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AbbVie Inc (ABBV)

Overvalued
HealthcareDrug Manufacturers - GeneralUnited States

Fundamental

73

Price

$261.59

Market Cap

$470.55B

Part 1 · What the company is worth

Overview

AbbVie Inc., a research-based biopharmaceutical company, engages in the research and development, manufacturing, commercializing, and sale of medicines and therapies worldwide. The company offers Skyrizi to treat autoimmune diseases; Rinvoq to treat inflammatory diseases; Imbruvica for the treatment of adult patients with blood cancers; Venclexta to treat blood cancers; Elahere to treat various cancer; and Epkinly to treat lymphoma; and Emrelis for the treatment of lung cancer. It also provides facial injectables, plastics and regenerative medicine, body contouring, and skincare products; botox Cosmetic for the treatment of glabellar lines, crow's feet, forehead lines, and platysma bands; Juvederm Collection to treat volume loss in the temples, undereye, cheeks, chin, lips and lower face; Vraylar to treat schizophrenia, bipolar disorder, and depressive disorder; Duodopa to treat Parkinson's disease; Ubrelvy to treat migraine; Qulipta for episodic and chronic migraine; and Vyalev for the treatment of motor fluctuations, as well as Botox Therapeutic to treat chronic migraine, overactive bladder, spasticity, cervical dystonia, and other conditions. In addition, the company offers Ozurdex for visual impairment; Lumigan/Ganfort and Alphagan/Combigan for the reduction of elevated intraocular pressure in patients with open angle glaucoma or ocular hypertension; and other eye care products, including Refresh/Optive, Xen, Durysta, and Restasis. Further, it provides Mavyret to treat chronic hepatitis C virus genotype 1-6 infection; Creon, a pancreatic enzyme therapy; and Linzess/Constella to treat irritable bowel syndrome with constipation and chronic idiopathic constipation. The company was incorporated in 2012 and is headquartered in North Chicago, Illinois.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

Compare

Generated on September 17, 2026 with claude-haiku-4-5 — shared with all users

P/E: 30.7Score: 68Market cap: $655.37B

Its Stelara and Tremfya go head-to-head with AbbVie's Skyrizi for the same psoriasis and inflammatory bowel disease patients, the franchise that now drives most of AbbVie's revenue.

P/E: 38.8Score: 78Market cap: $1.11T

Lilly sells Omvoh and Taltz against Skyrizi in psoriasis and ulcerative colitis, and Olumiant against Rinvoq among JAK inhibitors, prescribed by the same specialists.

P/E: 37.5Score: 74Market cap: $163.69B

Pfizer's Xeljanz and Velsipity compete with Rinvoq in rheumatology and ulcerative colitis, while Nurtec challenges AbbVie's migraine drugs for the same prescriptions.

P/E: 13.7Score: 73Market cap: $130.49B

Its Sotyktu and Zeposia target the same psoriasis and inflammatory bowel disease patients as Skyrizi and Rinvoq, and both firms compete in blood-cancer treatments.

P/E: 26.2Score: 78Market cap: $219.52B

Amgen takes revenue directly from AbbVie with Amjevita, the leading Humira biosimilar, and with Otezla in psoriasis.

Novartis AGNVS

Cosentyx competes directly with Skyrizi for psoriasis and axial spondyloarthritis patients, and Novartis also disputes the same oncology and neuroscience budgets.

Balance Sheet & Liquidity

Revenue

$64.39B

Trailing 12 months (through 6/30/2026)

Net Income

$6.31B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$17.82B

Total Equity

$-3.27B

Total Liabilities

$137.19B

Current Ratio

0.81

Interest Coverage

5.21

Debt/EBITDA

2.30

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseOvervalued

Fair Value

$180.02

Current Price

$261.59

Margin of Safety

-45.3%

Fair Value Range

$117.02 - $243.03

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$278.56
Discounted cash flow (DCF):$248.37
Earnings multiple (P/E):$60.12
Graham growth formula:$26.55
Earnings power value (EPV):$94.06
Justified P/B:$22.51
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:$216.25
Revenue multiple:$143.24
Analyst Consensus:Strong Buy (32B / 7H / 0S)
Last Earnings Surprise:-0.71%

Valuation Metrics

P/E Ratio

73.90

ROE

-129.2%

P/B Ratio

-

P/FCF

25.38

Gross Margin

71.5%

ROIC

13.1%

Profitability Radar

Value Creation (Economic Moat)

ROIC

13.1%

WACC

7.4%

ROIC − WACC

+5.8 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (19)

  • EPS shows upward trend
  • Price CAGR 15.17%
  • ROIC 13.1%
  • Gross Margin 71.5%
  • P/FCF 25.38
  • Operating Margin 24.6%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 95.6%
  • Revenue Growth 5Y 6.0%
  • Analyst Consensus 82% Buy
  • Earnings Quality (OCF/NI) 3.09
  • Share Dilution 0.0%
  • Net Margin Trend 9.8% vs 6.5%
  • Piotroski F-Score 7/9

Failed (4)

  • EPS CAGR 0.57%
  • Low reliance on intangibles
  • DCF valuation (Overvalued)
  • Earnings Surprise avg 0.6%

Unavailable (5)

  • P/B Ratio NaN
  • Dividend Payout NaN%
  • Debt/Equity ratio
  • Price below Graham Number
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

