ABB (SWX:ABBN): Evaluating Valuation After New Data Centre and Space Tech Initiatives

ABB (SWX:ABBN) has been making waves with two distinct developments. The company has rolled out its ultra-low harmonic drives targeting the data centre boom, and it has secured a new contract with the Canadian Space Agency focused on climate monitoring innovation.

See our latest analysis for ABB.

ABB’s share price has steadily climbed to CHF 59.6, reflecting renewed optimism after its strong Q3 earnings, active share buybacks, and recent leadership transition announcements. Over the past year, investors have enjoyed a 25% total shareholder return, and momentum continues to build with a 21% year-to-date price return and notable multi-year gains.

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But with ABB trading at a premium to analyst targets and recent gains now factored in, the key question remains: Is there still an upside for new investors, or has future growth already been priced in?

Most Popular Narrative: 11.4% Overvalued

ABB's most-followed valuation narrative puts its fair value at CHF 53.48, noticeably below the recent close of CHF 59.6. Pivotal growth assumptions and future profit estimates underpin this calculation, setting out both promise and tension for investors eyeing the stock at these levels.

ABB's robust order intake, especially in electrification, utility, and data center demand, reflects structural increases in global electricity consumption and grid upgrades as industries and urban infrastructure transition away from fossil fuels. This underpins visible multi-year revenue growth and expanding order backlog.

Read the complete narrative.

Curious which future milestones analysts are baking in? The most popular narrative relies on bold earnings, margin growth, and ongoing efficiency plays, plus an aggressive profit multiple. Want to see what’s factored into this price target? The specifics just might surprise you.

Result: Fair Value of $53.48 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in key end-markets or growing competition in robotics could quickly undermine ABB’s multi-year growth and margin ambitions.

Find out about the key risks to this ABB narrative.

Build Your Own ABB Narrative

Not convinced by the consensus view or prefer to dive into the numbers yourself? With just a few clicks, you can craft your own take on ABB in minutes. Do it your way

A great starting point for your ABB research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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