ABBV Valuation

AbbVie Inc

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196.340

+7.32(3.873%)1D

Overview
Forecast
Valuation
Earnings

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 15.15 is considered Fairly compared with the five-year average of 12.26. The fair price of AbbVie Inc (ABBV) is between 176.74 to 236.25 according to relative valuation methord.

Relative Value

Fair Zone

176.74-236.25

Current Price：189.02

Fair

15.15

Trailing

Forward

13.63

EV/EBITDA

AbbVie Inc. (ABBV) has a current EV/EBITDA of 13.63. The 5-year average EV/EBITDA is 11.58. The thresholds are as follows: Strongly Undervalued below 7.65, Undervalued between 7.65 and 9.61, Fairly Valued between 13.54 and 9.61, Overvalued between 13.54 and 15.51, and Strongly Overvalued above 15.51. The current Forward EV/EBITDA of 13.63 falls within the Overvalued range.

14.00

EV/EBIT

AbbVie Inc. (ABBV) has a current EV/EBIT of 14.00. The 5-year average EV/EBIT is 11.93. The thresholds are as follows: Strongly Undervalued below 8.11, Undervalued between 8.11 and 10.02, Fairly Valued between 13.84 and 10.02, Overvalued between 13.84 and 15.75, and Strongly Overvalued above 15.75. The current Forward EV/EBIT of 14.00 falls within the Overvalued range.

5.47

AbbVie Inc. (ABBV) has a current PS of 5.47. The 5-year average PS is 4.60. The thresholds are as follows: Strongly Undervalued below 2.79, Undervalued between 2.79 and 3.70, Fairly Valued between 5.51 and 3.70, Overvalued between 5.51 and 6.41, and Strongly Overvalued above 6.41. The current Forward PS of 5.47 falls within the Historic Trend Line -Fairly Valued range.

15.55

P/OCF

AbbVie Inc. (ABBV) has a current P/OCF of 15.55. The 5-year average P/OCF is 11.74. The thresholds are as follows: Strongly Undervalued below 6.18, Undervalued between 6.18 and 8.96, Fairly Valued between 14.53 and 8.96, Overvalued between 14.53 and 17.31, and Strongly Overvalued above 17.31. The current Forward P/OCF of 15.55 falls within the Overvalued range.

15.74

P/FCF

AbbVie Inc. (ABBV) has a current P/FCF of 15.74. The 5-year average P/FCF is 12.13. The thresholds are as follows: Strongly Undervalued below 6.22, Undervalued between 6.22 and 9.18, Fairly Valued between 15.09 and 9.18, Overvalued between 15.09 and 18.04, and Strongly Overvalued above 18.04. The current Forward P/FCF of 15.74 falls within the Overvalued range.

AbbVie Inc (ABBV) has a current Price-to-Book (P/B) ratio of 234.92. Compared to its 3-year average P/B ratio of 51.26 , the current P/B ratio is approximately 358.29% higher. Relative to its 5-year average P/B ratio of 36.56, the current P/B ratio is about 542.52% higher. AbbVie Inc (ABBV) has a Forward Free Cash Flow (FCF) yield of approximately 4.60%. Compared to its 3-year average FCF yield of 7.22%, the current FCF yield is approximately -36.23% lower. Relative to its 5-year average FCF yield of 7.96% , the current FCF yield is about -42.24% lower.

234.92

P/B

Median3y

51.26

Median5y

36.56

4.60

FCF Yield

Median3y

7.22

Median5y

7.96

Competitors Valuation Multiple

The average P/S ratio for ABBV's competitors is 4.20, providing a benchmark for relative valuation. AbbVie Inc Corp (ABBV) exhibits a P/S ratio of 5.47, which is 30.39% above the industry average. Given its robust revenue growth of 8.39%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ABBV decreased by 3.71% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 12.31B to 13.34B.

The secondary factor is the P/E Change, contributed 1.26%to the performance.

Overall, the performance of ABBV in the past 1 year is driven by Revenue Growth. Which is more sustainable.

8.39%

12.31B → 13.34B

Revenue Growth

-13.36%

11.15 → 9.66

Margin Expansion

1.26%

79.71 → 80.71

P/E Change

-3.71%