectly, the new 10.4% lower share price could have impacted the market appetite for Novartis shares which in turn could have impacted Novartis's share price.

Novartis share price volatility

Over the last 12 months, Novartis's shares have ranged in value from as little as $74.0678 up to $94.77. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Novartis's is 0.5132. This would suggest that Novartis's shares are less volatile than average (for this exchange).

Novartis overview

Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company operates through two segments, Innovative Medicines and Sandoz. The Innovative Medicines segment offers prescription medicines for patients and healthcare providers. It also provides ophthalmology, neuroscience, immunology, hepatology and dermatology, respiratory, established, and cardiovascular, renal and metabolism medicine products. The Sandoz segment provides active ingredients and finished dosage forms of small molecule pharmaceuticals to third parties across a range of therapeutic areas, as well as finished dosage form anti-infectives. It also provides active pharmaceutical ingredients and intermediates primarily antibiotics; protein- or other biotechnology-based products, including biosimilars; and biotechnology manufacturing services. Novartis AG has a license and collaboration agreement with Alnylam Pharmaceuticals to develop, manufacture, and commercialize inclisiran; an agreement with CureVac to manufacture COVID-19 vaccine candidate CVnCoV; a collaboration with Artios Pharma Limited to create next generation DDR cancer therapies; and a clinical collaboration with Kura Oncology, Inc.

Frequently asked questions

What percentage of Novartis is owned by insiders or institutions?
Currently 0.007% of Novartis shares are held by insiders and 10.103% by institutions. How many people work for Novartis?
Latest data suggests 109,000 work at Novartis. When does the fiscal year end for Novartis?
Novartis's fiscal year ends in December. Where is Novartis based?
Novartis's address is: Lichtstrasse 35, Basel, Switzerland, 4056 What is Novartis's ISIN number?
Novartis's international securities identification number is: US66987V1098 What is Novartis's CUSIP number?
Novartis's Committee on Uniform Securities Identification Procedures number is: 66987V109