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If you are wondering whether Novo Nordisk shares now offer value after a rough patch, this article walks through what the current price may be implying.
The stock last closed at DKK 237.45, with a 4.4% decline over 7 days, a 21.1% decline over 30 days and a 28.1% decline year to date, alongside a 53.2% decline over 1 year and a 53.5% decline over 3 years, set against an 18.3% gain over 5 years.
Recent coverage has focused on how these share price moves affect sentiment toward Novo Nordisk, including questions around whether earlier optimism may have gone too far and whether the current level better reflects long term expectations. This context is important because it shapes how investors interpret any valuation signal, whether based on fundamentals, market multiples or cash flow models.
Novo Nordisk currently holds a valuation score of 5 out of 6, and the rest of this article looks at what different valuation methods say about that score, before finishing with a framework that can help you make sense of all these signals together.
Find out why Novo Nordisk’s -53.2% return over the last year is lagging behind its peers.
A Discounted Cash Flow, or DCF, model estimates what a company could be worth today by projecting its future cash flows and discounting them back to a present value using a required return.
For Novo Nordisk, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections in DKK. The latest twelve month free cash flow is DKK 52,097.16m, or about DKK 52.1b. Analyst inputs extend through 2030, with projected free cash flow of DKK 111,085.5m in 2030, around DKK 111.1b, and further years extrapolated by Simply Wall St using tapered growth assumptions.
These projected and extrapolated cash flows, once discounted, produce an estimated intrinsic value of DKK 738.89 per share. Compared with the recent share price of DKK 237.45, the DCF output implies a 67.9% discount, which points to the shares trading well below this model’s estimate of value.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Novo Nordisk is undervalued by 67.9%. Track this in your watchlist or portfolio, or discover 235 more high quality undervalued stocks.
NOVO B Discounted Cash Flow as at Mar 2026
For a profitable company like Novo Nordisk, the P/E ratio is a useful yardstick because it ties the share price directly to the earnings that support it. Investors usually expect a higher or lower P/E depending on what they think about a company’s future growth and the risks around those earnings, so there is no single “right” P/E level.
Story Continues
Novo Nordisk currently trades on a P/E of 10.3x. That sits well below the Pharmaceuticals industry average of 21.0x and the peer average of 21.6x, so the stock is pricing in a lower earnings multiple than many sector peers.
Simply Wall St’s Fair Ratio for Novo Nordisk is 23.2x. This is a proprietary estimate of what the P/E could be given factors such as the company’s earnings growth profile, industry, profit margins, market cap and risk characteristics. Because it explicitly adjusts for these company specific drivers, the Fair Ratio can be more informative than a simple comparison against broad industry or peer averages.
Comparing the Fair Ratio of 23.2x with the actual P/E of 10.3x suggests the shares are trading below this model based reference point.
Result: UNDERVALUED
CPSE:NOVO B P/E Ratio as at Mar 2026
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Earlier the article pointed out that there is an even better way to think about valuation, and that is where Narratives come in as a simple way for you to attach a clear story to the numbers you see for Novo Nordisk.
A Narrative is your view on how the company’s story plays out, tied directly to specific assumptions about fair value, future revenue, earnings and profit margins, so you are not just reacting to the share price but working from a coherent forecast.
On Simply Wall St’s Community page, Narratives are an accessible tool used by millions of investors. They allow you to pick or build a story for Novo Nordisk, connect that story to a financial model, then see the implied fair value next to today’s DKK 237.45 share price to help you judge whether the stock suits your plan to buy, hold or sell.
These Narratives update automatically when new data, news or earnings arrive, so your valuation view stays aligned with fresh information rather than a static spreadsheet.
For example, one Novo Nordisk Narrative currently applies a fair value of DKK 287.0 using a margin profile of 33.1% and a future P/E of 15.9x. Another Narrative at the higher end applies a fair value of DKK 1,036.18 with a 40.0% margin and a future P/E of 30.0x, illustrating how different but clearly defined stories can lead to very different conclusions about what the same company is worth.
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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