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Novozymes (CPSE:NSIS B) Expands Wisconsin Capacity, Is The Stock Still 12% Undervalued?

Simply Wall St · 2d ago

Novozymes (CPSE:NSIS B) is back in focus after Novonesis completed a large expansion at its West Allis, Wisconsin facility, increasing dairy culture fermentation capacity by about 66% and packaging capacity by 17%.

At a share price of DKK435.1, Novozymes has seen momentum pick up recently, with a 7 day share price return of 4.59% and a year to date share price return of 9.65%. The 3 year total shareholder return of 58% points to a stronger long haul story that recent expansion news helps keep in focus.

Scan how Novozymes fits alongside other high quality, resilient biosolutions and materials businesses in our curated list of 223 resilient stocks with low risk scores.

After that Wisconsin expansion and a strong three year run, the real tension is simple. At DKK435.1, is most of Novozymes’ upside already captured, or does the current valuation still leave meaningful headroom?

Most Popular Narrative: 12% Undervalued

On the most followed view, Novozymes is valued at a fair value of DKK491.93, which sits above the last close of DKK435.1 and suggests the current price does not fully reflect that narrative yet.

Structural growth in bioenergy from higher blend mandates, new second generation ethanol and biodiesel capacity in India, Latin America and Europe, as well as technology driven efficiency gains in existing plants, is expected to support high single digit growth in Agriculture, Energy & Tech and underpin cash flow and earnings expansion.

See why 5 investors see Novozymes as 12% undervalued.

Result: Fair Value of DKK491.93 (UNDERVALUED)

Still, the narrative around Novozymes can be knocked off course if heavy emerging market investment underdelivers, or if currency swings keep chipping away at profitability.

Find out about the key risks to this Novozymes narrative.

Another View On Novozymes’ Valuation

The first fair value story paints Novozymes as around 12% undervalued at DKK491.93. The preferred P/E lens looks very different. At 42.9x earnings, the stock trades well above the European Chemicals group on 17x and peers on 37.5x, and even above its own 27.8x fair ratio, which points to rich expectations rather than a clear bargain. Which signal do you give more weight to when the market is already paying a premium for every krone of profit?

To see how that premium lines up with the underlying numbers, and what it could mean if the market moves closer to the fair ratio, See what the numbers say about this price — find out in our valuation breakdown..

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

Next Steps

Mixed signals on Novozymes so far, which is exactly why you might want to move fast, review the underlying data and weigh the balance of risk and reward for yourself using our breakdown of 3 key rewards and 1 important warning sign.

Looking for more Novozymes-sized investment ideas?

If Novozymes has your attention, do not stop here. Use the Simply Wall Street Screener to line up your next three potential opportunities before the crowd.

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.