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Is this Large Market Cap Stock target price reasonable for Novartis AG (NYSE:NVS) ?

The company in question is, Novartis AG (NYSE:NVS) currently with a stock price of 72.74 (-0.26% today). The market cap for Novartis AG is 192478.04, and is in the sector Healthcare, and Drug Manufacturers – Major industry. The target price for Novartis AG is 85.25. Currently Novartis AG is trading with a P/E of 26, and a forward P/E of 14.05. Average volume for Novartis AG is 2848.96 and so far today it is 1415400.

Performance in the last year for Novartis AG has been -2.04%. For EPS growth, Novartis AG has seen a growth of -2.80%, and is looking to grow in the next year to 10.43%. More long term stats show that EPS growth has been -5.80% over the last five years and could be 5.36% for the next five years. Novartis AG has seen sales growth quarter over quarter at -1.50%, with EPS growth quarter over quarter at -8.00%. The 20-day simple moving average is -1.87%, with the 200-day simple moving average coming to -1.32%.

Since the IPO date for Novartis AG on the 11/07/1996, Novartis AG has seen performance year to date to be 3.50%. With Novartis AG trading at 72.74, the dividend yield is 3.78%, and the EPS is 2.8.

So could Novartis AG, be undervalued? Well as said before P/E is 26. The PEG is 4.85, P/S is 3.89 and the P/B is at 2.31. The P/cash is 24.75, with P/free cash flow at 90.75.

Novartis AG ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 0.8. This is with long term debt/equity at 0.24, and total debt/equity at 0.32.

In terms of margins, Novartis AG has a gross margin of 65.10%, an operating margin of 16.40% and a profit margin of 13.60%.Payout ratio for Novartis AG is 96.30%. Return on assets come to 5.10% with return on investment coming to 7.30%.

Insider ownership for Novartis AG, is at 9.30% and institutional ownership comes to 10.60%. Outstanding shares are at 2646.11. While shares float is 2533.08. The float short is currently 0.15%, and short ratio is 1.35.

Graphs: Novartis AG NYSE: NVS | Thursday April 20, 2017

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Novartis AG NYSE: NVS

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Novartis AG NYSE: NVS

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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