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 (SEK587.6) is trading above our estimate of fair value (SEK513.3)

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?

Other financial metrics that can be useful for relative valuation.

ABBS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.3x
Enterprise Value/EBITDA18.7x
PEG Ratio3.2x

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 Average24.5x
DSCV discoverIE Group
41.8x18.6%UK£647.6m
BA. BAE Systems
21.4x6.7%UK£39.8b
VLX Volex
19.2xn/aUK£595.0m
RR. Rolls-Royce Holdings
15.8x-3.9%UK£38.0b
ABBS ABB
27.9x8.8%SEK 91.2b

Price-To-Earnings vs Peers: ABBS is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the peer average (24.4x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a32.8%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a32.8%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: ABBS is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the European Electrical industry average (18.5x).

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 Ratio27.9x
Fair PE Ratio31.3x

Price-To-Earnings vs Fair Ratio: ABBS is good value based on its Price-To-Earnings Ratio (27.9x) compared to the estimated Fair Price-To-Earnings Ratio (31.3x).

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 ABBS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 587.60
SEK 530.17
-9.8%
13.6%SEK 689.34SEK 408.25n/a19
Jun ’25SEK 575.20
SEK 505.00
-12.2%
9.4%SEK 600.83SEK 412.34n/a19
May ’25SEK 544.00
SEK 502.04
-7.7%
10.3%SEK 616.71SEK 421.99n/a19
Apr ’25SEK 494.90
SEK 474.94
-4.0%
9.8%SEK 558.31SEK 386.51n/a19
Mar ’25SEK 475.00
SEK 440.93
-7.2%
12.7%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 348.18n/a20
Oct ’24SEK 390.30
SEK 438.05
+12.2%
12.6%SEK 609.75SEK 353.67n/a21
Sep ’24SEK 415.00
SEK 441.73
+6.4%
12.7%SEK 622.04SEK 354.50n/a22
Aug ’24SEK 418.60
SEK 423.98
+1.3%
11.4%SEK 557.11SEK 343.38n/a22
Jul ’24SEK 423.60
SEK 408.72
-3.5%
13.0%SEK 566.49SEK 339.09n/a21
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
Oct ’23SEK 292.90
SEK 366.05
+25.0%
14.0%SEK 467.87SEK 300.20SEK 390.3021
Sep ’23SEK 290.30
SEK 358.14
+23.4%
13.7%SEK 455.22SEK 292.08SEK 415.0021
Aug ’23SEK 304.80
SEK 338.38
+11.0%
13.4%SEK 426.69SEK 273.78SEK 418.6021
Jul ’23SEK 271.80
SEK 360.26
+32.5%
11.6%SEK 434.31SEK 280.71SEK 423.6021
Jun ’23SEK 301.70
SEK 351.44
+16.5%
11.6%SEK 414.98SEK 268.21SEK 400.8020

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

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