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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 75.58 (-0.67% today). The market cap for Novartis AG is 196404.46, and is in the sector Healthcare, and Drug Manufacturers – Major industry. The target price for Novartis AG is 95.16. Currently Novartis AG is trading with a P/E of 27.33, and a forward P/E of 15.05. Average volume for Novartis AG is 1587.14 and so far today it is 3016400.

Performance in the last year for Novartis AG has been -17.37%. For EPS growth, Novartis AG has seen a growth of -33.30%, and is looking to grow in the next year to 6.33%. More long term stats show that EPS growth has been -7.50% over the last five years and could be 6.03% for the next five years. Novartis AG has seen sales growth quarter over quarter at -1.70%, with EPS growth quarter over quarter at -0.80%. The 20-day simple moving average is -5.60%, with the 200-day simple moving average coming to -2.65%.

Since the IPO date for Novartis AG on the 11/7/1996, Novartis AG has seen performance year to date to be -8.73%. With Novartis AG trading at 75.58, the dividend yield is 3.60%, and the EPS is 2.77.

So could Novartis AG, be undervalued? Well as said before P/E is 27.33. The PEG is 4.53, P/S is 3.95 and the P/B is at 2.48. The P/cash is *TBA, with P/free cash flow at 99.04.

Novartis AG ability to deal with debt shows that the current ratio is 0.9, and the quick ratio is 0.6. This is with long term debt/equity at 0.22, and total debt/equity at 0.36.

In terms of margins, Novartis AG has a gross margin of 65.00%, an operating margin of 16.90% and a profit margin of 13.60%.Payout ratio for Novartis AG is 95.20%. Return on assets come to 5.10% with return on investment coming to 7.80%.

Insider ownership for Novartis AG, is at 9.30% and institutional ownership comes to 10.00%. Outstanding shares are at 2598.63. While shares float is 2525.92. The float short is currently 0.15%, and short ratio is 2.39.

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.

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Stephen Butters

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