ABT Valuation

Abbott Laboratories

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132.660

+1.29(0.982%)1D

Overview
Forecast
Valuation
Earnings

ABT Relative Valuation

ABT'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, ABT is overvalued; if below, it's undervalued.

Historical Valuation

Abbott Laboratories (ABT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 24.53 is considered Undervalued compared with the five-year average of 24.67. The fair price of Abbott Laboratories (ABT) is between 136.12 to 155.20 according to relative valuation methord. Compared to the current price of 132.66 USD , Abbott Laboratories is Undervalued By 2.54%.

Relative Value

Fair Zone

136.12-155.20

Current Price：132.66

2.54%

Undervalued

24.53

Trailing

Forward

18.92

EV/EBITDA

Abbott Laboratories. (ABT) has a current EV/EBITDA of 18.92. The 5-year average EV/EBITDA is 18.92. The thresholds are as follows: Strongly Undervalued below 16.26, Undervalued between 16.26 and 17.59, Fairly Valued between 20.25 and 17.59, Overvalued between 20.25 and 21.58, and Strongly Overvalued above 21.58. The current Forward EV/EBITDA of 18.92 falls within the Historic Trend Line -Fairly Valued range.

21.47

EV/EBIT

Abbott Laboratories. (ABT) has a current EV/EBIT of 21.47. The 5-year average EV/EBIT is 21.72. The thresholds are as follows: Strongly Undervalued below 18.36, Undervalued between 18.36 and 20.04, Fairly Valued between 23.40 and 20.04, Overvalued between 23.40 and 25.08, and Strongly Overvalued above 25.08. The current Forward EV/EBIT of 21.47 falls within the Historic Trend Line -Fairly Valued range.

4.97

Abbott Laboratories. (ABT) has a current PS of 4.97. The 5-year average PS is 4.85. The thresholds are as follows: Strongly Undervalued below 4.00, Undervalued between 4.00 and 4.42, Fairly Valued between 5.27 and 4.42, Overvalued between 5.27 and 5.69, and Strongly Overvalued above 5.69. The current Forward PS of 4.97 falls within the Historic Trend Line -Fairly Valued range.

19.80

P/OCF

Abbott Laboratories. (ABT) has a current P/OCF of 19.80. The 5-year average P/OCF is 19.02. The thresholds are as follows: Strongly Undervalued below 13.05, Undervalued between 13.05 and 16.04, Fairly Valued between 22.01 and 16.04, Overvalued between 22.01 and 24.99, and Strongly Overvalued above 24.99. The current Forward P/OCF of 19.80 falls within the Historic Trend Line -Fairly Valued range.

24.81

P/FCF

Abbott Laboratories. (ABT) has a current P/FCF of 24.81. The 5-year average P/FCF is 23.27. The thresholds are as follows: Strongly Undervalued below 14.42, Undervalued between 14.42 and 18.85, Fairly Valued between 27.69 and 18.85, Overvalued between 27.69 and 32.12, and Strongly Overvalued above 32.12. The current Forward P/FCF of 24.81 falls within the Historic Trend Line -Fairly Valued range.

Abbott Laboratories (ABT) has a current Price-to-Book (P/B) ratio of 4.57. Compared to its 3-year average P/B ratio of 4.90 , the current P/B ratio is approximately -6.74% higher. Relative to its 5-year average P/B ratio of 5.39, the current P/B ratio is about -15.26% higher. Abbott Laboratories (ABT) has a Forward Free Cash Flow (FCF) yield of approximately 2.93%. Compared to its 3-year average FCF yield of 3.04%, the current FCF yield is approximately -3.44% lower. Relative to its 5-year average FCF yield of 3.27% , the current FCF yield is about -10.38% lower.

4.57

P/B

Median3y

4.90

Median5y

5.39

2.93

FCF Yield

Median3y

3.04

Median5y

3.27

Competitors Valuation Multiple

The average P/S ratio for ABT's competitors is 7.40, providing a benchmark for relative valuation. Abbott Laboratories Corp (ABT) exhibits a P/S ratio of 4.97, which is -32.87% above the industry average. Given its robust revenue growth of 7.37%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Thermo Fisher Scientific Inc

Intuitive Surgical Inc

Boston Scientific Corp

Performance Decomposition

Market capitalization of ABT increased by 16.91% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 12.55 to 15.97.

The secondary factor is the Revenue Growth, contributed 7.37%to the performance.

Overall, the performance of ABT in the past 1 year is driven by Margin Expansion. Which is more sustainable.

7.37%

10.38B → 11.14B

Revenue Growth

27.25%

12.55 → 15.97

Margin Expansion

-17.71%

20.22 → 16.64

P/E Change

16.91%