Abbott Laboratories Valuation

Is ABT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ABT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ABT (ARS32600) is trading above our estimate of fair value (ARS32432.5)

Significantly Below Fair Value: ABT is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for ABT?

Key metric: As ABT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ABT. This is calculated by dividing ABT's market cap by their current earnings.
What is ABT's PE Ratio?
PE Ratio35.4x
EarningsUS$5.74b
Market CapUS$203.56b

Price to Earnings Ratio vs Peers

How does ABT's PE Ratio compare to its peers?

The above table shows the PE ratio for ABT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average57.2x
ISRG Intuitive Surgical
85.6x11.5%US$189.4b
SYK Stryker
41.3x11.4%US$148.4b
MDT Medtronic
27.8x11.4%US$112.3b
BSX Boston Scientific
74.3x23.2%US$133.3b
ABT Abbott Laboratories
35.4x11.6%AR$203.6b

Price-To-Earnings vs Peers: ABT is good value based on its Price-To-Earnings Ratio (35.4x) compared to the peer average (57.2x).


Price to Earnings Ratio vs Industry

How does ABT's PE Ratio compare vs other companies in the Global Medical Equipment Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ABT 35.4xIndustry Avg. 27.7xNo. of Companies51PE020406080100+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABT is expensive based on its Price-To-Earnings Ratio (35.4x) compared to the Global Medical Equipment industry average (27.7x).


Price to Earnings Ratio vs Fair Ratio

What is ABT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ABT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ABT's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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