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ABB Ltd (ABBN) Fair Value & Analysis

Industrials · CH · Market cap CHF 152B · ISIN CH0012221716

What is ABB Ltd really worth?

AL ABB Ltd ABBN · SW
PriceCHF 77.76
Fair ValueCHF 28.70
Upside−63.1%
Quality74/100

A solid business, but trading 171% above our fair value of CHF 28.70.

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Strengths

Healthy Growth (revenue 5y +4.9 %/yr)
Solidly profitable · 14.3% net margin
Low debt · generates free cash flow
Wide moat 72/100

Risks

!Mixed vs. peers (7/15)
!Weak on dividend: 24 out of 100

For context

·1.21% dividend yield
Evidence: High Range CHF 20.04 – CHF 43.60

Fair value as of: Aug 31, 2026

From 24 valuation models · updated 5 days ago

Fair value updated Aug 31, 2026, revised from CHF 28.56 to CHF 28.70 (+0.5%) since Aug 27, 2026. Share price −5.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A high-quality business (quality 74/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (CHF 43.60). The favourable scenario is already priced in.
  • A fairly wide model range (CHF 20.04 to CHF 43.60) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

CHF 88.56 CHF 21.07 Fair Value CHF 28.70 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.

How to read this chart

60‑month range CHF 21.07 – CHF 88.56 · fair‑value band CHF 20.04 – CHF 43.60 · the CHF 77.76 price screens above the CHF 28.70 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 31, 2026.

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Analysis

ABB Ltd (ABBN) currently trades at CHF 77.76, while our model-based Fair Value estimate is CHF 28.70, implying the stock looks roughly 170.9% overvalued today. The Quality Score stands at 74/100 (solid quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of CHF 41.44 per share, and 0 of the 24 models we run sit above the CHF 77.76 price. Bear case: the Asset-Based group reads lowest at CHF 5.94, and 24 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, ABB Ltd generated revenue of CHF 34.6B at a net margin of 14.3%. Revenue grew 18.3% year over year. It earns a return on equity of 33.6%. Net debt stands at CHF 4.5B. Fundamentals as of Aug 31, 2026

Our scenario range runs from CHF 20.04 (bear case) to CHF 43.60 (bull case); at CHF 77.76, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 74% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at −63%, ABBN screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly CHF 0.7850 per share, which is 2.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence CHF 22.93 CHF 31.56 CHF 48.96 80
Growth DCF CHF 23.94 CHF 32.40 CHF 47.99 78
Owner Earnings CHF 23.36 CHF 32.14 CHF 49.84 76
All 24 models by family
DCF Models
FCF DCF best evidence CHF 22.93 CHF 31.56 CHF 48.96 80
Owner Earnings CHF 23.36 CHF 32.14 CHF 49.84 76
5Y Revenue Exit CHF 20.83 CHF 30.60 CHF 45.34 72
5Y EBITDA Exit CHF 26.43 CHF 40.10 CHF 58.86 75
5Y P/E Exit CHF 29.61 CHF 45.51 CHF 65.13 70
10Y Revenue Exit CHF 20.81 CHF 29.37 CHF 39.02 67
10Y EBITDA Exit CHF 24.87 CHF 35.61 CHF 47.70 69
10Y P/E Exit CHF 26.82 CHF 39.16 CHF 51.73 64
Earnings-Based
Graham-Dodd CHF 17.74 CHF 28.52 CHF 34.39 67
EPV CHF 20.07 CHF 23.71 CHF 26.89 74
Dividend Discount
Gordon GGM CHF 9.65 CHF 11.63 CHF 13.78 69
DDM Multi-Stage CHF 9.65 CHF 12.82 CHF 16.79 67
Multiples
P/E Multiple CHF 41.08 CHF 54.78 CHF 68.47 63
P/S Multiple CHF 27.46 CHF 36.61 CHF 45.76 58
P/B Multiple CHF 29.92 CHF 39.89 CHF 49.86 55
EV/EBIT CHF 38.49 CHF 51.91 CHF 65.32 66
EV/EBITDA CHF 33.39 CHF 45.10 CHF 56.82 67
EV/Revenue CHF 21.31 CHF 31.19 CHF 41.08 53
Asset-Based
NCAV (Graham) CHF 4.43 CHF 5.94 CHF 8.86 54
Growth DCF
Growth DCF CHF 23.94 CHF 32.40 CHF 47.99 78
Rev-Margin DCF CHF 20.83 CHF 31.16 CHF 44.29 72
Economic Profit
Residual Income CHF 17.15 CHF 22.85 CHF 132.49 64
ROIC Compounder CHF 20.39 CHF 24.66 CHF 29.32 72
Growth Earnings
Growth-Adj P/E CHF 29.01 CHF 41.44 CHF 53.88 67

Widest divergence: Growth Earnings (CHF 41.44) versus Asset-Based (CHF 5.94). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 36.0
P/S ratio 5.13 P/E × margin
EPS (TTM) CHF 2.16 price ÷ EPS = P/E 36.0
Dividend yield 1.2% payout 43.5%
Net margin 14.3% FY2025
Return on equity 33.6% TTM
More key figures
Profitability
Return on assets (EBIT) 11.8% avg 5y
Operating margin 20.6% TTM
Growth
Revenue (TTM) CHF 34.6B TTM
Revenue growth (YoY) +18.3% 3y avg +4.1%
EPS growth (YoY) +21.2%
Balance sheet & cash flow
Free cash flow CHF 4.5B FY2025
Net debt CHF 4.5B FY2025 · ≈ 1.0 yrs of FCF

Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 74/100

Of which business quality 70 · Market factors (momentum, volatility) 70

Profitability 67
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 71
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 67
Price trend over the last 3–12 months (market factor)
52W Momentum 81
Distance to the 52-week high (market factor)
Net Issuance 96
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

ABB Ltd provides electrification, motion, and automation solutions and products for customers in utilities, industry and transport, and infrastructure in Europe, the Americas, Asia, the Middle East, and Africa. The company operates through Electrification, Motion, and Automation segments.

