Novo Nordisk Stock Analysis (September 2023)

Should you buy Novo Nordisk stock? Join 10,000 investors: https://www.overlookedalpha.com Weight loss drugs Ozempic and Wegovy are booming right now and that has sent manufacturer Novo Nordisk stock up 80% over the last 12 months. At the current share price, the company is valued at 430 billion US dollars making it one of the largest companies in Europe. Taking into account cash, investments and long-term debt the enterprise value is 404 billion. Meanwhile, Novo Nordisk has made 29 billion of revenue over the last 12 months, 9.6 billion of net income and 14 billion of adjusted ebitda. That means the stock is valued at 14 times revenue, 45 times earning and Novo Nordisk also pays a dividend of 0.9%. Novo Nordisk’s PE ratio is the highest its been in 20 years and its not hard to see why. Sales of GLP1 weight loss drugs are rising so fast that suppliers are struggling to keep up. Prices are high too. Wegovy costs over $1300 for a 28-day supply. It’s even having an significant effect on the Danish economy. Novo Nordisk raised its revenue outlook for the full year implying 30% growth. If that growth continues into next year, revenues could top 43 billion and net income could hit 14 billion. So Novo Nordisk is probably trading at about 31 times next years earnings. #stockstowatch #investing #stocks #overlookedalpha