Where will Novo Nordisk’s share be in 10 years?

The proportion of Novo Nordisk (NASDAQ: AAPL) is trading pretty high right now. The share price is again at a relatively high level of 103 EUR. Foolish investors know that it puts its price-to-earnings multiple well into its 30s and its dividend of just over 1%.

The key question is: What will Novo Nordisk achieve over a period of ten years? To grow into or beyond your own evaluation? Let us calculate very conservatively whether the stock could be a purchase. Or whether the risks outweigh the risks.

4 “Inflation-proof” shares to buy today! There is no doubt that inflation is skyrocketing. Investors are worried. Money that just sits in the bank loses value every year. But where should you invest your money? Here are 4 The Motley Fool editors’ favorite stocks to invest in as inflation rises. We early recommended some of the most profitable stocks of this generation, such as Shopify (+ 6,878%), Tesla (+ 10,714%) or MercadoLibre (+ 10,291%). Grab these 4 stocks while you still can. Just enter your email address below and request this free report immediately. Request the free analysis here now.

Novo Nordisk: Ten years from now!

The Novo Nordisk share at least has a good, timeless business model. With the diabetes market and a leading competitive position, there is stability and the opportunity to benefit from moderate growth. After all, the current forecasts assume that the number of cases will increase by 2045.

But let’s stay with the next few years: Novo Nordisk has a solid mix of different growth drivers. Blockbusters like Ozempic and Rybelsus, among others, should drive moderate growth. In times of inflation, management should be able to use some pricing power. New good products are probably also more expensive.

Although Novo Nordisk does not see earnings growth of up to 14% year-on-year in ten years and no revenue growth above the 20% mark, I conservatively expect 5% growth in earnings over a ten-year period. In this setting, management can increase earnings per. share for almost 35 Danish kroner according to my calculations. At a share price of DKK 776, the price-earnings ratio would then be 22.2. A very valuable insight.

Min take away!

Ten-year-old Novo Nordisk does not necessarily have to beat the market. We recognize that the current valuation may not lead to the major revaluation. At least not when earnings growth is 5% pa. It would be different if the management had to manage 10% pa. With a price-to-earnings ratio of then 14, valuation would be significantly cheaper.

The key question, however, is whether Novo Nordisk can do it. When I think conservatively, I do not necessarily see the chance that this proportion will remain the high-flyer. Nevertheless, solid, timeless returns seem to be possible in the long run. But the basic valuation suggests lots of earnings growth over the next many years. This means that the stock is under some pressure.

Our top stocks for 2022

There’s a company whose name gets a lot of buzz from analysts at The Motley Fool these days. It’s for us THE BEST INVESTMENT FOR 2022.

You could also benefit from it. To do this, you must first know all about this unique business. So now we have one free special report prepared, which introduces this company in detail.

Click here to download this report now for free.


Vincent owns shares in Novo Nordisk. The Broget Fool recommends Novo Nordisk.

Leave a Comment