Abbvie Stock Valuation

ABBV
 Stock
  

USD 142.38  1.09  0.77%   

What is the acquisition price tag of Abbvie Inc? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Abbvie, is its stock price multiplied by the total number of shares outstanding, calculating Abbvie's enterprise value requires a different approach. It uses Abbvie's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to climb to about 23.7 B in 2022, whereas Enterprise Value is likely to drop slightly above 261.2 B in 2022.
Abbvie Inc shows a prevailing Real Value of $143.51 per share. The current price of the firm is $142.38. At this time, the firm appears to be fairly valued. Our model approximates the value of Abbvie Inc from analyzing the firm fundamentals such as profit margin of 22.03 %, and Return On Equity of 86.59 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor buying undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Abbvie Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Abbvie's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Abbvie Most Recent Valuation Data

Price Book
17.2
EPS Estimate Next Quarter
3.67
Price Sales
4.39
Forward Annual Dividend Yield
0.0399
EBITDA
27.2 B
Dividend Share
5.53
Fairly Valued
Today 142.38
Please note that Abbvie's price fluctuation is very steady at this time. Calculation of the real value of Abbvie Inc is based on 3 months time horizon. Increasing Abbvie's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Abbvie Inc is useful when determining the fair value of the Abbvie stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Abbvie. Since Abbvie is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Abbvie Stock. However, Abbvie's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
142.17
Downside
143.51
Real Value
144.85
Upside
Estimating the potential upside or downside of Abbvie Inc helps investors to forecast how Abbvie stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Abbvie more accurately as focusing exclusively on Abbvie's fundamentals will not take into account other important factors:
Earnings
Estimates (7)
LowProjected EPSHigh
12.6412.6812.75
Details
Hype
Prediction
LowEstimated ValueHigh
140.92142.26143.60
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
3.423.543.65
Details
13 Analysts
Consensus
LowTarget PriceHigh
118.00143.42172.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Abbvie's intrinsic value based on its ongoing forecasts of Abbvie's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Abbvie's closest peers. When choosing an evaluation method for Abbvie Inc, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Abbvie Investments

370.5 Million

Abbvie Valuation Drivers Correlation

Many accounts on the financial statements of Abbvie Inc are highly interrelated and sometimes correlated. Consequently, when conducting Abbvie's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Abbvie
Click cells to compare fundamentals

Abbvie Valuation Trend

Knowing Abbvie's actual value is paramount for traders to make sound investment determinations. Abbvie's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Abbvie's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Abbvie's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Abbvie Market Cap

Abbvie Inc is number one stock in market capitalization category among related companies. Market capitalization of Drug Manufacturers—General industry is presently estimated at about 1.06 Trillion. Abbvie totals roughly 252.1 Billion in market capitalization claiming about 24% of equities under Drug Manufacturers—General industry.
Capitalization  Revenue  Workforce  Total debt  Valuation

Abbvie Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Abbvie's current stock value. Our valuation model uses many indicators to compare Abbvie value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Abbvie competition to find correlations between indicators driving Abbvie's intrinsic value. More Info.
Abbvie Inc is number one stock in price to earning category among related companies. It is number one stock in five year return category among related companies reporting about  0.13  of Five Year Return per Price to Earning. The ratio of Price to Earning to Five Year Return for Abbvie Inc is roughly  7.94 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Abbvie by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Abbvie's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Abbvie's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Abbvie's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Abbvie and how it compares across the competition.

About Abbvie Valuation

The stock valuation mechanism determines the current worth of Abbvie Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Abbvie Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Abbvie Inc based exclusively on its fundamental and basic technical indicators. By analyzing Abbvie's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Abbvie's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Abbvie. We calculate exposure to Abbvie's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Abbvie's related companies.
Fiscal Year End
December
Industry
Drug Manufacturers-General
Concentration
Biotechnology
Full Time Employees
50 K
Service Category
Biotechnology
Employer Id Number
32-0375147
Last ReportedProjected for 2022
Gross Profit38.8 B32.8 B
Profit Margin 0.20  0.19 

Abbvie Quarterly Enterprise Value

338.03 Billion

Abbvie's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Abbvie's value is low or high relative to the company's performance and growth projections. Determining the market value of Abbvie can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Abbvie represents a small ownership stake in the entity. As a stockholder of Abbvie, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Abbvie Dividends Analysis For Valuation

Dividend Yield is likely to climb to 0.0406 in 2022, whereas Payment of Dividends and Other Cash Distributions is likely to drop (9.5 B) in 2022. . Abbvie Accumulated Retained Earnings Deficit are fairly stable at the moment as compared to the past year. Abbvie reported Accumulated Retained Earnings Deficit of 3.13 Billion in 2021. Price to Earnings Ratio is likely to climb to 22.53 in 2022, whereas Earnings per Basic Share are likely to drop 5.38 in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-9.3 B-9.5 B
Dividend Yield 0.038  0.0406 
Dividends per Basic Common Share 5.20  4.53 
There are various types of dividends Abbvie can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Abbvie shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Abbvie Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Abbvie pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Abbvie by the value of the dividends paid out.

Abbvie Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Abbvie does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Earnings Quarterly Growth20.60%
Revenue Growth4.50%
Payout Ratio76.18%
Enterprise Value To Ebitda10.85
Earnings Growth21.70%
Enterprise Value To Revenue5.57

Abbvie Current Valuation Indicators

Valuation refers to the process of determining the present value of Abbvie Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Abbvie we look at many different elements of the entity such as Abbvie's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Abbvie's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Abbvie's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Abbvie, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Abbvie's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Abbvie's worth.
Please continue to Trending Equities. Note that the Abbvie Inc information on this page should be used as a complementary analysis to other Abbvie's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

Complementary Tools for Abbvie Stock analysis

When running Abbvie Inc price analysis, check to measure Abbvie's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Abbvie is operating at the current time. Most of Abbvie's value examination focuses on studying past and present price action to predict the probability of Abbvie's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Abbvie's price. Additionally, you may evaluate how the addition of Abbvie to your portfolios can decrease your overall portfolio volatility.
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Is Abbvie's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Abbvie. If investors know Abbvie will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Abbvie listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.21
Market Capitalization
251.5 B
Quarterly Revenue Growth YOY
0.045
Return On Assets
0.0814
Return On Equity
0.93
The market value of Abbvie Inc is measured differently than its book value, which is the value of Abbvie that is recorded on the company's balance sheet. Investors also form their own opinion of Abbvie's value that differs from its market value or its book value, called intrinsic value, which is Abbvie's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Abbvie's market value can be influenced by many factors that don't directly affect Abbvie's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Abbvie's value and its price as these two are different measures arrived at by different means. Investors typically determine Abbvie value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Abbvie's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.