Publicação
Equity research - Novartis AG
| Resumo: | Novartis AG (“Novartis”) is one of the top market players in the pharmaceutical industry, with a 2020 market cap of $215Bn and operations in 155 countries. The company is divided in two segments, Innovative Medicines which includes Gene Therapies and Oncology and Sandoz that focus on generic pharmaceuticals and biosimilars. The motivation for choosing this company and industry was because we are in a pandemic (Covid-19) and the world’s attention is focused on the pharmaceutical industrial to produce the vaccine. As it becomes more evident that is one of the most important industries in the world, I was curious to know how these companies operate and what they are doing to overcome the current situation. The main methods used for Novartis valuation were the DCF, APV and Market-Based Valuation Methods. The company has a BUY Recommendation, with a 2022 YE price target of $103,32, representing an upside potential of 21% from the Sep. 10th, 2021, closing price of $85,43, with medium risk. The current share price undervaluation is mainly due to some government-imposed industry-wide price reductions, some restrictions to access healthcare and to patent expiration, what can directly impact the business revenues. In terms of the new trends in the industry, Novartis is already using technology and digitalization across its operations and is working hard to be a global ESG leader. Moreover, the company has a dividend policy to increase the dividend every year, which is possible since the company has a solid CFO YoY. The reference date for this equity research is 2021. |
|---|---|
| Autores principais: | Sousa, Bruno Miguel Ranalli |
| Assunto: | Novartis AG Pharmaceutical Industry Medicines Innovative Medicines Sandoz Equity Research Valuation Mergers & Acquisitions Indústria Farmacêutica Medicamentos Medicamentos Inovadores Avaliação de Empresas Fusões e Aquisições |
| Ano: | 2021 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| _version_ | 1866811311830073344 |
|---|---|
| author | Sousa, Bruno Miguel Ranalli |
| author_facet | Sousa, Bruno Miguel Ranalli |
| author_role | author |
| contributor_name_str_mv | Vieira, Telmo Repositório Científico de Acesso Aberto da ULisboa |
| country_str | PT |
| creators_json_txt | [{\"Person.name\":\"Sousa, Bruno Miguel Ranalli\"}] |
| datacite.contributors.contributor.contributorName.fl_str_mv | Vieira, Telmo Repositório Científico de Acesso Aberto da ULisboa |
| datacite.creators.creator.creatorName.fl_str_mv | Sousa, Bruno Miguel Ranalli |
| datacite.date.Accepted.fl_str_mv | 2021-10-01T00:00:00Z |
| datacite.date.available.fl_str_mv | 2022-01-30T16:10:28Z |
| datacite.date.embargoed.fl_str_mv | 2022-01-30T16:10:28Z |
| datacite.rights.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| datacite.subjects.subject.fl_str_mv | Novartis AG Pharmaceutical Industry Medicines Innovative Medicines Sandoz Equity Research Valuation Mergers & Acquisitions Indústria Farmacêutica Medicamentos Medicamentos Inovadores Avaliação de Empresas Fusões e Aquisições |
| datacite.titles.title.fl_str_mv | Equity research - Novartis AG |
| dc.contributor.none.fl_str_mv | Vieira, Telmo Repositório Científico de Acesso Aberto da ULisboa |
| dc.creator.none.fl_str_mv | Sousa, Bruno Miguel Ranalli |
| dc.date.Accepted.fl_str_mv | 2021-10-01T00:00:00Z |
| dc.date.available.fl_str_mv | 2022-01-30T16:10:28Z |
| dc.date.embargoed.fl_str_mv | 2022-01-30T16:10:28Z |
| dc.format.none.fl_str_mv | application/pdf |
| dc.identifier.none.fl_str_mv | http://hdl.handle.net/10400.5/23315 |
| dc.language.none.fl_str_mv | eng |
| dc.publisher.none.fl_str_mv | Instituto Superior de Economia e Gestão |
| dc.rights.none.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| dc.subject.none.fl_str_mv | Novartis AG Pharmaceutical Industry Medicines Innovative Medicines Sandoz Equity Research Valuation Mergers & Acquisitions Indústria Farmacêutica Medicamentos Medicamentos Inovadores Avaliação de Empresas Fusões e Aquisições |
| dc.title.fl_str_mv | Equity research - Novartis AG |
| dc.type.none.fl_str_mv | http://purl.org/coar/resource_type/c_bdcc |
| description | Novartis AG (“Novartis”) is one of the top market players in the pharmaceutical industry, with a 2020 market cap of $215Bn and operations in 155 countries. The company is divided in two segments, Innovative Medicines which includes Gene Therapies and Oncology and Sandoz that focus on generic pharmaceuticals and biosimilars. The motivation for choosing this company and industry was because we are in a pandemic (Covid-19) and the world’s attention is focused on the pharmaceutical industrial to produce the vaccine. As it becomes more evident that is one of the most important industries in the world, I was curious to know how these companies operate and what they are doing to overcome the current situation. The main methods used for Novartis valuation were the DCF, APV and Market-Based Valuation Methods. The company has a BUY Recommendation, with a 2022 YE price target of $103,32, representing an upside potential of 21% from the Sep. 10th, 2021, closing price of $85,43, with medium risk. The current share price undervaluation is mainly due to some government-imposed industry-wide price reductions, some restrictions to access healthcare and to patent expiration, what can directly impact the business revenues. In terms of the new trends in the industry, Novartis is already using technology and digitalization across its operations and is working hard to be a global ESG leader. Moreover, the company has a dividend policy to increase the dividend every year, which is possible since the company has a solid CFO YoY. The reference date for this equity research is 2021. |
