Intrinsic value of Novo Nordisk ADR - NVO

Previous Close

$46.41

  Intrinsic Value

$44.21

stock screener

  Rating & Target

hold

-5%

  Value-price divergence*

+287%

Previous close

$46.41

 
Intrinsic value

$44.21

 
Up/down potential

-5%

 
Rating

hold

 
Value-price divergence*

+287%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of NVO stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 92.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  3.57
  4.60
  4.64
  4.68
  4.71
  4.74
  4.76
  4.79
  4.81
  4.83
  4.85
  4.86
  4.87
  4.89
  4.90
  4.91
  4.92
  4.93
  4.93
  4.94
  4.95
  4.95
  4.96
  4.96
  4.96
  4.97
  4.97
  4.97
  4.98
  4.98
  4.98
Revenue, $m
  15,873
  16,603
  17,374
  18,186
  19,042
  19,944
  20,894
  21,895
  22,948
  24,055
  25,221
  26,447
  27,736
  29,091
  30,516
  32,014
  33,589
  35,243
  36,982
  38,809
  40,728
  42,745
  44,863
  47,089
  49,427
  51,882
  54,461
  57,170
  60,016
  63,004
  66,142
Variable operating expenses, $m
 
  8,999
  9,416
  9,857
  10,321
  10,810
  11,325
  11,867
  12,438
  13,038
  13,670
  14,334
  15,033
  15,768
  16,540
  17,352
  18,205
  19,102
  20,044
  21,034
  22,075
  23,168
  24,316
  25,522
  26,789
  28,120
  29,518
  30,986
  32,528
  34,148
  35,849
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  8,995
  8,999
  9,416
  9,857
  10,321
  10,810
  11,325
  11,867
  12,438
  13,038
  13,670
  14,334
  15,033
  15,768
  16,540
  17,352
  18,205
  19,102
  20,044
  21,034
  22,075
  23,168
  24,316
  25,522
  26,789
  28,120
  29,518
  30,986
  32,528
  34,148
  35,849
Operating income, $m
  6,877
  7,604
  7,957
  8,329
  8,721
  9,135
  9,570
  10,028
  10,510
  11,017
  11,551
  12,113
  12,703
  13,324
  13,977
  14,663
  15,384
  16,141
  16,938
  17,774
  18,654
  19,577
  20,547
  21,567
  22,637
  23,762
  24,943
  26,184
  27,487
  28,856
  30,293
EBITDA, $m
  7,330
  8,054
  8,428
  8,822
  9,237
  9,675
  10,136
  10,621
  11,132
  11,669
  12,235
  12,829
  13,455
  14,112
  14,804
  15,530
  16,294
  17,096
  17,940
  18,826
  19,757
  20,736
  21,763
  22,843
  23,977
  25,168
  26,419
  27,733
  29,114
  30,563
  32,086
Interest expense (income), $m
  9
  0
  33
  67
  104
  143
  183
  226
  271
  319
  369
  421
  477
  535
  596
  660
  728
  799
  874
  952
  1,035
  1,121
  1,212
  1,308
  1,408
  1,514
  1,625
  1,741
  1,863
  1,992
  2,127
Earnings before tax, $m
  6,787
  7,604
  7,925
  8,262
  8,617
  8,992
  9,386
  9,802
  10,239
  10,699
  11,182
  11,691
  12,226
  12,789
  13,380
  14,002
  14,656
  15,342
  16,064
  16,822
  17,619
  18,456
  19,335
  20,259
  21,229
  22,248
  23,319
  24,443
  25,624
  26,864
  28,166
Tax expense, $m
  1,402
  2,053
  2,140
  2,231
  2,327
  2,428
  2,534
  2,646
  2,764
  2,889
  3,019
  3,157
  3,301
  3,453
  3,613
  3,781
  3,957
  4,142
  4,337
  4,542
  4,757
  4,983
  5,220
  5,470
  5,732
  6,007
  6,296
  6,600
  6,918
  7,253
  7,605
Net income, $m
  5,385
  5,551
  5,785
  6,031
  6,291
  6,564
  6,852
  7,155
  7,474
  7,810
  8,163
  8,535
  8,925
  9,336
  9,768
  10,222
  10,699
  11,200
  11,727
  12,280
  12,862
  13,473
  14,115
  14,789
  15,497
  16,241
  17,023
  17,843
  18,705
  19,611
  20,561

