AbbVie Inc.

NYSE:ABBV Stock Report

Market Cap: US$312.7b

AbbVie Valuation

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

Below Fair Value: ABBV ($176.95) is trading below our estimate of fair value ($467.79)

Significantly Below Fair Value: ABBV is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ABBV. This is calculated by dividing ABBV's market cap by their current earnings.
What is ABBV's PE Ratio?
PE Ratio61.5x
EarningsUS$5.08b
Market CapUS$312.70b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ABBV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.4x
AMGN Amgen
37.4x19.1%US$158.3b
REGN Regeneron Pharmaceuticals
17.1x7.6%US$79.4b
BIIB Biogen
14.2x12.4%US$23.0b
HZNP Horizon Therapeutics
60.8x16.4%US$26.6b
ABBV AbbVie
61.5x28.1%US$312.7b

Price-To-Earnings vs Peers: ABBV is expensive based on its Price-To-Earnings Ratio (61.5x) compared to the peer average (22.9x).

Price to Earnings Ratio vs Industry

How does ABBV's PE Ratio compare vs other companies in the US Biotechs Industry?

11 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ROIV Roivant Sciences
2x-46.3%US$9.12b
AGIO Agios Pharmaceuticals
4.7x-56.7%US$3.18b
INBX Inhibrx Biosciences
0.1xn/aUS$203.82m
DTIL Precision BioSciences
4.9x-41.0%US$55.69m
ABBV 61.5xIndustry Avg. 16.6xNo. of Companies11PE020406080100+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABBV is expensive based on its Price-To-Earnings Ratio (61.5x) compared to the US Biotechs industry average (16.6x).

Price to Earnings Ratio vs Fair Ratio

What is ABBV'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.

ABBV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio61.5x
Fair PE Ratio48.2x

Price-To-Earnings vs Fair Ratio: ABBV is expensive based on its Price-To-Earnings Ratio (61.5x) compared to the estimated Fair Price-To-Earnings Ratio (48.2x).

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 ABBV forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$176.95
US$204.74
+15.7%
8.0%US$240.00US$165.00n/a29
Nov ’25US$203.55
US$207.80
+2.1%
7.8%US$240.00US$170.00n/a28
Oct ’25US$196.96
US$196.54
-0.2%
7.0%US$218.00US$170.00n/a26
Sep ’25US$196.31
US$196.30
-0.005%
6.9%US$218.00US$170.00n/a27
Aug ’25US$189.71
US$194.23
+2.4%
7.0%US$215.00US$170.00n/a27
Jul ’25US$170.37
US$183.67
+7.8%
5.7%US$207.00US$168.00n/a27
Jun ’25US$161.24
US$182.60
+13.2%
6.1%US$207.00US$161.00n/a27
May ’25US$161.72
US$183.11
+13.2%
5.8%US$206.00US$161.00n/a27
Apr ’25US$180.76
US$183.88
+1.7%
6.3%US$206.00US$161.00n/a27
Mar ’25US$178.91
US$180.74
+1.0%
7.2%US$206.00US$153.00n/a26
Feb ’25US$167.59
US$172.42
+2.9%
9.4%US$205.00US$135.00n/a27
Jan ’25US$154.97
US$167.78
+8.3%
10.6%US$201.00US$126.00n/a28
Dec ’24US$143.41
US$167.35
+16.7%
10.6%US$201.00US$126.00n/a28
Nov ’24US$142.47
US$167.92
+17.9%
10.7%US$205.00US$126.00US$203.5527
Oct ’24US$149.06
US$166.77
+11.9%
10.7%US$205.00US$126.00US$196.9627
Sep ’24US$148.20
US$166.33
+12.2%
10.7%US$205.00US$126.00US$196.3127
Aug ’24US$148.54
US$164.77
+10.9%
10.6%US$201.00US$126.00US$189.7128
Jul ’24US$134.73
US$164.60
+22.2%
11.3%US$201.00US$120.00US$170.3725
Jun ’24US$133.44
US$164.60
+23.4%
11.3%US$201.00US$120.00US$161.2425
May ’24US$153.71
US$164.64
+7.1%
10.7%US$195.00US$120.00US$161.7225
Apr ’24US$159.37
US$164.04
+2.9%
10.9%US$200.00US$120.00US$180.7624
Mar ’24US$155.27
US$163.08
+5.0%
11.1%US$200.00US$120.00US$178.9125
Feb ’24US$146.60
US$162.24
+10.7%
11.3%US$200.00US$120.00US$167.5925
Jan ’24US$161.61
US$159.52
-1.3%
11.3%US$200.00US$120.00US$154.9725
Dec ’23US$161.63
US$158.25
-2.1%
11.2%US$200.00US$120.00US$143.4124
Nov ’23US$146.91
US$156.91
+6.8%
11.6%US$200.00US$120.00US$142.4723

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

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