* Note: Prices are in Million (M) USD.
Description:
AbbVie is an American publicly traded biopharmaceutical company founded in 2013. It originated as a spin-off of Abbott Laboratories.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $6,467 M
Debt : $0 M
EBITDA : $9,935 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Healthcare
Industry: Drug manufacturers - major
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 15.35
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 16 overlapping fiscal years (max 20).Average Free Cash Flow: $11,355 M
Average Revenue: $32,367 M
Revenue Converted To Free Cash Flow (%): 35.1%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $56,334 M
Revenue 4 Years Ago (2020-12-31): $45,804 M
Last 5 Years Average Revenue Growth: 5%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $1,773 M
Share Count 5 Years Ago (2020-12-31): $1,673 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $14.77
Trailing 12-Month Earnings Per Share (EPS): $12.32
Average Earnings Per Share (EPS): $13.55
Dividend Per Share (DPS): $6
Payout Ratio: 48%
Dividend Yield: 3%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 13 valid ROE years (max 20).Average ROE: 86.4%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $208
52-Week Low: $159
Threshold Price (15% Above 52-Week Low): $183
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $351,298 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 30 points to above AbbVie Inc (ABBV) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
38.07 (>2× median)
• ROE Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 12 Years Avg P/E (13.86)
× EPS ($13.55) = $187.73.
Last 12 Years Avg PE 13.86, Fair Value PE 15, Industry Based PE 15, Growth Based PE 4, RCFC Based PE 38.07, ROE Based PE 50, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 21.86. Value-Trades has assined P/E value 21.86. Since an average (Current Year EPS + Next Year EPS) earning per share is $13.545.
The fair value of AbbVie Inc (ABBV) stock should be (21.86 x $13.545) = $296.08.