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,939
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  13,851
  11,411
  11,941
  12,499
  13,087
  13,707
  14,360
  15,048
  15,772
  16,533
  17,334
  18,177
  19,063
  19,994
  20,973
  22,003
  23,085
  24,222
  25,417
  26,673
  27,992
  29,378
  30,834
  32,363
  33,970
  35,658
  37,431
  39,292
  41,248
  43,302
  45,459
Adjusted assets (=assets-cash), $m
  10,912
  11,411
  11,941
  12,499
  13,087
  13,707
  14,360
  15,048
  15,772
  16,533
  17,334
  18,177
  19,063
  19,994
  20,973
  22,003
  23,085
  24,222
  25,417
  26,673
  27,992
  29,378
  30,834
  32,363
  33,970
  35,658
  37,431
  39,292
  41,248
  43,302
  45,459
Revenue / Adjusted assets
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
  1.455
Average production assets, $m
  4,302
  4,499
  4,708
  4,928
  5,160
  5,405
  5,662
  5,933
  6,219
  6,519
  6,835
  7,167
  7,516
  7,884
  8,270
  8,676
  9,103
  9,551
  10,022
  10,517
  11,037
  11,584
  12,158
  12,761
  13,395
  14,060
  14,759
  15,493
  16,264
  17,074
  17,925
Working capital, $m
  1,751
  -1,212
  -1,268
  -1,328
  -1,390
  -1,456
  -1,525
  -1,598
  -1,675
  -1,756
  -1,841
  -1,931
  -2,025
  -2,124
  -2,228
  -2,337
  -2,452
  -2,573
  -2,700
  -2,833
  -2,973
  -3,120
  -3,275
  -3,437
  -3,608
  -3,787
  -3,976
  -4,173
  -4,381
  -4,599
  -4,828
Total debt, $m
  33
  335
  694
  1,072
  1,470
  1,890
  2,332
  2,797
  3,287
  3,803
  4,345
  4,916
  5,515
  6,146
  6,809
  7,506
  8,239
  9,008
  9,817
  10,667
  11,561
  12,499
  13,485
  14,520
  15,608
  16,750
  17,950
  19,211
  20,535
  21,925
  23,385
Total liabilities, $m
  7,422
  7,725
  8,084
  8,462
  8,860
  9,280
  9,722
  10,187
  10,677
  11,193
  11,735
  12,306
  12,905
  13,536
  14,199
  14,896
  15,629
  16,398
  17,207
  18,057
  18,951
  19,889
  20,875
  21,910
  22,998
  24,140
  25,340
  26,601
  27,925
  29,315
  30,775
Total equity, $m
  6,428
  3,686
  3,857
  4,037
  4,227
  4,428
  4,638
  4,860
  5,094
  5,340
  5,599
  5,871
  6,157
  6,458
  6,774
  7,107
  7,456
  7,824
  8,210
  8,615
  9,041
  9,489
  9,959
  10,453
  10,972
  11,517
  12,090
  12,691
  13,323
  13,986
  14,683
Total liabilities and equity, $m
  13,850
  11,411
  11,941
  12,499
  13,087
  13,708
  14,360
  15,047
  15,771
  16,533
  17,334
  18,177
  19,062
  19,994
  20,973
  22,003
  23,085
  24,222
  25,417
  26,672
  27,992
  29,378
  30,834
  32,363
  33,970
  35,657
  37,430
  39,292
  41,248
  43,301
  45,458
Debt-to-equity ratio
  0.005
  0.090
  0.180
  0.270
  0.350
  0.430
  0.500
  0.580
  0.650
  0.710
  0.780
  0.840
  0.900
  0.950
  1.010
  1.060
  1.100
  1.150
  1.200
  1.240
  1.280
  1.320
  1.350
  1.390
  1.420
  1.450
  1.480
  1.510
  1.540
  1.570
  1.590
Adjusted equity ratio
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323
  0.323

