ABB Ltd

XTRA:ABJ Stock Report

Market Cap: €117.2b

ABB Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

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

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: ABJ (€64.52) is trading above our estimate of future cash flow value (€59.38)

Significantly Below Future Cash Flow Value: ABJ is trading above our estimate of future cash flow value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ABJ. This is calculated by dividing ABJ's market cap by their current earnings.
What is ABJ's PE Ratio?
PE Ratio31x
EarningsUS$4.45b
Market CapUS$137.94b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ABJ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average48.1x
3CA Plejd
52.3x29.83%€9.9b
ENR Siemens Energy
85.7x26.92%€121.2b
PFSE PFISTERER Holding
28.4x12.63%€1.3b
SIE Siemens
26.1x9.88%€198.1b
ABJ ABB
31x8.39%€108.7b

Price-To-Earnings vs Peers: ABJ is good value based on its Price-To-Earnings Ratio (31x) compared to the peer average (49.4x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ABJ 31.0xIndustry Avg. 23.2xNo. of Companies11PE01632486480+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABJ is expensive based on its Price-To-Earnings Ratio (31x) compared to the European Electrical industry average (23.2x).

Price to Earnings Ratio vs Fair Ratio

What is ABJ'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.

ABJ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31x
Fair PE Ratio25.9x

Price-To-Earnings vs Fair Ratio: ABJ is expensive based on its Price-To-Earnings Ratio (31x) compared to the estimated Fair Price-To-Earnings Ratio (25.9x).

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 ABJ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€64.52
€61.78
-4.24%
12.58%€82.37€48.58n/a27
Jan ’27€63.74
€60.66
-4.83%
13.75%€82.66€45.92n/a26
Dec ’26€61.32
€60.56
-1.24%
12.62%€74.56€46.65n/a25
Nov ’26€64.44
€59.81
-7.18%
13.89%€74.30€43.48n/a25
Oct ’26€61.40
€55.26
-9.99%
11.98%€68.99€41.68n/a22
Sep ’26€57.90
€53.50
-7.60%
11.83%€66.52€39.57n/a23
Aug ’26€55.68
€53.58
-3.77%
11.93%€67.20€39.97n/a22
Jul ’26€50.02
€48.71
-2.63%
10.50%€58.66€38.27n/a24
Jun ’26€49.80
€49.66
-0.28%
10.97%€60.67€39.74n/a24
May ’26n/a
€50.36
0%
11.45%€61.00€36.68n/a24
Apr ’26n/a
€51.91
0%
12.46%€67.29€38.39n/a24
Mar ’26n/a
€52.59
0%
11.21%€63.43€39.81n/a23
Feb ’26n/a
€51.70
0%
11.32%€63.78€39.95n/a22
Jan ’26n/a
€52.48
0%
10.51%€65.26€42.10€63.7423
Dec ’25n/a
€51.25
0%
10.37%€64.30€41.48€61.3221
Nov ’25n/a
€49.56
0%
8.85%€58.80€40.60€64.4421
Oct ’25n/a
€48.81
0%
9.24%€59.15€40.54€61.4021
Sep ’25n/a
€47.63
0%
12.16%€59.66€37.91€57.9019
Aug ’25n/a
€48.19
0%
12.45%€60.57€38.48€55.6819
Jul ’25n/a
€46.56
0%
13.56%€60.60€35.98€50.0219
Jun ’25n/a
€43.50
0%
9.38%€51.77€35.62€49.8019
May ’25n/a
€42.66
0%
10.26%€52.43€35.87n/a19
Apr ’25n/a
€40.88
0%
9.80%€48.11€33.31n/a19
Mar ’25n/a
€39.47
0%
12.63%€47.76€29.35n/a20
Feb ’25n/a
€39.42
0%
12.13%€48.22€30.01n/a20
Jan ’25n/a
€37.39
0%
12.46%€45.40€28.35n/a20
€61.89
Fair Value
4.3% overvalued intrinsic discount
27
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/01/23 18:56
End of Day Share Price 2026/01/23 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

ABB Ltd is covered by 58 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
null nullABG Sundal Collier
Stefan GächterBaader Helvea Equity Research
Guenther HollfelderBaader Helvea Equity Research