Abbott Laboratories Valuation

Is ABT * 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 ABT * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ABT * (MX$2350) is trading below our estimate of fair value (MX$2374.33)

Significantly Below Fair Value: ABT * is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ABT *. This is calculated by dividing ABT *'s market cap by their current earnings.
What is ABT *'s PE Ratio?
PE Ratio35.4x
EarningsUS$5.74b
Market CapUS$203.56b

Price to Earnings Ratio vs Peers

How does ABT *'s PE Ratio compare to its peers?

The above table shows the PE ratio for ABT * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average57.2x
ISRG Intuitive Surgical
85.6x11.5%US$189.4b
SYK Stryker
41.3x11.4%US$148.4b
MDT Medtronic
27.8x11.4%US$112.3b
BSX Boston Scientific
74.3x23.2%US$133.3b
ABT * Abbott Laboratories
35.4x11.6%Mex$203.6b

Price-To-Earnings vs Peers: ABT * is good value based on its Price-To-Earnings Ratio (35.4x) compared to the peer average (57.2x).


Price to Earnings Ratio vs Industry

How does ABT *'s PE Ratio compare vs other companies in the Global Medical Equipment Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies51PE020406080100+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABT * is expensive based on its Price-To-Earnings Ratio (35.4x) compared to the Global Medical Equipment industry average (27.7x).


Price to Earnings Ratio vs Fair Ratio

What is ABT *'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.

ABT * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ABT *'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 ABT * forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentMex$2,350.00
Mex$2,612.63
+11.2%
7.4%Mex$2,997.45Mex$2,092.18n/a24
Nov ’25Mex$2,315.00
Mex$2,585.53
+11.7%
7.6%Mex$2,922.34Mex$2,081.66n/a24
Oct ’25Mex$2,221.00
Mex$2,437.78
+9.8%
8.4%Mex$2,804.69Mex$2,039.77n/a23
Sep ’25Mex$2,211.50
Mex$2,437.83
+10.2%
8.5%Mex$2,815.77Mex$2,047.83n/a22
Aug ’25Mex$2,014.51
Mex$2,320.39
+15.2%
8.0%Mex$2,662.95Mex$1,936.69n/a22
Jul ’25Mex$1,910.00
Mex$2,127.07
+11.4%
7.6%Mex$2,430.44Mex$1,767.59n/a22
Jun ’25n/a
Mex$2,127.07
0%
7.6%Mex$2,430.44Mex$1,767.59n/a22
May ’25n/a
Mex$2,143.10
0%
7.5%Mex$2,425.82Mex$1,764.24n/a22
Apr ’25Mex$1,861.00
Mex$2,096.55
+12.7%
7.2%Mex$2,356.05Mex$1,737.80n/a22
Mar ’25Mex$2,049.00
Mex$2,135.83
+4.2%
7.2%Mex$2,410.85Mex$1,778.21n/a22
Feb ’25Mex$1,919.00
Mex$2,127.92
+10.9%
7.3%Mex$2,409.20Mex$1,777.00n/a21
Jan ’25n/a
Mex$1,996.27
0%
7.7%Mex$2,265.30Mex$1,703.23n/a21
Dec ’24Mex$1,759.99
Mex$2,129.84
+21.0%
7.9%Mex$2,436.67Mex$1,832.08n/a21
Nov ’24Mex$1,706.32
Mex$2,129.84
+24.8%
7.9%Mex$2,436.67Mex$1,832.08Mex$2,315.0021
Oct ’24Mex$1,760.00
Mex$2,109.38
+19.9%
6.5%Mex$2,317.90Mex$1,772.51Mex$2,221.0020
Sep ’24Mex$1,760.28
Mex$2,109.38
+19.8%
6.5%Mex$2,317.90Mex$1,772.51Mex$2,211.5020
Aug ’24Mex$1,868.00
Mex$2,100.05
+12.4%
6.3%Mex$2,302.36Mex$1,760.63Mex$2,014.5120
Jul ’24Mex$1,852.51
Mex$2,113.17
+14.1%
7.3%Mex$2,349.25Mex$1,779.21Mex$1,910.0021
Jun ’24Mex$1,805.53
Mex$2,148.07
+19.0%
7.7%Mex$2,401.73Mex$1,818.96n/a22
May ’24Mex$1,987.72
Mex$2,192.50
+10.3%
7.8%Mex$2,444.76Mex$1,851.55n/a21
Apr ’24Mex$1,767.00
Mex$2,173.00
+23.0%
7.7%Mex$2,532.96Mex$1,881.63Mex$1,861.0022
Mar ’24Mex$1,828.09
Mex$2,266.87
+24.0%
8.2%Mex$2,631.33Mex$1,954.70Mex$2,049.0022
Feb ’24Mex$2,076.00
Mex$2,266.87
+9.2%
8.2%Mex$2,631.33Mex$1,954.70Mex$1,919.0022
Jan ’24Mex$2,093.00
Mex$2,275.13
+8.7%
10.7%Mex$2,812.78Mex$1,797.05n/a24
Dec ’23Mex$2,065.00
Mex$2,282.22
+10.5%
10.9%Mex$2,829.50Mex$1,807.74Mex$1,759.9923
Nov ’23Mex$1,950.00
Mex$2,334.19
+19.7%
10.3%Mex$2,871.78Mex$1,834.75Mex$1,706.3223

Analyst Forecast: Target price is less than 20% higher than the current share price.


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