ABBV PE Ratio & Valuation,Is ABBV Overvalued

ABBV Relative Valuation

ABBV's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ABBV is overvalued; if below, it's undervalued.

Historical Valuation

AbbVie Inc (ABBV) is now in the Fair zone, suggesting that its current forward PE ratio of 16.63 is considered Fairly compared with the five-year average of 12.97. The fair price of AbbVie Inc (ABBV) is between 189.42 to 252.68 according to relative valuation methord.

Relative Value

Fair Zone

189.42-252.68

Current Price：228.24

Fair

16.63

14.93

EV/EBITDA

AbbVie Inc. (ABBV) has a current EV/EBITDA of 14.93. The 5-year average EV/EBITDA is 12.05. The thresholds are as follows: Strongly Undervalued below 8.02, Undervalued between 8.02 and 10.03, Fairly Valued between 14.06 and 10.03, Overvalued between 14.06 and 16.07, and Strongly Overvalued above 16.07. The current Forward EV/EBITDA of 14.93 falls within the Overvalued range.

15.07

EV/EBIT

AbbVie Inc. (ABBV) has a current EV/EBIT of 15.07. The 5-year average EV/EBIT is 12.39. The thresholds are as follows: Strongly Undervalued below 8.57, Undervalued between 8.57 and 10.48, Fairly Valued between 14.30 and 10.48, Overvalued between 14.30 and 16.21, and Strongly Overvalued above 16.21. The current Forward EV/EBIT of 15.07 falls within the Overvalued range.

6.25

AbbVie Inc. (ABBV) has a current PS of 6.25. The 5-year average PS is 4.85. The thresholds are as follows: Strongly Undervalued below 3.10, Undervalued between 3.10 and 3.98, Fairly Valued between 5.73 and 3.98, Overvalued between 5.73 and 6.60, and Strongly Overvalued above 6.60. The current Forward PS of 6.25 falls within the Overvalued range.

15.98

P/OCF

AbbVie Inc. (ABBV) has a current P/OCF of 15.98. The 5-year average P/OCF is 12.38. The thresholds are as follows: Strongly Undervalued below 6.88, Undervalued between 6.88 and 9.63, Fairly Valued between 15.13 and 9.63, Overvalued between 15.13 and 17.88, and Strongly Overvalued above 17.88. The current Forward P/OCF of 15.98 falls within the Overvalued range.

16.88

P/FCF

AbbVie Inc. (ABBV) has a current P/FCF of 16.88. The 5-year average P/FCF is 12.88. The thresholds are as follows: Strongly Undervalued below 7.21, Undervalued between 7.21 and 10.05, Fairly Valued between 15.72 and 10.05, Overvalued between 15.72 and 18.56, and Strongly Overvalued above 18.56. The current Forward P/FCF of 16.88 falls within the Overvalued range.

AbbVie Inc (ABBV) has a current Price-to-Book (P/B) ratio of -153.40. Compared to its 3-year average P/B ratio of -115.51 , the current P/B ratio is approximately 32.80% higher. Relative to its 5-year average P/B ratio of -62.42, the current P/B ratio is about 145.76% higher. AbbVie Inc (ABBV) has a Forward Free Cash Flow (FCF) yield of approximately 4.86%. Compared to its 3-year average FCF yield of 6.71%, the current FCF yield is approximately -27.67% lower. Relative to its 5-year average FCF yield of 7.62% , the current FCF yield is about -36.29% lower.

-153.40

P/B

Median3y

-115.51

Median5y

-62.42

4.86

FCF Yield

Median3y

6.71

Median5y

7.62

Competitors Valuation Multiple

The average P/S ratio for ABBV's competitors is 5.07, providing a benchmark for relative valuation. AbbVie Inc Corp (ABBV) exhibits a P/S ratio of 6.25, which is 23.4% above the industry average. Given its robust revenue growth of 9.10%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ABBV increased by 29.31% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 83.00 to 173.64.

The secondary factor is the Revenue Growth, contributed 9.10%to the performance.

Overall, the performance of ABBV in the past 1 year is driven by P/E Change. Which is more unsustainable.

9.10%

14.46B → 15.78B

Revenue Growth

-89.00%

10.82 → 1.19

Margin Expansion

109.21%

83.00 → 173.64

P/E Change

29.31%

180.51 → 233.42

Mkt Cap Growth

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Frequently Asked Questions

Is AbbVie Inc (ABBV) currently overvalued or undervalued?

What is AbbVie Inc (ABBV) fair value?

ABBV's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of AbbVie Inc (ABBV) is between 189.42 to 252.68 according to relative valuation methord.

How does ABBV's valuation metrics compare to the industry average?

The average P/S ratio for ABBV's competitors is 5.07, providing a benchmark for relative valuation. AbbVie Inc Corp (ABBV) exhibits a P/S ratio of 6.25, which is 23.40% above the industry average. Given its robust revenue growth of 9.10%, this premium appears unsustainable.

What is the current P/B ratio for AbbVie Inc (ABBV) as of Jan 08 2026?

As of Jan 08 2026, AbbVie Inc (ABBV) has a P/B ratio of -153.40. This indicates that the market values ABBV at -153.40 times its book value.

What is the current FCF Yield for AbbVie Inc (ABBV) as of Jan 08 2026?

As of Jan 08 2026, AbbVie Inc (ABBV) has a FCF Yield of 4.86%. This means that for every dollar of AbbVie Inc’s market capitalization, the company generates 4.86 cents in free cash flow.

What is the current Forward P/E ratio for AbbVie Inc (ABBV) as of Jan 08 2026?

As of Jan 08 2026, AbbVie Inc (ABBV) has a Forward P/E ratio of 16.63. This means the market is willing to pay $16.63 for every dollar of AbbVie Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for AbbVie Inc (ABBV) as of Jan 08 2026?

As of Jan 08 2026, AbbVie Inc (ABBV) has a Forward P/S ratio of 6.25. This means the market is valuing ABBV at $6.25 for every dollar of expected revenue over the next 12 months.

ABBV Valuation