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  5,385
  5,551
  5,785
  6,031
  6,291
  6,564
  6,852
  7,155
  7,474
  7,810
  8,163
  8,535
  8,925
  9,336
  9,768
  10,222
  10,699
  11,200
  11,727
  12,280
  12,862
  13,473
  14,115
  14,789
  15,497
  16,241
  17,023
  17,843
  18,705
  19,611
  20,561
Depreciation, amort., depletion, $m
  453
  450
  471
  493
  516
  540
  566
  593
  622
  652
  683
  717
  752
  788
  827
  868
  910
  955
  1,002
  1,052
  1,104
  1,158
  1,216
  1,276
  1,339
  1,406
  1,476
  1,549
  1,626
  1,707
  1,792
Funds from operations, $m
  5,930
  6,001
  6,256
  6,524
  6,807
  7,105
  7,418
  7,749
  8,096
  8,462
  8,847
  9,251
  9,677
  10,124
  10,595
  11,089
  11,609
  12,155
  12,729
  13,332
  13,965
  14,631
  15,330
  16,065
  16,837
  17,647
  18,498
  19,393
  20,332
  21,318
  22,354
Change in working capital, $m
  -931
  -53
  -56
  -59
  -63
  -66
  -69
  -73
  -77
  -81
  -85
  -89
  -94
  -99
  -104
  -109
  -115
  -121
  -127
  -133
  -140
  -147
  -155
  -162
  -171
  -179
  -188
  -198
  -208
  -218
  -229
Cash from operations, $m
  6,861
  6,054
  6,312
  6,583
  6,869
  7,170
  7,488
  7,822
  8,173
  8,543
  8,932
  9,341
  9,771
  10,223
  10,699
  11,198
  11,724
  12,276
  12,856
  13,465
  14,106
  14,778
  15,485
  16,227
  17,007
  17,826
  18,687
  19,590
  20,539
  21,536
  22,583
Maintenance CAPEX, $m
  0
  -430
  -450
  -471
  -493
  -516
  -540
  -566
  -593
  -622
  -652
  -683
  -717
  -752
  -788
  -827
  -868
  -910
  -955
  -1,002
  -1,052
  -1,104
  -1,158
  -1,216
  -1,276
  -1,339
  -1,406
  -1,476
  -1,549
  -1,626
  -1,707
New CAPEX, $m
  -1,174
  -198
  -209
  -220
  -232
  -244
  -257
  -271
  -285
  -300
  -316
  -332
  -349
  -367
  -386
  -406
  -427
  -448
  -471
  -495
  -520
  -546
  -574
  -603
  -634
  -665
  -699
  -734
  -771
  -810
  -850
Cash from investing activities, $m
  -964
  -628
  -659
  -691
  -725
  -760
  -797
  -837
  -878
  -922
  -968
  -1,015
  -1,066
  -1,119
  -1,174
  -1,233
  -1,295
  -1,358
  -1,426
  -1,497
  -1,572
  -1,650
  -1,732
  -1,819
  -1,910
  -2,004
  -2,105
  -2,210
  -2,320
  -2,436
  -2,557
Free cash flow, $m
  5,897
  5,426
  5,653
  5,892
  6,144
  6,410
  6,690
  6,984
  7,294
  7,621
  7,964
  8,325
  8,705
  9,104
  9,524
  9,966
  10,429
  10,917
  11,429
  11,968
  12,534
  13,128
  13,753
  14,409
  15,098
  15,821
  16,582
  17,380
  18,219
  19,100
  20,025
Issuance/(repayment) of debt, $m
  0
  335
  358
  378
  398
  420
  442
  465
  490
  515
  542
  570
  600
  631
  663
  697
  733
  770
  809
  850
  893
  938
  986
  1,036
  1,088
  1,143
  1,200
  1,260
  1,324
  1,390
  1,460
Issuance/(repurchase) of shares, $m
  -2,138
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -2,138
  335
  358
  378
  398
  420
  442
  465
  490
  515
  542
  570
  600
  631
  663
  697
  733
  770
  809
  850
  893
  938
  986
  1,036
  1,088
  1,143
  1,200
  1,260
  1,324
  1,390
  1,460
Total cash flow (excl. dividends), $m
  3,755
  5,762
  6,012
  6,270
  6,543
  6,830
  7,132
  7,450
  7,784
  8,136
  8,506
  8,895
  9,305
  9,735
  10,187
  10,662
  11,162
  11,687
  12,238
  12,818
  13,427
  14,066
  14,738
  15,444
  16,185
  16,964
  17,782
  18,641
  19,543
  20,490
  21,485
Retained Cash Flow (-), $m
  242
  -164
  -171
  -180
  -190
  -200
  -211
  -222
  -234
  -246
  -259
  -272
  -286
  -301
  -316
  -333
  -349
  -367
  -386
  -406
  -426
  -448
  -470
  -494
  -519
  -545
  -573
  -601
  -632
  -663
  -697
Prev. year cash balance distribution, $m
 
