NVONEUTRAL

NVO PEG Ratio Analysis

0.03x

Higher than 0% of Healthcare sector peers

Updated 190h ago·SEC filings & market data

Key Takeaway

The PEG ratio divides the stock’s price-to-earnings ratio by its expected earnings growth rate; a PEG of 0.03x means the stock is priced at only 3% of its projected growth, indicating extremely low valuation relative to growth expectations.

Sector Performance

0th percentile

NVO

0.03x

Sector Median

0.66x

Sector Avg

1.56x

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Deep Analysis

The PEG ratio divides the stock’s price-to-earnings ratio by its expected earnings growth rate; a PEG of 0.03x means the stock is priced at only 3% of its projected growth, indicating extremely low valuation relative to growth expectations.

Among Healthcare sector peers, NVO’s 0.03x PEG is far below the sector median of 0.66x and places it at the 0th percentile — the lowest in the peer group. No year-over-year or quarter-over-quarter changes are available (N/A), so trend direction cannot be assessed. The combination of an ultra-low level and no trend data implies either a potential deep-value opportunity or a sign of market skepticism about future growth, but without historical context the risk is unclear. This metric neither supports nor contradicts the overall NEUTRAL verdict — the extreme PEG signals a need for deeper due diligence on growth assumptions, but does not alone justify a bullish or bearish stance.

Frequently Asked Questions

What does the PEG Ratio tell investors about NVO?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

How does NVO's PEG Ratio compare to its sector?

NVO's PEG Ratio of 0.03x compares to a Healthcare sector median of 0.66x, placing it in the 0th percentile.

Who are NVO's closest peers by PEG Ratio?

The closest Healthcare peers by PEG Ratio include: ZBH (0.70x), TECH (0.62x), RHHBY (0.77x), RVTY (0.40x), A (0.40x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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NVO

0.03x

Sector Median

0.66x

Sector Avg

1.56x

How NVO's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.