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 (CHF120.41)

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 Ratio34.5x
EarningsUS$5.74b
Market CapUS$194.99b

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 Average42.8x
SOON Sonova Holding
31.2x11.4%CHF 17.6b
STMN Straumann Holding
63.1x21.2%CHF 18.2b
MOVE Medacta Group
40.6x21.1%CHF 2.1b
ALC Alcon
36.3x9.9%CHF 37.6b
ABT Abbott Laboratories
34.5x11.6%CHF 195.0b

Price-To-Earnings vs Peers: ABT is good value based on its Price-To-Earnings Ratio (34.5x) compared to the peer average (42.8x).


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 34.5xIndustry Avg. 29.6xNo. of Companies9PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABT is expensive based on its Price-To-Earnings Ratio (34.5x) compared to the European Medical Equipment industry average (29.6x).


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 Ratio34.5x
Fair PE Ratio40.6x

Price-To-Earnings vs Fair Ratio: ABT is good value based on its Price-To-Earnings Ratio (34.5x) compared to the estimated Fair Price-To-Earnings Ratio (40.6x).


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 116.27
+24.4%
7.5%CHF 133.06CHF 92.87n/a24
Dec ’25CHF 93.50
CHF 115.09
+23.1%
7.4%CHF 132.05CHF 92.17n/a24
Nov ’25CHF 93.50
CHF 111.89
+19.7%
7.6%CHF 126.46CHF 90.08n/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 89.66CHF 93.5021
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

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


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 01:54
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Abbott Laboratories is covered by 61 analysts. 25 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David ToungArgus Research Company
Stephan GasteygerAtlantic Equities LLP
Ishan MajumdarBaptista Research