  2,906
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  8,504
  5,841
  6,090
  6,353
  6,629
  6,921
  7,228
  7,550
  7,890
  8,247
  8,623
  9,019
  9,434
  9,871
  10,330
  10,813
  11,320
  11,853
  12,412
  13,001
  13,619
  14,268
  14,950
  15,666
  16,419
  17,209
  18,039
  18,911
  19,827
  20,789
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  8,153
  5,347
  5,300
  5,231
  5,139
  5,023
  4,883
  4,719
  4,532
  4,324
  4,095
  3,849
  3,587
  3,314
  3,033
  2,748
  2,463
  2,183
  1,911
  1,652
  1,409
  1,184
  980
  798
  639
  502
  387
  293
  216
  157
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Novo Nordisk A/S, a healthcare company, engages in the discovery, development, manufacture, and marketing of pharmaceutical products worldwide. It operates in two segments, Diabetes and Obesity Care, and Biopharmaceuticals. The Diabetes and Obesity Care segment provides insulins, GLP-1 analog, and oral anti-diabetic drugs, as well as other protein related products comprising glucagon, protein related delivery systems, and needles. The Biopharmaceuticals segment offers products in the areas of haemophilia care, growth hormone therapy, and hormone replacement therapy. The company markets and distributes its products through distributors and independent agents. Novo Nordisk A/S was founded in 1925 and is headquartered in Bagsvaerd, Denmark.

FINANCIAL RATIOS  of  Novo Nordisk ADR (NVO)

Valuation Ratios
P/E Ratio 21.6
Price to Sales 7.3
Price to Book 18.1
Price to Tangible Book
Price to Cash Flow 16.9
Price to Free Cash Flow 20.4
Growth Rates
Sales Growth Rate 3.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 29%
Cap. Spend. - 3 Yr. Gr. Rate 17.8%
Financial Strength
Quick Ratio 89
Current Ratio 0
LT Debt to Equity 0%
Total Debt to Equity 0.5%
Interest Coverage 755
Management Effectiveness
Return On Assets 40.1%
Ret/ On Assets - 3 Yr. Avg. 39.2%
Return On Total Capital 81.1%
Ret/ On T. Cap. - 3 Yr. Avg. 74.2%
Return On Equity 82.2%
Return On Equity - 3 Yr. Avg. 75.3%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 84.6%
Gross Margin - 3 Yr. Avg. 84.4%
EBITDA Margin 45.7%
EBITDA Margin - 3 Yr. Avg. 43.7%
Operating Margin 43.3%
Oper. Margin - 3 Yr. Avg. 42.7%
Pre-Tax Margin 42.8%
Pre-Tax Margin - 3 Yr. Avg. 40.5%
Net Profit Margin 33.9%
Net Profit Margin - 3 Yr. Avg. 32%
Effective Tax Rate 20.7%
Eff/ Tax Rate - 3 Yr. Avg. 20.9%
Payout Ratio 62.8%

NVO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NVO stock intrinsic value calculation we used $15873 million for the last fiscal year's total revenue generated by Novo Nordisk ADR. The default revenue input number comes from 2016 income statement of Novo Nordisk ADR. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our NVO stock valuation model: a) initial revenue growth rate of 4.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for NVO is calculated based on our internal credit rating of Novo Nordisk ADR, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Novo Nordisk ADR.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of NVO stock the variable cost ratio is equal to 54.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for NVO stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 9.7% for Novo Nordisk ADR.

