Novartis Ag Adr Stock Alpha and Beta Analysis

NVS Stock  USD 95.88  0.61  0.64%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Novartis AG ADR. It also helps investors analyze the systematic and unsystematic risks associated with investing in Novartis over a specified time horizon. Remember, high Novartis' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Novartis' market risk premium analysis include:
Beta
0.4
Alpha
(0.03)
Risk
1.08
Sharpe Ratio
(0.02)
Expected Return
(0.02)
Please note that although Novartis alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, Novartis did 0.03  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Novartis AG ADR stock's relative risk over its benchmark. Novartis AG ADR has a beta of 0.40  . As returns on the market increase, Novartis' returns are expected to increase less than the market. However, during the bear market, the loss of holding Novartis is expected to be smaller as well. Enterprise Value Multiple is likely to gain to 12.87 in 2024, whereas Price Book Value Ratio is likely to drop 3.07 in 2024.

Novartis Quarterly Cash And Equivalents

12.4 Billion

Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out Novartis Backtesting, Novartis Valuation, Novartis Correlation, Novartis Hype Analysis, Novartis Volatility, Novartis History and analyze Novartis Performance.

Novartis Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Novartis market risk premium is the additional return an investor will receive from holding Novartis long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Novartis. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Novartis' performance over market.
α-0.03   β0.40

Novartis expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Novartis' Buy-and-hold return. Our buy-and-hold chart shows how Novartis performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Novartis Market Price Analysis

Market price analysis indicators help investors to evaluate how Novartis stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Novartis shares will generate the highest return on investment. By understating and applying Novartis stock market price indicators, traders can identify Novartis position entry and exit signals to maximize returns.

Novartis Return and Market Media

The median price of Novartis for the period between Fri, Dec 29, 2023 and Thu, Mar 28, 2024 is 99.02 with a coefficient of variation of 3.04. The daily time series for the period is distributed with a sample standard deviation of 3.02, arithmetic mean of 99.38, and mean deviation of 2.56. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
       Timeline  
1
Karyopharm Therapeutics Q4 2023 Earnings Call Transcript
02/29/2024
2
REGENXBIO ANNOUNCES NEW POSITIVE INITIAL EFFICACY DATA FROM AFFINITY DUCHENNE TRIAL
03/05/2024
3
Eli Lillys anti-vanity ad campaign for Oscars
03/08/2024
4
Novartis Stock Dips While Market Gains Key Facts
03/12/2024
5
VALEO PHARMA REPORTS FIRST QUARTER 2024 RESULTS
03/14/2024
6
Novartis Increases Yet Falls Behind Market What Investors Need to Know
03/19/2024
7
BioNTech names new chief commercial officer ahead of launches
03/20/2024
8
TOLREMO Appoints Industry VeteransJeff Jonker and Mike Sherman to Board of Directors
03/21/2024
9
Listeriosis Market Projected for Growth by 2032, estimates DelveInsight Emergent Bio Solution, Pfizer, GlaxoSmithKline
03/22/2024
10
Novartis Declines More Than Market Some Information for Investors
03/25/2024

About Novartis Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Novartis or other stocks. Alpha measures the amount that position in Novartis AG ADR has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2021 2022 2024 (projected)
Price Earnings Ratio7.7326.9213.62
Short Term Coverage Ratios2.292.31.51

Novartis Upcoming Company Events

As portrayed in its financial statements, the presentation of Novartis' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Novartis' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Novartis' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Novartis. Please utilize our Beneish M Score to check the likelihood of Novartis' management manipulating its earnings.
31st of January 2024
Upcoming Quarterly Report
View
23rd of April 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
31st of January 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View

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When determining whether Novartis AG ADR is a strong investment it is important to analyze Novartis' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Novartis' future performance. For an informed investment choice regarding Novartis Stock, refer to the following important reports:
Check out Novartis Backtesting, Novartis Valuation, Novartis Correlation, Novartis Hype Analysis, Novartis Volatility, Novartis History and analyze Novartis Performance.
You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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When running Novartis' price analysis, check to measure Novartis' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Novartis is operating at the current time. Most of Novartis' value examination focuses on studying past and present price action to predict the probability of Novartis' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Novartis' price. Additionally, you may evaluate how the addition of Novartis to your portfolios can decrease your overall portfolio volatility.
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Novartis technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Novartis technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Novartis trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...