ABB Ltd

SWX:ABBN Stock Report

Mkt Cap: CHF65.6b

We’ve recently updated our valuation analysis.

ABB Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ABBN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA16.4x
PEG Ratio4.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ABBN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.7x
HUBN Huber+Suhner
16.4x5.0%CHF1.4b
PMN Phoenix Mecano
9.9x1.4%CHF382.2m
GAV Carlo Gavazzi Holding
10.6xn/aCHF260.1m
SCHN Schindler Holding
29.9x11.5%CHF20.6b
ABBN ABB
24.5x7.0%CHF65.6b

Price-To-Earnings vs Peers: ABBN is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the peer average (16.7x).

Price to Earnings Ratio vs Industry

How does ABBN's PE Ratio compare vs other companies in the European Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.4%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.4%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: ABBN is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the European Electrical industry average (18.8x)

Price to Earnings Ratio vs Fair Ratio

What is ABBN'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.

ABBN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.5x
Fair PE Ratio30x

Price-To-Earnings vs Fair Ratio: ABBN is good value based on its Price-To-Earnings Ratio (24.5x) compared to the estimated Fair Price-To-Earnings Ratio (30x).

Share Price vs Fair Value

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

Below Fair Value: ABBN (CHF34.1) is trading above our estimate of fair value (CHF28.2)

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

Analyst Price Targets

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

The above table shows the analyst ABBN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF34.10
CHF33.91
-0.6%
13.4%CHF48.04CHF28.54n/a22
Jun ’24CHF33.52
CHF33.83
+0.9%
13.7%CHF48.14CHF28.60n/a22
May ’24CHF32.12
CHF32.65
+1.7%
11.7%CHF40.53CHF26.88n/a21
Apr ’24CHF31.37
CHF31.88
+1.6%
12.5%CHF40.23CHF26.63n/a20
Mar ’24CHF31.47
CHF31.93
+1.5%
12.6%CHF39.00CHF25.47n/a20
Feb ’24CHF31.97
CHF30.70
-4.0%
14.0%CHF40.32CHF23.45n/a20
Jan ’24CHF28.06
CHF28.41
+1.2%
13.3%CHF39.72CHF23.64n/a20
Dec ’23CHF29.54
CHF28.92
-2.1%
12.2%CHF37.98CHF24.09n/a21
Nov ’23CHF27.99
CHF30.31
+8.3%
13.2%CHF40.19CHF25.94n/a21
Oct ’23CHF25.80
CHF32.54
+26.1%
14.0%CHF41.59CHF26.69n/a21
Sep ’23CHF26.48
CHF32.56
+23.0%
13.7%CHF41.39CHF26.55n/a21
Aug ’23CHF28.77
CHF31.76
+10.4%
13.4%CHF40.05CHF25.70n/a21
Jul ’23CHF25.25
CHF33.56
+32.9%
11.6%CHF40.46CHF26.15n/a21
Jun ’23CHF29.57
CHF34.39
+16.3%
11.6%CHF40.61CHF26.25CHF33.5220
May ’23CHF29.60
CHF34.97
+18.1%
10.8%CHF41.00CHF27.62CHF32.1220
Apr ’23CHF30.29
CHF34.69
+14.5%
12.0%CHF41.68CHF25.96CHF31.3720
Mar ’23CHF30.59
CHF35.07
+14.6%
14.0%CHF45.76CHF25.82CHF31.4720
Feb ’23CHF32.14
CHF35.86
+11.6%
16.3%CHF53.33CHF25.24CHF31.9722
Jan ’23CHF34.90
CHF34.49
-1.2%
15.8%CHF51.46CHF25.19CHF28.0622
Dec ’22CHF32.28
CHF34.19
+5.9%
15.7%CHF51.51CHF25.22CHF29.5421
Nov ’22CHF30.32
CHF33.47
+10.4%
17.2%CHF50.86CHF24.76CHF27.9921
Oct ’22CHF30.61
CHF33.99
+11.1%
16.0%CHF46.29CHF24.29CHF25.8021
Sep ’22CHF34.00
CHF32.99
-3.0%
15.6%CHF45.40CHF23.82CHF26.4822
Aug ’22CHF33.13
CHF32.83
-0.9%
15.1%CHF43.76CHF23.77CHF28.7722
Jul ’22CHF31.35
CHF30.96
-1.2%
15.6%CHF40.14CHF23.09CHF25.2522
Jun ’22CHF31.05
CHF29.56
-4.8%
14.7%CHF38.88CHF22.36CHF29.5722

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies