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If you are trying to work out whether Novo Nordisk is attractively priced today, it helps to step back from the headlines and look closely at what the numbers say about value.
The stock last closed at US$36.66, with returns of a 5.0% decline over 7 days, a 38.3% decline over 30 days, a 30.0% decline year to date, a 57.3% decline over 1 year and a 47.2% decline over 3 years, compared to a 10.2% gain over 5 years.
Recent coverage of Novo Nordisk has focused on how investors are reassessing expectations after a sharp pullback in the share price. This context is important because it can affect how the same valuation metrics are interpreted when sentiment shifts quickly.
On our framework, Novo Nordisk scores 5/6 on the valuation checks. This suggests there is plenty to unpack as we compare different valuation approaches and then look at an even richer way to think about value at the end of this article.
Find out why Novo Nordisk’s -57.3% return over the last year is lagging behind its peers.
A Discounted Cash Flow, or DCF, model starts with projected future cash flows and then discounts them back to today, so you can compare that stream of cash to the current share price.
For Novo Nordisk, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flows in Danish kroner. The latest twelve month free cash flow is DKK 52.10b. Analyst estimates and extrapolations then project free cash flow rising to DKK 106.69b by 2030, with a detailed path of ten year projections built into the model. Simply Wall St uses analyst inputs where available and then extends the series beyond the formal forecast period.
When all projected cash flows are discounted back, the DCF points to an estimated intrinsic value of US$107.04 per share, compared with the recent share price of US$36.66. That gap implies the stock screens as 65.8% undervalued on this DCF snapshot.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Novo Nordisk is undervalued by 65.8%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks.
NVO Discounted Cash Flow as at Mar 2026
For a profitable business like Novo Nordisk, the P/E ratio is a useful way to link what you pay for the stock to the earnings it is currently generating. It helps you judge how many dollars investors are paying today for each dollar of earnings.
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What counts as a “normal” P/E depends on how the market views the company’s growth prospects and risk. Higher expected growth or lower perceived risk can justify a higher multiple, while lower growth or higher risk usually means a lower one.
Novo Nordisk currently trades on a P/E of 10.04x. That is below the Pharmaceuticals industry average of 20.02x and below the peer average of 18.33x. Simply Wall St also calculates a proprietary “Fair Ratio” of 28.88x for Novo Nordisk. This Fair Ratio reflects factors such as the company’s earnings growth profile, industry, profit margins, market capitalization and risk characteristics.
Because it blends these elements into a single company specific yardstick, the Fair Ratio can be more informative than a simple comparison with peers or the broad industry. Comparing the Fair Ratio of 28.88x with the current P/E of 10.04x, Novo Nordisk appears materially undervalued on this metric.
Result: UNDERVALUED
NYSE:NVO P/E Ratio as at Mar 2026
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Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, which are simply your own story for a company, linking your view on its future revenue, earnings and margins to a clear forecast and fair value that you can compare with today’s share price.
On Simply Wall St, Narratives live in the Community page and are used by millions of investors as an easy tool to connect a company’s story to numbers, see what that implies for fair value, and then judge whether the current price looks high or low against that figure.
Because Narratives are tied into live data, they update as new information comes in, such as earnings releases or news. This way your fair value view stays aligned with the latest assumptions instead of being frozen at the time you first ran the numbers.
For example, one Novo Nordisk Narrative on the platform currently sets fair value at about US$95 per ADR while another sits closer to US$65.50. This shows how different investors, using the same company but different assumptions, can reasonably arrive at quite different conclusions about when they might consider buying or selling.
Do you think there’s more to the story for Novo Nordisk? Head over to our Community to see what others are saying!
NYSE:NVO 1-Year Stock Price Chart
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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