3.09

High quality: earnings backed by cash

Share Dilution

0.0%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Scott T. ReentsExecutive VP & CFO58
Dr. Azita Saleki Ph.D.Executive VP & COO62
Dr. Roopal B. Thakkar M.D.Executive VP of Research & Development and Chief Scientific Officer53
Mr. Jeffrey Ryan StewartExecutive VP & Chief Commercial Officer56
Ms. Linda RaySenior VP & Chief Information Officer-
Ms. Elizabeth SheaSenior Vice President of Investor Relations-
Mr. Perry C. SiatisExecutive VP, General Counsel & Secretary50
Mr. Demetris D. CrumExecutive VP & Chief Human Resources Officer44
Mr. Wulff-Erik von BorckeSenior VP & President of Oncology-
Dr. Nicholas J. Donoghoe M.D.Executive VP and Chief Business & Strategy Officer44

Audit Risk

6

Board Risk

5

Compensation Risk

2

Shareholder Rights Risk

9

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-20

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-03

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-03

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for ABBV, sourced from Markets Gazette.

  • 8/4/2026NEUTRAL
    AbbVie Seeks at Least $8 Billion in Debt to Fund Apogee Deal

    AbbVie Inc. is planning a significant debt issuance, aiming to raise at least $8 billion through an investment-grade bond offering. This move is intended to finance a portion of its acquisition of Apogee Therapeutics Inc. The company's strategy to fund acquisitions via debt indicates a proactive approach to growth, but the substantial borrowing may also introduce financial leverage risks. Investors will monitor the terms of the debt and the integration progress of Apogee to assess the long-term impact on AbbVie's financial health and stock performance.

  • 8/4/2026POSITIVE
    AbbVie Sees Strong Demand for Its $10 Billion M&A Bond Sale

    AbbVie Inc. successfully priced a $10 billion investment-grade bond offering, indicating strong investor demand. This comes at a time when many investors have shown fatigue with new debt issuances aimed at funding artificial intelligence initiatives. The robust uptake of AbbVie's bonds suggests a preference for established pharmaceutical companies with solid fundamentals over speculative tech-related debt. The offering's success provides AbbVie with ample liquidity for its strategic M&A activities, potentially enhancing its long-term growth prospects and shareholder value.

  • 6/26/2026POSITIVE
    Healthcare stocks have become a haven for investors ditching tech

    AbbVie Inc. is poised to reach new all-time highs, reflecting a resurgent investor interest in the biopharmaceutical sector. This trend, also seen with peers Eli Lilly and Johnson & Johnson, suggests a strategic shift by investors moving capital away from technology stocks towards healthcare. The sector's perceived stability and defensive qualities are attracting capital, potentially signaling a rotation driven by macroeconomic uncertainty or a reassessment of growth prospects across different industries. For investors, this indicates a potential opportunity in healthcare, especially in companies demonstrating strong fundamentals and innovation.

  • 6/22/2026POSITIVE
    AbbVie to Buy Apogee Therapeutics for $10.9 Billion

    AbbVie Inc. is set to acquire Apogee Therapeutics for $10.9 billion, a strategic move to bolster its dermatology pipeline. The acquisition includes Apogee's promising treatments for atopic dermatitis, commonly known as eczema. This deal significantly enhances AbbVie's market position in the lucrative dermatology sector. For investors, this acquisition signals AbbVie's commitment to expanding its therapeutic offerings and driving future growth through targeted M&A activity, potentially leading to increased revenue streams and market share.

  • 6/20/2026POSITIVE
    AbbVie would gain an experimental eczema drug by buying biotech: report

    AbbVie Inc. is reportedly in advanced talks to acquire a biotechnology firm for $10.9 billion in cash, seeking to bolster its pipeline with a promising experimental drug for atopic dermatitis. This strategic move aims to diversify AbbVie's revenue streams beyond its current blockbuster treatments and secure future growth in the dermatology sector. The acquisition, if successful, could significantly enhance AbbVie's market position and offer substantial long-term value to its shareholders by integrating innovative therapies into its portfolio.

  • 6/11/2026POSITIVE
    AbbVie, Devon Energy And More On CNBC's 'Final Trades'

    CNBC's 'Final Trades' segment highlighted AbbVie Inc. (ABBV) as a top pick, citing its growth prospects driven by an expanded drug label. This positive outlook suggests potential for increased revenue and market share for the biopharmaceutical company. Investors may view this endorsement as a signal of strong upcoming performance, potentially leading to increased demand for ABBV shares.

  • 6/5/2026POSITIVE
    AbbVie, Oracle, Apple And More On CNBC's 'Final Trades'

    Bryn Talkington has selected AbbVie Inc. as a 'Final Trade' with a price target of $232, indicating a bullish outlook for the pharmaceutical company. While other stocks like Entegris, Oracle, and Apple were also mentioned, AbbVie was specifically highlighted with a concrete target. This endorsement from a CNBC analyst suggests potential upside for investors, driven by the analyst's conviction in AbbVie's future performance and valuation.

  • 3/18/2026NEGATIVE
    What's Going On With AbbVie Stock Today?

    AbbVie Inc. (NASDAQ: ABBV) shares experienced a downturn today, trading lower as a competitor announced substantial advancements in developing a treatment for plaque psoriasis. This development introduces increased competition in a key therapeutic area for AbbVie. Investors are likely reassessing AbbVie's market position and future revenue streams in light of this new competitive threat. The news suggests potential market share erosion or pricing pressure, impacting the stock's valuation.

via Markets Gazette