Novartis(US:NVS) Financial Modeling Prepยท2025-10-27 08:00Core Viewpoint - Novartis AG is preparing to release its third-quarter 2025 earnings, with market expectations indicating a solid financial performance in terms of earnings per share and revenue [1][2]. Financial Performance Expectations - Wall Street anticipates Novartis to report earnings per share (EPS) of $2.26, while analysts project a slightly higher EPS of $2.28 [2][6]. - The revenue forecast is approximately $13.87 billion, with analysts estimating a close $13.7 billion [2][6]. Stock Performance and Valuation - Novartis' stock opened at $130.48, with a market capitalization of $275.64 billion [3]. - The stock has a price-to-earnings (P/E) ratio of 18.99, indicating investor willingness to pay for earnings [3][6]. - The beta of 0.64 suggests moderate volatility compared to the market, indicating less likelihood of large price swings [3][6]. Financial Health Metrics - The current ratio is 0.82 and the quick ratio is 0.62, reflecting the company's ability to cover short-term liabilities [4]. - The debt-to-equity ratio of 0.53 shows a balanced approach to financing, with moderate debt levels compared to equity [4]. Moving Averages and Trends - The stock's fifty-day simple moving average is $127.56, while the 200-day average is $119.49, indicating a positive trend over the past year [4]. Valuation Metrics - Novartis has a price-to-sales ratio of 4.64 and an enterprise value to sales ratio of 5.11, reflecting the market's view of its revenue and total worth [5]. - The enterprise value to operating cash flow ratio is 13.44, highlighting the company's cash flow efficiency [5]. - An earnings yield of 3.79% provides insight into the return on investment for shareholders [5].