ABB Valuation
Is ABBS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
0/6Valuation Score 0/6
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 ABBS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
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Below Future Cash Flow Value: ABBS (SEK1015.5) is trading above our estimate of future cash flow value (SEK518.04)
Significantly Below Future Cash Flow Value: ABBS 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 ABBS?
Key metric: As ABBS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is ABBS's PE Ratio? | |
|---|---|
| PE Ratio | 38.9x |
| Earnings | US$4.86b |
| Market Cap | US$189.36b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 5.6x |
| Enterprise Value/EBITDA | 27.6x |
| PEG Ratio | 5.3x |
Price to Earnings Ratio vs Peers
How does ABBS's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 21.7x | ||
RR. Rolls-Royce Holdings | 19.9x | -3.09% | UK£116.1b |
VLX Volex | 19.9x | -5.00% | UK£991.7m |
DSCV discoverIE Group | 22x | 7.80% | UK£638.3m |
BA. BAE Systems | 24.9x | 12.03% | UK£51.3b |
ABBS ABB | 38.9x | 7.34% | SEK 153.3b |
Price-To-Earnings vs Peers: ABBS is expensive based on its Price-To-Earnings Ratio (38.9x) compared to the peer average (21.7x).
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 ABBS's PE Ratio compare vs other companies in the European Electrical Industry?
| 5 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 5 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: ABBS is expensive based on its Price-To-Earnings Ratio (38.9x) compared to the European Electrical industry average (26.9x).
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 38.9x |
| Fair PE Ratio | 31.6x |
Price-To-Earnings vs Fair Ratio: ABBS is expensive based on its Price-To-Earnings Ratio (38.9x) compared to the estimated Fair Price-To-Earnings Ratio (31.6x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | SEK 1,015.50 | SEK 921.90 -9.22% | 12.68% | SEK 1,180.29 | SEK 711.91 | n/a | 28 |
| Jun ’27 | SEK 984.00 | SEK 855.48 -13.06% | 11.89% | SEK 1,128.68 | SEK 680.78 | n/a | 28 |
| May ’27 | SEK 914.40 | SEK 815.98 -10.76% | 10.21% | SEK 954.89 | SEK 671.96 | n/a | 27 |
| Apr ’27 | SEK 779.50 | SEK 773.67 -0.75% | 11.93% | SEK 946.77 | SEK 626.32 | n/a | 27 |
| Mar ’27 | SEK 842.80 | SEK 735.50 -12.73% | 12.08% | SEK 902.45 | SEK 597.00 | n/a | 27 |
| Feb ’27 | SEK 764.80 | SEK 695.48 -9.06% | 12.70% | SEK 878.13 | SEK 508.46 | n/a | 27 |
| Jan ’27 | SEK 689.80 | SEK 658.25 -4.57% | 13.82% | SEK 898.46 | SEK 498.33 | n/a | 26 |
| Dec ’26 | SEK 674.80 | SEK 666.34 -1.25% | 12.68% | SEK 820.60 | SEK 513.42 | n/a | 25 |
| Nov ’26 | SEK 704.60 | SEK 653.48 -7.26% | 13.91% | SEK 811.68 | SEK 474.94 | n/a | 25 |
| Oct ’26 | SEK 675.40 | SEK 608.04 -9.97% | 11.98% | SEK 759.09 | SEK 458.59 | n/a | 22 |
| Sep ’26 | SEK 628.60 | SEK 592.26 -5.78% | 11.83% | SEK 736.48 | SEK 438.05 | n/a | 23 |
| Aug ’26 | SEK 623.60 | SEK 600.37 -3.72% | 11.93% | SEK 753.01 | SEK 447.88 | n/a | 22 |
| Jul ’26 | SEK 559.40 | SEK 544.90 -2.59% | 10.50% | SEK 656.27 | SEK 428.19 | n/a | 24 |
| Jun ’26 | SEK 542.80 | SEK 540.44 -0.44% | 10.97% | SEK 660.20 | SEK 432.52 | SEK 984.00 | 24 |
| May ’26 | SEK 507.40 | SEK 554.24 +9.23% | 11.45% | SEK 671.42 | SEK 403.74 | SEK 914.40 | 24 |
| Apr ’26 | SEK 519.40 | SEK 560.91 +7.99% | 12.46% | SEK 727.21 | SEK 414.84 | SEK 779.50 | 24 |
| Mar ’26 | SEK 576.40 | SEK 588.24 +2.05% | 11.21% | SEK 709.48 | SEK 445.34 | SEK 842.80 | 23 |
| Feb ’26 | SEK 608.00 | SEK 594.23 -2.27% | 11.32% | SEK 733.10 | SEK 459.23 | SEK 764.80 | 22 |
| Jan ’26 | SEK 596.60 | SEK 601.76 +0.86% | 10.51% | SEK 748.31 | SEK 482.78 | SEK 689.80 | 23 |
| Dec ’25 | SEK 622.00 | SEK 590.60 -5.05% | 10.37% | SEK 741.05 | SEK 478.10 | SEK 674.80 | 21 |
| Nov ’25 | SEK 597.20 | SEK 570.71 -4.44% | 8.85% | SEK 677.13 | SEK 467.49 | SEK 704.60 | 21 |
| Oct ’25 | SEK 594.80 | SEK 554.81 -6.72% | 9.24% | SEK 672.32 | SEK 460.75 | SEK 675.40 | 21 |
| Sep ’25 | SEK 587.00 | SEK 550.83 -6.16% | 12.16% | SEK 690.07 | SEK 438.41 | SEK 628.60 | 19 |
| Aug ’25 | SEK 575.00 | SEK 561.47 -2.35% | 12.45% | SEK 705.75 | SEK 448.37 | SEK 623.60 | 19 |
| Jul ’25 | SEK 592.80 | SEK 529.60 -10.66% | 13.56% | SEK 689.34 | SEK 409.33 | SEK 559.40 | 19 |
| Jun ’25 | SEK 575.20 | SEK 504.82 -12.24% | 9.38% | SEK 600.83 | SEK 413.43 | SEK 542.80 | 19 |
Analyst Forecast: Target price is lower than the current share price.
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/06/28 09:15 |
| End of Day Share Price | 2026/06/26 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
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.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
| |
| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
| |
| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* 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 54 analysts. 29 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| null null | ABG Sundal Collier |
| Guenther Hollfelder | Baader Helvea Equity Research |
| Stefan Gächter | Baader Helvea Equity Research |