ABB Ltd

BATS-CHIXE:ABBS Stock Report

Market Cap: SEK 1.1t

ABB Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 ABBS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ABBS (SEK621.6) is trading above our estimate of fair value (SEK488.08)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ABBS. This is calculated by dividing ABBS's market cap by their current earnings.
What is ABBS's PE Ratio?
PE Ratio26.6x
EarningsUS$3.88b
Market CapUS$103.26b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ABBS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.2x
DSCV discoverIE Group
39.6x18.8%UK£613.1m
BA. BAE Systems
21.7x7.7%UK£39.9b
RR. Rolls-Royce Holdings
19.8x-0.09%UK£46.1b
VLX Volex
15.7x12.9%UK£546.4m
ABBS ABB
26.6x9.2%SEK 92.3b

Price-To-Earnings vs Peers: ABBS is expensive based on its Price-To-Earnings Ratio (26.6x) compared to the peer average (24.2x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABBS is expensive based on its Price-To-Earnings Ratio (26.6x) compared to the European Electrical industry average (16.3x).

Price to Earnings Ratio vs Fair Ratio

What is ABBS'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.

ABBS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.6x
Fair PE Ratio28.2x

Price-To-Earnings vs Fair Ratio: ABBS is good value based on its Price-To-Earnings Ratio (26.6x) compared to the estimated Fair Price-To-Earnings Ratio (28.2x).

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 ABBS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 621.60
SEK 590.90
-4.9%
9.0%SEK 693.14SEK 478.55n/a21
Nov ’25SEK 597.20
SEK 574.36
-3.8%
8.9%SEK 677.13SEK 467.49n/a21
Oct ’25SEK 594.80
SEK 554.69
-6.7%
9.3%SEK 672.32SEK 460.75n/a21
Sep ’25SEK 587.00
SEK 550.83
-6.2%
12.2%SEK 690.07SEK 438.41n/a19
Aug ’25SEK 575.00
SEK 561.47
-2.4%
12.4%SEK 705.75SEK 448.37n/a19
Jul ’25SEK 592.80
SEK 529.60
-10.7%
13.6%SEK 689.34SEK 409.33n/a19
Jun ’25SEK 575.20
SEK 504.82
-12.2%
9.4%SEK 600.83SEK 413.43n/a19
May ’25SEK 544.00
SEK 501.86
-7.7%
10.3%SEK 616.71SEK 421.99n/a19
Apr ’25SEK 494.90
SEK 474.63
-4.1%
9.8%SEK 558.31SEK 386.51n/a19
Mar ’25SEK 475.00
SEK 440.65
-7.2%
12.6%SEK 533.22SEK 327.65n/a20
Feb ’25SEK 454.60
SEK 445.31
-2.0%
12.1%SEK 544.71SEK 338.94n/a20
Jan ’25SEK 446.00
SEK 416.10
-6.7%
12.7%SEK 505.66SEK 315.74n/a20
Dec ’24SEK 420.70
SEK 415.46
-1.2%
12.7%SEK 520.21SEK 324.83n/a20
Nov ’24SEK 376.70
SEK 439.23
+16.6%
13.9%SEK 591.44SEK 348.18SEK 597.2020
Oct ’24SEK 390.30
SEK 438.05
+12.2%
12.6%SEK 609.75SEK 353.67SEK 594.8021
Sep ’24SEK 415.00
SEK 441.73
+6.4%
12.7%SEK 622.04SEK 354.50SEK 587.0022
Aug ’24SEK 418.60
SEK 423.98
+1.3%
11.4%SEK 557.11SEK 343.38SEK 575.0022
Jul ’24SEK 423.60
SEK 408.72
-3.5%
13.0%SEK 566.49SEK 339.09SEK 592.8021
Jun ’24SEK 400.80
SEK 403.06
+0.6%
13.6%SEK 572.22SEK 340.82SEK 575.2022
May ’24SEK 370.40
SEK 375.84
+1.5%
11.7%SEK 466.39SEK 309.41SEK 544.0021
Apr ’24SEK 356.10
SEK 361.91
+1.6%
12.5%SEK 456.50SEK 302.17SEK 494.9020
Mar ’24SEK 349.70
SEK 357.31
+2.2%
12.6%SEK 436.31SEK 284.97SEK 475.0020
Feb ’24SEK 364.20
SEK 343.70
-5.6%
14.0%SEK 451.41SEK 262.50SEK 454.6020
Jan ’24SEK 316.40
SEK 316.19
-0.07%
13.3%SEK 442.07SEK 263.12SEK 446.0020
Dec ’23SEK 324.60
SEK 320.80
-1.2%
12.2%SEK 421.37SEK 267.22SEK 420.7021
Nov ’23SEK 307.90
SEK 334.25
+8.6%
13.2%SEK 443.20SEK 286.09SEK 376.7021

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

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