Abbott Laboratories Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 (CHF93.5) is trading below our estimate of fair value (CHF119.12)

Significantly Below Fair Value: ABT is trading below fair value by more than 20%.


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 Ratio34.7x
EarningsUS$5.74b
Market CapUS$200.75b

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 Average43.6x
SOON Sonova Holding
31.6x8.6%CHF 19.0b
STMN Straumann Holding
62.8x20.9%CHF 18.1b
MOVE Medacta Group
43.4x18.4%CHF 2.3b
ALC Alcon
36.6x9.5%CHF 37.8b
ABT Abbott Laboratories
34.7x11.6%CHF 200.7b

Price-To-Earnings vs Peers: ABT is good value based on its Price-To-Earnings Ratio (34.7x) compared to the peer average (43.6x).


Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ABT 34.7xIndustry Avg. 29.9xNo. of Companies7PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABT is expensive based on its Price-To-Earnings Ratio (34.7x) compared to the European Medical Equipment industry average (30.1x).


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 Ratio34.7x
Fair PE Ratio41.3x

Price-To-Earnings vs Fair Ratio: ABT is good value based on its Price-To-Earnings Ratio (34.7x) compared to the estimated Fair Price-To-Earnings Ratio (41.3x).


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 ABT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 93.50
CHF 114.36
+22.3%
7.5%CHF 131.42CHF 91.73n/a24
Nov ’25CHF 93.50
CHF 111.92
+19.7%
7.6%CHF 126.50CHF 90.11n/a24
Oct ’25CHF 93.50
CHF 105.18
+12.5%
8.4%CHF 121.01CHF 88.01n/a23
Sep ’25CHF 92.00
CHF 105.26
+14.4%
8.5%CHF 121.58CHF 88.42n/a22
Aug ’25CHF 94.00
CHF 110.42
+17.5%
8.0%CHF 126.73CHF 92.16n/a22
Jul ’25CHF 93.00
CHF 113.07
+21.6%
7.6%CHF 129.19CHF 93.96n/a22
Jun ’25CHF 93.00
CHF 113.07
+21.6%
7.6%CHF 129.19CHF 93.96n/a22
May ’25CHF 93.00
CHF 115.18
+23.8%
7.5%CHF 130.37CHF 94.82n/a22
Apr ’25CHF 93.00
CHF 110.86
+19.2%
7.2%CHF 124.59CHF 91.89n/a22
Mar ’25CHF 93.00
CHF 109.75
+18.0%
7.2%CHF 123.89CHF 91.38n/a22
Feb ’25CHF 93.00
CHF 106.82
+14.9%
7.3%CHF 120.94CHF 89.20n/a21
Jan ’25CHF 93.00
CHF 100.36
+7.9%
7.7%CHF 113.89CHF 85.63n/a21
Dec ’24CHF 91.00
CHF 104.23
+14.5%
7.9%CHF 119.24CHF 89.66n/a21
Nov ’24CHF 91.00
CHF 104.23
+14.5%
7.9%CHF 119.24CHF 89.66CHF 93.5021
Oct ’24CHF 90.00
CHF 109.19
+21.3%
6.5%CHF 119.99CHF 91.76CHF 93.5020
Sep ’24CHF 93.50
CHF 109.19
+16.8%
6.5%CHF 119.99CHF 91.76CHF 92.0020
Aug ’24CHF 93.00
CHF 107.24
+15.3%
6.3%CHF 117.57CHF 89.91CHF 94.0020
Jul ’24CHF 91.50
CHF 111.15
+21.5%
7.3%CHF 123.57CHF 93.59CHF 93.0021
Jun ’24CHF 91.50
CHF 110.17
+20.4%
7.7%CHF 123.18CHF 93.29CHF 93.0022
May ’24CHF 91.50
CHF 108.32
+18.4%
7.8%CHF 120.78CHF 91.48CHF 93.0021
Apr ’24CHF 95.00
CHF 109.78
+15.6%
7.7%CHF 127.97CHF 95.06CHF 93.0022
Mar ’24CHF 103.00
CHF 110.98
+7.8%
8.2%CHF 128.83CHF 95.70CHF 93.0022
Feb ’24CHF 103.00
CHF 110.98
+7.8%
8.2%CHF 128.83CHF 95.70CHF 93.0022
Jan ’24CHF 101.00
CHF 108.23
+7.2%
10.7%CHF 133.81CHF 85.49CHF 93.0024
Dec ’23CHF 101.00
CHF 117.67
+16.5%
10.9%CHF 145.89CHF 93.21CHF 91.0023
Nov ’23CHF 107.00
CHF 115.45
+7.9%
10.3%CHF 142.04CHF 90.75CHF 91.0023

Analyst Forecast: Target price is less than 20% higher than the current share price.


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