Valuation of Novo Nordisk A/S

Rasmus Eitmann & Martin Hvid Henriksen

Student thesis: Master thesis


This thesis aims to assess the fair value of a Novo Nordisk A/S (NOVO-B) share on April 24, 2017 and finds it to be 318.0 DKK. The primary competitive driver in the pharmaceutical industry is having the most well-developed product. Novo Nordisk is the global market leader in diabetes care and has leading positions in multiple biopharmaceutical markets. Novo is well positioned to maintain or further its leading position, supported by a strong portfolio of products, effective commercial operations and a strong R&D pipeline. The introduction of lower-priced biosimilar insulins, increased bargaining power of buyers and technological advances from competitors represent major threats to Novo’s future profitability. Therefore, Novo Nordisk’s future revenue growth will be driven mainly by increases in volume, so Novo’s historically high profitability is expected to gradually decrease but remain at a level significantly above the industry average.

EducationsMSc in Applied Economics and Finance, (Graduate Programme) Final ThesisMSc in Finance and Investments, (Graduate Programme) Final Thesis
Publication date2017
Number of pages150