ABB Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: ABBN N (MX$1178.47) is trading above our estimate of fair value (MX$740.76)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ABBN N. This is calculated by dividing ABBN N's market cap by their current earnings.
What is ABBN N's PE Ratio?
PE Ratio26x
EarningsUS$3.88b
Market CapUS$100.58b

Price to Earnings Ratio vs Peers

How does ABBN N's PE Ratio compare to its peers?

The above table shows the PE ratio for ABBN N vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.4x
ETN Eaton
35.8x11.0%US$135.0b
EMR Emerson Electric
44.7x19.4%US$72.3b
SU Schneider Electric
34.8x14.0%€134.6b
GCARSO A1 Grupo Carso. de
18.2x15.6%Mex$256.0b
26x9.3%Mex$90.5b

Price-To-Earnings vs Peers: ABBN N is good value based on its Price-To-Earnings Ratio (26x) compared to the peer average (33.4x).


Price to Earnings Ratio vs Industry

How does ABBN N's PE Ratio compare vs other companies in the Global Electrical Industry?

31 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ABBN N 26.0xIndustry Avg. 26.9xNo. of Companies86PE020406080100+
31 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABBN N is good value based on its Price-To-Earnings Ratio (26x) compared to the Global Electrical industry average (27x).


Price to Earnings Ratio vs Fair Ratio

What is ABBN N'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.

ABBN N PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ABBN N's Price-To-Earnings Fair Ratio for valuation analysis.


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 ABBN N forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
Mex$1,099.32
0%
10.4%Mex$1,372.13Mex$887.04n/a22
Dec ’25n/a
Mex$1,104.43
0%
10.4%Mex$1,382.72Mex$893.88n/a21
Nov ’25Mex$1,096.14
Mex$1,076.79
-1.8%
8.9%Mex$1,277.20Mex$881.78n/a21
Oct ’25Mex$1,077.80
Mex$1,059.77
-1.7%
9.2%Mex$1,284.23Mex$880.10n/a21
Sep ’25Mex$1,081.04
Mex$974.53
-9.9%
12.2%Mex$1,220.86Mex$775.63n/a19
Aug ’25n/a
Mex$976.80
0%
12.4%Mex$1,227.79Mex$780.03n/a19
Jul ’25n/a
Mex$917.37
0%
13.6%Mex$1,194.07Mex$709.03n/a19
Jun ’25n/a
Mex$786.82
0%
9.4%Mex$936.46Mex$644.38n/a19
May ’25n/a
Mex$779.99
0%
10.3%Mex$958.50Mex$655.85n/a19
Apr ’25n/a
Mex$730.68
0%
9.8%Mex$859.52Mex$595.03n/a19
Mar ’25n/a
Mex$731.07
0%
12.6%Mex$884.66Mex$543.60n/a20
Feb ’25n/a
Mex$732.17
0%
12.1%Mex$895.61Mex$557.28n/a20
Jan ’25n/a
Mex$700.41
0%
12.7%Mex$851.15Mex$531.48n/a20
Dec ’24Mex$687.47
Mex$688.69
+0.2%
12.7%Mex$862.33Mex$538.46n/a20
Nov ’24n/a
Mex$720.16
0%
13.9%Mex$969.74Mex$570.88Mex$1,096.1420
Oct ’24n/a
Mex$703.90
0%
12.6%Mex$979.81Mex$568.31Mex$1,077.8021
Sep ’24n/a
Mex$686.06
0%
12.7%Mex$966.10Mex$550.58Mex$1,081.0422
Aug ’24n/a
Mex$673.98
0%
11.4%Mex$885.59Mex$545.85n/a22
Jul ’24n/a
Mex$648.74
0%
13.0%Mex$899.15Mex$538.22n/a21
Jun ’24n/a
Mex$656.83
0%
13.6%Mex$932.48Mex$555.40n/a22
May ’24n/a
Mex$659.06
0%
11.7%Mex$817.84Mex$542.56n/a21
Apr ’24n/a
Mex$628.40
0%
12.5%Mex$792.63Mex$524.67n/a20
Mar ’24n/a
Mex$635.81
0%
12.6%Mex$776.38Mex$507.08n/a20
Feb ’24n/a
Mex$625.18
0%
14.0%Mex$821.09Mex$477.48n/a20
Jan ’24n/a
Mex$604.27
0%
13.3%Mex$844.85Mex$502.86n/a20
Dec ’23n/a
Mex$589.43
0%
12.2%Mex$774.23Mex$490.99Mex$687.4721

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


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/25 14:13
End of Day Share Price 2024/12/18 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

ABB Ltd is covered by 69 analysts. 26 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Anders IdborgABG Sundal Collier
Guenther HollfelderBaader Helvea Equity Research
Stefan GächterBaader Helvea Equity Research