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If you are wondering whether Novo Nordisk’s current share price reflects its true value, this breakdown will help you make sense of what the market might be pricing in.
The stock last closed at DKK 236.9, with recent returns of 2.6% over 7 days, a 4.4% decline over 30 days, and year-to-date and 1-year returns of 28.3% and 42.9% declines respectively, alongside a 19.6% gain over 5 years.
These mixed returns put the recent share price in context, suggesting that sentiment around Novo Nordisk has shifted over different time frames. News flow around the company, including ongoing attention on its role in the pharmaceuticals and biotech space, helps explain why investors are reassessing both its risks and long-term potential.
Novo Nordisk currently has a valuation score of 5/6, which sets up a closer look at how different valuation methods stack up for this stock, and why there may be an even more useful way to think about valuation by the end of this article.
Find out why Novo Nordisk’s -42.9% return over the last year is lagging behind its peers.
A Discounted Cash Flow, or DCF, model estimates what a business could be worth today by projecting its future cash flows and discounting them back to a present value using a required rate of return.
For Novo Nordisk, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about DKK 52.1b. Analysts provide detailed estimates for the next few years, and beyond that, Simply Wall St extends the projections to build a 10 year view. By 2030, projected free cash flow is DKK 111.1b, with intermediate annual projections in between those two points.
After discounting each of these future cash flows back to today, the model arrives at an estimated intrinsic value of DKK 739.32 per share. Compared with the recent share price of DKK 236.90, the DCF output suggests Novo Nordisk trades at a 68.0% discount to this estimate. On this model alone, the shares appear significantly undervalued.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Novo Nordisk is undervalued by 68.0%. Track this in your watchlist or portfolio, or discover 247 more high quality undervalued stocks.
NOVO B Discounted Cash Flow as at Apr 2026
For profitable companies, the P/E ratio is a useful way to see how much you are paying for each unit of current earnings. This makes it a straightforward cross check against the DCF result you just saw.
Story Continues
What counts as a “normal” P/E depends on how the market views a company’s growth outlook and risk profile. Higher expected earnings growth or lower perceived risk typically justify a higher multiple, while slower growth or higher risk tend to point to a lower one.
Novo Nordisk currently trades on a P/E of 10.26x. This sits below the Pharmaceuticals industry average of 21.43x and also below the peer average of 21.31x. Simply Wall St’s Fair Ratio for Novo Nordisk is 22.95x, which is its proprietary estimate of what the P/E could be given factors such as earnings growth, industry, profit margin, market cap and company specific risks.
The Fair Ratio is more tailored than a simple comparison with peers or the sector because it adjusts for those company specific drivers rather than assuming all firms in the group deserve the same multiple. Comparing the Fair Ratio of 22.95x with the current 10.26x suggests the shares trade below this model based estimate.
Result: UNDERVALUED
CPSE:NOVO B P/E Ratio as at Apr 2026
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Earlier it was mentioned that there is an even better way to understand valuation. This is where Narratives come in, as a way for you to attach a clear story to your numbers for Novo Nordisk, linking what you believe about its GLP 1 opportunity, competition, pricing and execution to explicit forecasts for revenue, earnings, margins and ultimately a fair value per share.
On Simply Wall St’s Community page, Narratives are simple tools that let you set those assumptions in a structured forecast, compare the resulting Fair Value to today’s price, and see in plain sight whether your story points to Novo Nordisk looking cheap, expensive or roughly in line with your expectations.
Because Narratives on the platform update automatically when new data, news or earnings arrive, your valuation view does not stay static. It refreshes in real time so you can reassess whether the gap between Fair Value and the current price still supports holding, adding or reducing exposure based on your own rules rather than headlines.
For example, one Novo Nordisk Narrative on the Community pegs Fair Value around DKK 287, while another at the optimistic end sits near DKK 1,036, and a more cautious view is closer to DKK 309. This shows how different investors can look at the same business model, GLP 1 market and risk profile yet reach very different conclusions about what the shares are worth today.
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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