Novo Nordisk has seen a steep reset in its share price over the past few years, which puts a spotlight on whether the current market value still lines up with what the business earns. With earnings at the centre of most long term theses on the stock, the question is how well the present price reflects that profit stream today.
Over the past 3 years the share price has fallen about 60%, which makes the link between Novo Nordisk’s current valuation and its earnings power a much more pressing topic for investors.
The ongoing DKK 15b share repurchase programme, including the buyback of 37,849,179 B shares by 9 October 2026, can reshape per share earnings and therefore changes how investors might think about what a fair multiple looks like.
The analysts covering Novo Nordisk have run their own numbers. See what analysts think Novo Nordisk’s shares could be worth.
For investors, the debate is whether Novo Nordisk’s recent share price level is adequately supported by the earnings the company is generating today.
If you are weighing Novo Nordisk against other opportunities that focus on valuation and quality, a focused stock screen built around 32 high quality undervalued stocks can be a useful next step.
Is Novo Nordisk Still Cheap on Earnings?
The P/E ratio is one of the cleanest ways to line up Novo Nordisk’s share price against the profits it is already producing. On this yardstick, the stock trades at about 9.7x earnings, which is below the Pharmaceuticals industry average of roughly 14.8x and far under the peer group around 57.1x. For readers, that means the market is currently paying fewer dollars for each dollar of Novo Nordisk’s earnings than is typical across both its sector and closer comparables.
Because the in house fair multiple, which blends factors like growth prospects, profitability and risk, sits above the current 9.7x P/E, the shares screen as undervalued on this framework. The ongoing DKK 15b buyback, including the repurchase of 37,849,179 B shares by 9 October 2026, is already shrinking the share count, so each remaining share represents a larger slice of those earnings while the P/E still points to a discount. This kind of gap between price and earnings power is what many valuation driven investors look for when they run their comparisons across the sector. Explore the numbers behind Novo Nordisk’s P/E valuation.
NYSE:NVO P/E Ratio as at Oct 2026 The Novo Nordisk Narrative: What Would Justify Today’s Price?
Novo Nordisk’s valuation puzzle only really makes sense once you spell out the story behind it. Simply Wall St Narratives on the Community page do exactly that by laying out the specific path for growth, profitability and earnings that would need to play out for the stock to be worth substantially more or materially less than today’s price. Each narrative links its number to a clear view on where growth, margins and risk might head next. You can revisit this view as fresh information comes through.
One of the top community narratives on Novo Nordisk: 60% undervalued
“Management has narrowed 2025 guidance to 8-11% sales growth and 4-7% operating profit growth, explicitly citing intensifying competition and pricing pressure…”
Discover why this Narrative puts Novo Nordisk at 60% undervalued.
Novo Nordisk’s valuation still depends on who is steering the ship
Price multiples only tell part of the story, because the people setting Novo Nordisk’s priorities and how they are rewarded can tilt long term outcomes in very different directions. See who runs Novo Nordisk and how they are paid.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NVO.
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