Novartis Intrinsic Value

NOVARTIND • Healthcare
Current Stock Price
₹800.05
Primary Intrinsic Value
₹950.40
Market Cap
₹960.1 Cr
+6.1% Upside
Median Value
₹848.96
Value Range
₹240 - ₹1308
Assessment
Trading Near Calculated Value
Safety Margin
5.8%

NOVARTIND Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹950.40 ₹760.32 - ₹1140.48 +18.8% EPS: ₹43.20, Sector P/E: 22x
Book Value Method asset ₹1308.33 ₹1177.50 - ₹1439.16 +63.5% Book Value/Share: ₹654.17, P/B: 2.0x
Revenue Multiple Method revenue ₹660.00 ₹594.00 - ₹726.00 -17.5% Revenue/Share: ₹330.00, P/S: 2.0x
EBITDA Multiple Method earnings ₹1183.33 ₹1065.00 - ₹1301.66 +47.9% EBITDA: ₹142.00Cr, EV/EBITDA: 10x
Simple DCF (5Y) dcf ₹848.96 ₹679.17 - ₹1018.75 +6.1% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹240.01 ₹216.01 - ₹264.01 -70.0% EPS Growth: 1.1%, Fair P/E: 0.8x
Growth Adjusted P/E growth ₹640.84 ₹576.76 - ₹704.92 -19.9% Revenue Growth: -2.2%, Adj P/E: 14.8x
ROE Based Valuation profitability ₹1070.00 ₹963.00 - ₹1177.00 +33.7% ROE: 13.6%, P/E Multiple: 12x
Graham Defensive Method conservative ₹797.40 ₹717.66 - ₹877.14 -0.3% EPS: ₹43.20, BVPS: ₹654.17
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

NOVARTIND Intrinsic Value Analysis

What is the intrinsic value of NOVARTIND?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Novartis (NOVARTIND) is ₹848.96 (median value). With the current market price of ₹800.05, this represents a +6.1% variance from our estimated fair value.

The valuation range spans from ₹240.01 to ₹1308.33, indicating ₹240.01 - ₹1308.33.

Is NOVARTIND undervalued or overvalued?

Based on our multi-method analysis, Novartis (NOVARTIND) appears to be trading near calculated value by approximately 6.1%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 35.52 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.21 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 13.6% Industry Standard: 15%+ Above 10% Measures shareholder return efficiency
Operating Margin 28.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.42x Industry Standard: 1.0x+ Below 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹75 Cr ₹74 Cr Positive Free Cash Flow 8/10
March 2024 ₹113 Cr ₹113 Cr Positive Free Cash Flow 8/10
March 2023 ₹45 Cr ₹-32 Cr Positive Operating Cash Flow 6/10
March 2022 ₹39 Cr ₹39 Cr Positive Free Cash Flow 8/10
March 2021 ₹-69 Cr ₹-69 Cr Negative Cash Flow 3/10