| dirty | 0 |
| eu_rights_str_mv | openAccess |
| format | masterThesis |
| fulltext.url.fl_str_mv | https://repositorio.ulisboa.pt/bitstreams/c1715612-3950-4429-86cd-0043bc425dc9/download |
| id | ul_f7ccd66160f99f3e55fc7d0c8a1e8a64 |
| identifier.url.fl_str_mv | http://hdl.handle.net/10400.5/23315 |
| instacron_str | ul |
| institution | Universidade de Lisboa |
| instname_str | Universidade de Lisboa |
| language | eng |
| network_acronym_str | ul |
| network_name_str | Repositório da Universidade de Lisboa |
| oai_identifier_str | oai:repositorio.ulisboa.pt:10400.5/23315 |
| organization_str_mv | urn:organizationAcronym:ul |
| person_str_mv | Sousa, Bruno Miguel Ranalli |
| publishDate | 2021 |
| publisher.none.fl_str_mv | Instituto Superior de Economia e Gestão |
| reponame_str | Repositório da Universidade de Lisboa |
| repository_id_str | urn:repositoryAcronym:ul |
| service_str_mv | urn:repositoryAcronym:ul |
| spelling | engInstituto Superior de Economia e Gestãopt_PTNovartis AG (“Novartis”) is one of the top market players in the pharmaceutical industry, with a 2020 market cap of $215Bn and operations in 155 countries. The company is divided in two segments, Innovative Medicines which includes Gene Therapies and Oncology and Sandoz that focus on generic pharmaceuticals and biosimilars. The motivation for choosing this company and industry was because we are in a pandemic (Covid-19) and the world’s attention is focused on the pharmaceutical industrial to produce the vaccine. As it becomes more evident that is one of the most important industries in the world, I was curious to know how these companies operate and what they are doing to overcome the current situation. The main methods used for Novartis valuation were the DCF, APV and Market-Based Valuation Methods. The company has a BUY Recommendation, with a 2022 YE price target of $103,32, representing an upside potential of 21% from the Sep. 10th, 2021, closing price of $85,43, with medium risk. The current share price undervaluation is mainly due to some government-imposed industry-wide price reductions, some restrictions to access healthcare and to patent expiration, what can directly impact the business revenues. In terms of the new trends in the industry, Novartis is already using technology and digitalization across its operations and is working hard to be a global ESG leader. Moreover, the company has a dividend policy to increase the dividend every year, which is possible since the company has a solid CFO YoY. The reference date for this equity research is 2021.application/pdfpt_PTEquity research - Novartis AGSousa, Bruno Miguel RanalliVieira, TelmoHostingInstitutionOrganizationalRepositório Científico de Acesso Aberto da ULisboae-mailmailto:repositorio@reitoria.ulisboa.ptrepositorio@reitoria.ulisboa.pt2022-01-30T16:10:28Z2021-102021-10-01T00:00:00ZHandlehttp://hdl.handle.net/10400.5/23315http://purl.org/coar/access_right/c_abf2open accessNovartis AGPharmaceutical IndustryMedicinesInnovative MedicinesSandozEquity ResearchValuationMergers & AcquisitionsIndústria FarmacêuticaMedicamentosMedicamentos InovadoresAvaliação de EmpresasFusões e Aquisições2894746 bytesliteraturehttp://purl.org/coar/resource_type/c_bdccmaster thesishttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://repositorio.ulisboa.pt/bitstreams/c1715612-3950-4429-86cd-0043bc425dc9/download |
| spellingShingle | Equity research - Novartis AG Sousa, Bruno Miguel Ranalli Novartis AG Pharmaceutical Industry Medicines Innovative Medicines Sandoz Equity Research Valuation Mergers & Acquisitions Indústria Farmacêutica Medicamentos Medicamentos Inovadores Avaliação de Empresas Fusões e Aquisições |
| status | SINGLETON |
| subject.fl_str_mv | Novartis AG Pharmaceutical Industry Medicines Innovative Medicines Sandoz Equity Research Valuation Mergers & Acquisitions Indústria Farmacêutica Medicamentos Medicamentos Inovadores Avaliação de Empresas Fusões e Aquisições |
| title | Equity research - Novartis AG |
| title_full | Equity research - Novartis AG |
| title_fullStr | Equity research - Novartis AG |
| title_full_unstemmed | Equity research - Novartis AG |
| title_short | Equity research - Novartis AG |
| title_sort | Equity research - Novartis AG |
| topic | Novartis AG Pharmaceutical Industry Medicines Innovative Medicines Sandoz Equity Research Valuation Mergers & Acquisitions Indústria Farmacêutica Medicamentos Medicamentos Inovadores Avaliação de Empresas Fusões e Aquisições |
| topic_facet | Novartis AG Pharmaceutical Industry Medicines Innovative Medicines Sandoz Equity Research Valuation Mergers & Acquisitions Indústria Farmacêutica Medicamentos Medicamentos Inovadores Avaliação de Empresas Fusões e Aquisições |
| url | http://hdl.handle.net/10400.5/23315 |
| visible | 1 |