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If you are looking at Novo Nordisk and wondering whether the current share price offers good value, this article will walk through what the numbers are actually saying and how that might fit your own expectations.
The stock most recently closed at DKK 247.9, with returns of 4.6% over 7 days, a 16.1% decline over 30 days, a 24.9% decline year to date, and a 53.6% decline over 1 year, while the 3 year return is a 46.9% decline and the 5 year return is 21.0%.
These moves sit against a backdrop of ongoing attention on Novo Nordisk’s role in global pharmaceuticals and biotech, with investors closely watching how its treatments and market position are perceived by the market. Broader coverage of the company has focused on how its long term prospects in its core therapeutic areas might compare with current expectations embedded in the share price.
On our checks, Novo Nordisk scores a 5/6 valuation score. Next we will look at what that means across different valuation methods, before finishing with a way to think about value that goes beyond any single model.
A Discounted Cash Flow, or DCF, model estimates what a company might be worth by projecting its future cash flows and then discounting those amounts back to today in DKK. In this case, a 2 Stage Free Cash Flow to Equity model is used.
Novo Nordisk most recently reports last twelve month free cash flow of DKK 52.1b. Analyst and extrapolated projections suggest free cash flow of DKK 41.9b in 2026, rising in stages to DKK 140.4b by 2035, with DKK 105.0b projected for 2030. Simply Wall St uses analyst inputs where available and then extends those forecasts to build a 10 year path of cash flows.
When those projected cash flows are discounted back to today, the model arrives at an estimated intrinsic value of DKK 740.82 per share. Against the recent share price of DKK 247.90, this implies a 66.5% discount, which indicates the shares are trading well below this DCF estimate.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Novo Nordisk is undervalued by 66.5%. Track this in your watchlist or portfolio, or discover 225 more high quality undervalued stocks.
NOVO B Discounted Cash Flow as at Mar 2026
Story Continues
For a profitable company like Novo Nordisk, the P/E ratio is a useful way to think about value because it ties the share price directly to the earnings that shareholders ultimately rely on. Higher growth expectations or lower perceived risk can justify a higher P/E, while slower growth or higher risk usually point to a lower, more cautious P/E being reasonable.
Novo Nordisk currently trades on a P/E of 10.75x. That sits below the Pharmaceuticals industry average of 21.23x and below the peer average of 24.95x. Simply Wall St also calculates a Fair Ratio of 23.22x for Novo Nordisk, which is the P/E level suggested after accounting for factors such as earnings growth, profit margins, industry, market cap and company specific risks.
This Fair Ratio can be more informative than simple peer or industry comparisons because it adjusts for the company’s own characteristics rather than assuming all pharma stocks deserve the same multiple. Lining up the Fair Ratio of 23.22x against the current P/E of 10.75x points to the shares trading below this model based assessment of a “normal” valuation.
Result: UNDERVALUED
CPSE:NOVO B P/E Ratio as at Mar 2026
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Earlier we mentioned that there is an even better way to understand valuation, so on Simply Wall St this takes the form of Narratives, where you combine your view of Novo Nordisk’s story with your own forecast for revenue, earnings and margins, and the platform turns that into a Fair Value you can compare to today’s price.
Think of a Narrative as your personal through line. It connects what you believe about the business into a financial model, and then into a single Fair Value number that helps you decide whether the current DKK 247.90 share price looks high, low or about right for you.
On the Simply Wall St Community page, Narratives are easy to use and update automatically when fresh information, such as news, earnings or new guidance, flows into the system. Your Fair Value view can change without you rebuilding a spreadsheet each time.
For Novo Nordisk today, Community Narratives span a wide range, with one investor anchoring on a Fair Value of about DKK 287 and another at about DKK 1,036. This shows how different assumptions about future GLP 1 demand, margins, competition and discount rates can still be translated into clear, comparable numbers you can set against the live share price.
Do you think there’s more to the story for Novo Nordisk? Head over to our Community to see what others are saying!
CPSE:NOVO B 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 NOVO-B.CO.
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