Novo Nordisk shares have an intrinsic value of $89, based on conservative analyst projections adopted by the author.
"the algorithm give you a valuation of $89 that is the intrinsic value. Okay. And at the current share price of $48, it's like um almost half price, right? Almost half price. Now, how is this derived? Now, we can take a look at the actual calculator over here. Let me change to change this to discounted free cash flow. Okay. So, in the last 12 months, the the business generated 13 uh billion in free cash flow. Total debt 17 billion, cash and investment 6 billion. We're using a 5.37% discount rate because it is a low beta stock given it's in uh defensive healthcare. The growth rate projection used by stock oracle that is poop from faxet analyst for the next 5 years they projecting a growth of 14.47%. Now is that fair? Well, recall management has said that they expect profit growth to be between 10 to 16%. That's a management uh guidance, right? So 14%. Is pretty fair. Okay. And then in the next five years, year 6 to 10, um fact analysts are projecting that their growth will half uh from 14% to 7.7%. And for the last 10 years, it will just grow at 4%. Which is pretty conservative, right? So based on this calculation you can see that the intrinsic value derived is $8953 and at a current share price of $48 it is 46% undervalued. Okay. Now personally for me I would I would take this valuation because I like to be conservative."