Corporate tax rate of 27% is the nominal tax rate for Novo Nordisk ADR. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the NVO stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for NVO are equal to 27.1%.

Life of production assets of 10 years is the average useful life of capital assets used in Novo Nordisk ADR operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for NVO is equal to -7.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $6428 million for Novo Nordisk ADR - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 1998.86 million for Novo Nordisk ADR is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Novo Nordisk ADR at the current share price and the inputted number of shares is $92.8 billion.

RELATED COMPANIES Price Int.Val. Rating
TEVA Teva Pharmaceu 17.49 70.59  str.buy
SNY Sanofi ADR 48.43 50.76  hold
LLY Eli Lilly 80.69 94.86  hold

COMPANY NEWS

▶ Novo Nordisk's diabetes drug succeeds in key trial   [Aug-16-17 06:36PM  Reuters]
▶ Novo Nordisk A/S Continues Its Comeback   [Aug-14-17 04:15PM  Motley Fool]
▶ Novo Nordisk beats 2Q profit forecasts   [Aug-10-17 08:22PM  Associated Press]
▶ Novo Ceo Is Looking at Targets in M&A Hot Space   [10:47AM  Bloomberg Video]
▶ High-Quality Stocks: Priceline, Nike, Novo Nordisk   [Jul-28-17 03:46PM  GuruFocus.com]
▶ Eli Lilly: The Competition is Just Too Darn Intense!   [Jul-26-17 11:23AM  Barrons.com]
▶ Why Eli Lilly Is Gouging Diabetes Drug Share From Dow's J&J, Others   [Jul-10-17 05:33PM  Investor's Business Daily]
▶ Performance of Novo Nordisk Stock in 2Q17   [04:05PM  Market Realist]
▶ Johnson & Johnsons Pharmaceuticals Business in 1Q17   [Jul-04-17 10:37AM  Market Realist]
▶ ETFs with exposure to Novo Nordisk A/S : July 3, 2017   [Jul-03-17 03:34PM  Capital Cube]
▶ The Crazy Math Behind Drug Prices   [Jun-29-17 12:00PM  Bloomberg]
▶ ETFs with exposure to Novo Nordisk A/S : June 19, 2017   [Jun-19-17 03:50PM  Capital Cube]
▶ Why Novo Nordisk A/S (ADR) Jumped 10.6% In May   [Jun-10-17 06:07AM  Motley Fool]
▶ Biotech And Pharma Industry And Stock News   [May-23-17 05:11PM  Investor's Business Daily]
▶ The 3 Best Obesity-Drug Stocks to Buy in 2017   [May-19-17 08:04AM  Motley Fool]
▶ Novo Nordisk Sees More Competition in U.S. Drug Prices   [May-10-17 04:23AM  Bloomberg Video]
▶ Novo Nordisk A/S Jumps Over Its Lowered Bar   [May-04-17 04:19PM  Motley Fool]
▶ [$$] Novo Nordisk Struggles to Raise Prices   [May-03-17 05:34PM  The Wall Street Journal]
▶ Novo Nordisk beats 1Q profit forecasts   [05:02AM  Associated Press]
▶ Bullish and Bearish Reversals for This Week   [May-01-17 01:15PM  TheStreet.com]
▶ 5 Big Drugmakers With Important Catalysts in May   [Apr-30-17 11:41AM  Motley Fool]
▶ 3 Beaten-Up Healthcare Stocks: Are They Bargains?   [Apr-19-17 09:21AM  Motley Fool]
▶ 5 Pharmaceutical Stocks With the Most Reliable Dividends   [Apr-09-17 07:22AM  Motley Fool]
▶ [$$] The Charms of Bayer and Novo Nordisk   [Apr-08-17 12:03AM  Barrons.com]
▶ Understanding Sanofis Valuation Compared to Peers   [Mar-31-17 03:29PM  Market Realist]
Stock chart of NVO Financial statements of NVO
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.