ABB Ltd

OM:ABB Stock Report

Market Cap: SEK 1.5t

ABB Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: ABB (SEK848.2) is trading above our estimate of future cash flow value (SEK673.96)

Significantly Below Future Cash Flow Value: ABB 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 ABB?

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

The above table shows the Price to Earnings ratio for ABB. This is calculated by dividing ABB's market cap by their current earnings.
What is ABB's PE Ratio?
PE Ratio36.9x
EarningsUS$4.56b
Market CapUS$168.06b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ABB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.8x
AQ AQ Group
29.1x8.73%SEK 19.7b
ATCO A Atlas Copco
33.7x8.97%SEK 856.9b
VOLV B AB Volvo
18.8x12.56%SEK 648.5b
SAND Sandvik
33.7x11.89%SEK 494.4b
ABB ABB
36.9x7.65%SEK 131.4b

Price-To-Earnings vs Peers: ABB is expensive based on its Price-To-Earnings Ratio (36.9x) compared to the peer average (28.8x).

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 ABB's PE Ratio compare vs other companies in the European Electrical Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ABB 36.9xIndustry Avg. 22.7xNo. of Companies11PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABB is expensive based on its Price-To-Earnings Ratio (36.9x) compared to the European Electrical industry average (23x).

Price to Earnings Ratio vs Fair Ratio

What is ABB'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.

ABB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.9x
Fair PE Ratio37.4x

Price-To-Earnings vs Fair Ratio: ABB is good value based on its Price-To-Earnings Ratio (36.9x) compared to the estimated Fair Price-To-Earnings Ratio (37.4x).

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 ABB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 848.20
SEK 761.01
-10.28%
10.87%SEK 926.50SEK 641.48n/a28
Apr ’27SEK 781.20
SEK 773.73
-0.96%
12.16%SEK 957.91SEK 626.32n/a28
Mar ’27SEK 843.60
SEK 732.83
-13.13%
12.52%SEK 913.06SEK 597.00n/a27
Feb ’27SEK 767.40
SEK 692.44
-9.77%
12.90%SEK 878.13SEK 508.46n/a27
Jan ’27SEK 687.80
SEK 658.25
-4.30%
13.82%SEK 898.46SEK 498.33n/a26
Dec ’26SEK 673.80
SEK 666.34
-1.11%
12.68%SEK 820.60SEK 513.42n/a25
Nov ’26SEK 705.40
SEK 653.48
-7.36%
13.91%SEK 811.68SEK 474.94n/a25
Oct ’26SEK 676.00
SEK 608.04
-10.05%
11.98%SEK 759.09SEK 458.59n/a22
Sep ’26SEK 628.40
SEK 592.26
-5.75%
11.83%SEK 736.48SEK 438.05n/a23
Aug ’26SEK 624.60
SEK 600.37
-3.88%
11.93%SEK 753.01SEK 447.88n/a22
Jul ’26SEK 559.40
SEK 544.90
-2.59%
10.50%SEK 656.27SEK 428.19n/a24
Jun ’26SEK 541.80
SEK 540.44
-0.25%
10.97%SEK 660.20SEK 432.52n/a24
May ’26SEK 507.60
SEK 554.24
+9.19%
11.45%SEK 671.42SEK 403.74n/a24
Apr ’26SEK 520.40
SEK 560.91
+7.79%
12.46%SEK 727.21SEK 414.84SEK 781.2024
Mar ’26SEK 574.40
SEK 588.24
+2.41%
11.21%SEK 709.48SEK 445.34SEK 843.6023
Feb ’26SEK 607.20
SEK 594.23
-2.14%
11.32%SEK 733.10SEK 459.23SEK 767.4022
Jan ’26SEK 595.40
SEK 601.76
+1.07%
10.51%SEK 748.31SEK 482.78SEK 687.8023
Dec ’25SEK 619.60
SEK 590.60
-4.68%
10.37%SEK 741.05SEK 478.10SEK 673.8021
Nov ’25SEK 596.80
SEK 570.71
-4.37%
8.85%SEK 677.13SEK 467.49SEK 705.4021
Oct ’25SEK 595.00
SEK 554.81
-6.75%
9.24%SEK 672.32SEK 460.75SEK 676.0021
Sep ’25SEK 587.20
SEK 550.83
-6.19%
12.16%SEK 690.07SEK 438.41SEK 628.4019
Aug ’25SEK 575.00
SEK 561.47
-2.35%
12.45%SEK 705.75SEK 448.37SEK 624.6019
Jul ’25SEK 592.60
SEK 529.60
-10.63%
13.56%SEK 689.34SEK 409.33SEK 559.4019
Jun ’25SEK 575.60
SEK 504.82
-12.30%
9.38%SEK 600.83SEK 413.43SEK 541.8019
May ’25SEK 544.20
SEK 501.86
-7.78%
10.26%SEK 616.71SEK 421.99SEK 507.6019
Apr ’25SEK 494.60
SEK 474.38
-4.09%
9.80%SEK 558.31SEK 386.51SEK 520.4019
SEK 761.02
Fair Value
11.5% overvalued intrinsic discount
28
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/04/15 00:07
End of Day Share Price 2026/04/15 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

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.

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. 27 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullABG Sundal Collier
Guenther HollfelderBaader Helvea Equity Research
Stefan GächterBaader Helvea Equity Research