Full company description

ABB Ltd provides electrification, motion, and automation solutions and products for customers in utilities, industry and transport, and infrastructure in Europe, the Americas, Asia, the Middle East, and Africa. The company operates through Electrification, Motion, and Automation segments. Its Electrification segment offers renewable power solutions, modular substation packages, distribution automation products, switchboards and panelboards, switchgears, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions. The company's Motion segment designs, manufactures, and sells drives, motors, generators, and traction converters that are driving the low-carbon future for industries, cities, infrastructure, and transportation. The company's Automation segment offers industry-specific, integrated automation, electrification and digital solutions, as well as lifecycle services for the process, hybrid and marine industries. This segment also provides control technologies; process, machine and factory automation; industrial software; advanced analytics; sensing and measurement technology; and marine propulsion systems; services such as remote monitoring, preventive maintenance, asset performance management, emission monitoring and cybersecurity. It serves oil, gas, renewables, chemicals, mining, metals, cement, pulp and paper, pharmaceuticals, battery manufacturing, food and beverage, space, power generation, water, marine, and ports industries. The company was founded in 1883 and is headquartered in Zurich, Switzerland.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ABB Ltd reported revenue of $33.2B in FY2025 versus $28.9B in FY2021, a compound +3.5%/yr. Reported net income was $4.7B in FY2025, compounding +1.0%/yr from FY2021.

Growth Quality 79/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
CHF 33.2B
Latest YoY
+8.6%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.9%
Avg. revenue growth/yr (26Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+4.1% (2.9 + 1.2)
Revenue +3.5%/yr
FY21 $28.9B
FY22 $29.4B
FY23 $32.2B
FY24 $30.6B
FY25 $33.2B
Net income +1.0%/yr
FY21 $4.5B
FY22 $2.5B
FY23 $3.7B
FY24 $3.9B
FY25 $4.7B
Character of growth · EPS growth decomposed (2014-2025) +9.7 % p.a.
Revenue per share +0.7 %

of which total revenue −1.4 % · buybacks/dilution +2.1 %

EBIT margin +6.0 %
Tax rate +1.1 %
Residual (interest, one-offs) +1.7 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

ABBN screens 171% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "ABB Ltd Fair Value". https://www.fairvalue-calculator.com/stock/ABBN

Peer Group

Electrical Equipment & Parts · 542 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 74 · Top 25%
Fair Value upside −63% · Below median
Return on equity (TTM) 34% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 21% · Top 25%
Revenue growth 18% · Above median
Dividend yield (TTM) 1.2% · Above median
Debt / equity 0.49× · Higher than 75% of peers

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 36.0× · Pricier than median
P/B 11.68× · Pricier than 75% of peers
P/S (TTM) 5.43× · Pricier than 75% of peers
P/FCF 42.0× · Pricier than 75% of peers
EV/EBITDA 27.3× · Pricier than median
PEG 3.21× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE92 · sector 56
PAST100 · sector 26
HEALTH76 · sector 97
DIVIDEND24 · sector 23

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$652.50 HK$394.19 −40%
Delta Electronics (Thailand) Public Company TDED 10.40 SGD 1.47 SGD −86%
Vertiv Holdings VRT $257.08 $63.13 −75%
LG Energy Solution, Ltd 373220 365,500 KRW 201,455 KRW −45%
Prysmian S.p.A PRY €117.10 €84.15 −28%
Legrand SA LR €139.65 €78.82 −44%
Sungrow Power Supply Co 300274 ¥86.40 ¥123.83 +43%
Hubbell Incorporated HUBB $443.31 $285.77 −36%
Shenzhen Inovance Technology Co 300124 ¥61.07 ¥33.04 −46%
nVent Electric plc NVT $151.98 $40.68 −73%

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Frequently asked questions

Is ABB Ltd (ABBN) overvalued or undervalued?
As of Aug 31, 2026, our model estimates a fair value of CHF 28.70 versus a price of CHF 77.76, about −63% upside (overvalued).
What is the fair value of ABBN?
Our model-based fair value for ABB Ltd is CHF 28.70 (as of Aug 31, 2026), built from audited fundamentals. The current price: CHF 77.76.
What is the quality score of ABBN?
ABB Ltd has a Quality Score of 74/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of ABB Ltd (ABBN)?
ABB Ltd reported trailing-twelve-month revenue of about CHF 34.6B (latest available figure, as of Aug 31, 2026).
What is the net profit margin of ABBN?
The net profit margin of ABB Ltd is about 14.3%, meaning it keeps roughly 14.3% of revenue as net income. Based on the latest reported figures.
Does ABB Ltd pay a dividend?
ABB Ltd currently shows a dividend yield of about 1.21% relative to its recent price (as of Aug 31, 2026).
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