Is Novozymes (CPSE:NSIS B) Pricing Reflect Recent Valuation Concerns Accurately

Simply Wall St

Mon, February 16, 2026 at 2:05 PM GMT+9 6 min read

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If you are wondering whether Novozymes at a last close of 400.0 is offering good value right now, you are not alone and this article is built to help you make sense of that question.

The stock has been fairly mixed, with a 4.4% gain over the last 7 days, a 4.4% decline over 30 days, a 0.8% return year to date, and a 1.8% decline over the past year. The 3 year and 5 year returns sit at 21.9% and 11.5% respectively.

These moves have kept Novozymes on the radar for investors looking at how the stock trades over different periods, from short term swings through to multi year performance. That context makes it useful to step back and check whether the current price lines up with underlying fundamentals.

Right now, Novozymes has a valuation score of 0 out of 6, which means our checks do not currently flag it as undervalued on any of those six metrics. Next, we will run through the key valuation approaches in more detail and finish with a way to look beyond the numbers to understand the value story more fully.

Novozymes scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Novozymes Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model takes the cash that a company is expected to generate in the future, then discounts those projected cash flows back to today to estimate what the business might be worth right now.

For Novozymes, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections. The latest twelve month Free Cash Flow is about €708.3 million. Analyst inputs and extrapolated estimates see Free Cash Flow figures such as €800.8 million in 2026 and around €888.8 million in 2028, with further values projected out to 2035 by Simply Wall St.

After discounting these projected cash flows, the DCF model arrives at an estimated intrinsic value of about €330.66 per share. Compared with the recent share price of 400.0 DKK, this suggests the stock may be around 21.0% overvalued according to this method.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Novozymes may be overvalued by 21.0%. Discover 230 high quality undervalued stocks or create your own screener to find better value opportunities.

NSIS B Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Novozymes.

Approach 2: Novozymes Price vs Earnings

For a profitable company like Novozymes, the P/E ratio is a useful way to relate what you pay for each share to the earnings that business is currently generating. It quickly shows how much investors are willing to pay for one unit of earnings.

Story Continues  

What counts as a normal or fair P/E depends a lot on growth expectations and risk. Higher expected growth or lower perceived risk can justify a higher multiple, while slower growth or higher risk tends to align with a lower one.

Novozymes is trading on a P/E of 45.59x. That is well above the Chemicals industry average of 22.22x and above the peer group average of 31.33x. Simply Wall St also calculates a proprietary Fair Ratio of 30.96x for Novozymes, which reflects factors such as its earnings growth profile, industry, profit margins, market cap and company specific risks.

This Fair Ratio can be more informative than a simple peer or industry comparison because it adjusts for the characteristics of Novozymes itself rather than applying a broad sector multiple. With the current P/E of 45.59x versus a Fair Ratio of 30.96x, the shares look expensive on this metric.

Result: OVERVALUED

CPSE:NSIS B P/E Ratio as at Feb 2026

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Upgrade Your Decision Making: Choose your Novozymes Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simply your story about a company, linked directly to your own numbers on future revenue, earnings, margins and fair value. On Simply Wall St you can set these up on the Community page so that the platform, used by millions of investors, can translate your view into a Fair Value that you can compare with the current price. This can help you decide whether it feels more like a time to buy, hold or sell. That Fair Value will automatically update as fresh information such as news or earnings arrives. For example, one Novozymes Narrative might assume a fair value of DKK560.0 based on stronger growth and higher P/E expectations, while another might point to DKK380.0 with more cautious assumptions. Seeing those side by side makes it clear how different views about the same business can lead to different estimates of what the shares are worth today.

For Novozymes however, we will make it really easy for you with previews of two leading Novozymes Narratives:

🐂 Novozymes Bull Case

Fair value used in this bullish narrative: DKK560.0

Implied discount to this fair value at the DKK400.0 last close: about 28.6% undervalued

Revenue growth assumption: 8.35% per year

Assumes rising demand for healthier, higher protein and more nutritional foods, plus cleaner detergents and biofuels, supports volumes, pricing and margins across Food, Household Care and bioenergy markets.

Builds in revenue growth of 8.35% a year, profit margins moving from 13.2% to 18.6%, and earnings of €978.7m by around January 2029, with the share trading on a P/E of 51.7x at that point.

Recognises execution risks around emerging markets, FX and investment payback, but still supports a bullish fair value of DKK560.0 based on higher growth and margin expectations than consensus.

🐻 Novozymes Bear Case

Fair value used in this bearish narrative: DKK380.0

Implied premium to this fair value at the DKK400.0 last close: about 5.3% overvalued

Revenue growth assumption: 6.12% per year

Focuses on possible headwinds from competition and regulation in emerging markets, customer concentration in Dairy, policy uncertainty in bioenergy and mixed volume trends in detergents.

Builds in revenue growth of 6.12% a year, profit margins increasing from 13.2% to 19.3%, and earnings of €956.4m by around December 2028, with the share on a lower 35.9x P/E multiple.

Accepts that long term demand for biosolutions and regulatory trends could surprise to the upside, but anchors fair value at DKK380.0, closer to the cautious end of the current analyst target range.

Seeing those bullish and bearish narratives side by side gives you a clear starting point so you can decide which set of assumptions feels closer to your own view on Novozymes and adjust the inputs to fit your expectations on growth, margins and valuation.

Curious how numbers become stories that shape markets? Explore Community Narratives

Do you think there’s more to the story for Novozymes? Head over to our Community to see what others are saying!

CPSE:NSIS B 1-Year Stock Price Chart

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include NSIS-B.CO.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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