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 16.78 is considered Fairly compared with the five-year average of 12.84. The fair price of AbbVie Inc (ABBV) is between 173.35 to 237.05 according to relative valuation methord.
Relative Value
Fair Zone
173.35-237.05
Current Price：230.47
Fair
16.66
PE
1Y
3Y
5Y
Trailing
Forward
15.15
EV/EBITDA
AbbVie Inc. (ABBV) has a current EV/EBITDA of 15.15. The 5-year average EV/EBITDA is 11.96. The thresholds are as follows: Strongly Undervalued below 7.94, Undervalued between 7.94 and 9.95, Fairly Valued between 13.97 and 9.95, Overvalued between 13.97 and 15.98, and Strongly Overvalued above 15.98. The current Forward EV/EBITDA of 15.15 falls within the Overvalued range.
15.22
EV/EBIT
AbbVie Inc. (ABBV) has a current EV/EBIT of 15.22. The 5-year average EV/EBIT is 12.31. The thresholds are as follows: Strongly Undervalued below 8.49, Undervalued between 8.49 and 10.40, Fairly Valued between 14.22 and 10.40, Overvalued between 14.22 and 16.13, and Strongly Overvalued above 16.13. The current Forward EV/EBIT of 15.22 falls within the Overvalued range.
6.28
PS
AbbVie Inc. (ABBV) has a current PS of 6.28. The 5-year average PS is 4.81. The thresholds are as follows: Strongly Undervalued below 3.05, Undervalued between 3.05 and 3.93, Fairly Valued between 5.68 and 3.93, Overvalued between 5.68 and 6.56, and Strongly Overvalued above 6.56. The current Forward PS of 6.28 falls within the Overvalued range.
15.68
P/OCF
AbbVie Inc. (ABBV) has a current P/OCF of 15.68. The 5-year average P/OCF is 12.26. The thresholds are as follows: Strongly Undervalued below 6.78, Undervalued between 6.78 and 9.52, Fairly Valued between 15.00 and 9.52, Overvalued between 15.00 and 17.74, and Strongly Overvalued above 17.74. The current Forward P/OCF of 15.68 falls within the Overvalued range.
16.96
P/FCF
AbbVie Inc. (ABBV) has a current P/FCF of 16.96. The 5-year average P/FCF is 12.75. The thresholds are as follows: Strongly Undervalued below 7.05, Undervalued between 7.05 and 9.90, Fairly Valued between 15.60 and 9.90, Overvalued between 15.60 and 18.44, and Strongly Overvalued above 18.44. The current Forward P/FCF of 16.96 falls within the Overvalued range.
AbbVie Inc (ABBV) has a current Price-to-Book (P/B) ratio of -154.02. Compared to its 3-year average P/B ratio of -110.66 , the current P/B ratio is approximately 39.18% higher. Relative to its 5-year average P/B ratio of -59.74, the current P/B ratio is about 157.82% higher. AbbVie Inc (ABBV) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 6.79%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 7.68% , the current FCF yield is about -100.00% lower.
-152.99
P/B
Median3y
-110.66
Median5y
-59.74
4.84
FCF Yield
Median3y
6.79
Median5y
7.68
Competitors Valuation Multiple
The average P/S ratio for ABBV's competitors is 4.67, providing a benchmark for relative valuation. AbbVie Inc Corp (ABBV) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 9.10%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ABBV increased by 31.12% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 82.07 to 173.19.
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.
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FAQ
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