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AbbVie Inc (ABBV) Fair Value & Analysis

Healthcare · US · Market cap $449B · ISIN US00287Y1091

What is AbbVie Inc really worth?

AI AbbVie Inc logo AbbVie Inc ABBV · US
Price$260.21
Fair Value$67.72
Upside−74.0%
Quality74/100

A solid business, but trading 284% above our fair value of $67.72.

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Strengths

Negative equity (buybacks among others) · generates free cash flow
Wide moat 78/100

Risks

!Mixed Growth (revenue 5y +6.0 %/yr)
!Thin margins · 5.8% net margin
!Mixed vs. peers (8/14)

For context

·2.59% dividend yield
Evidence: High Range $39.47 – $98.87

Fair value as of: Aug 29, 2026

From 23 valuation models · updated 6 days ago

Share price +6.7% 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 ($98.87). The favourable scenario is already priced in.
  • A fairly wide model range ($39.47 to $98.87) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$265.97 $88.56 Fair Value $67.72 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.

How to read this chart

60‑month range $88.56 – $265.97 · fair‑value band $39.47 – $98.87 · the $260.21 price screens above the $67.72 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 29, 2026.

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Analysis

AbbVie Inc (ABBV) currently trades at $260.21, while our model-based Fair Value estimate is $67.72, implying the stock looks roughly 284.2% overvalued today. The Quality Score stands at 74/100 (solid quality), in the Healthcare sector. Bull case: the Dividend Discount group reads highest at a median of $113.50 per share, and 0 of the 23 models we run sit above the $260.21 price. Bear case: the Earnings-Based group reads lowest at $22.05, and 23 of the 23 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, AbbVie Inc generated revenue of $62.8B at a net margin of 5.8%. Revenue grew 12.4% year over year. It earns a return on equity of 62.3%. Net debt stands at $63.8B. Fundamentals as of Aug 29, 2026

Our scenario range runs from $39.47 (bear case) to $98.87 (bull case); at $260.21, 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 last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades near its 52-week high and 48% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −11% fair-value upside, at −74%, ABBV screens richer than that median.

Fair Value models

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 $98.39 $191.36 $350.26 77
Growth DCF $99.49 $190.65 $347.76 75
EPV $69.93 $87.64 $103.38 74
All 23 models by family
DCF Models
FCF DCF best evidence $98.39 $191.36 $350.26 77
Owner Earnings $50.21 $108.40 $207.86 72
5Y Revenue Exit $58.94 $111.66 $179.89 70
5Y EBITDA Exit $114.38 $220.62 $349.42 73
5Y P/E Exit $35.24 $65.08 $96.55 69
10Y Revenue Exit $68.67 $122.34 $197.55 65
10Y EBITDA Exit $108.00 $201.86 $336.25 66
10Y P/E Exit $55.37 $88.35 $129.37 63
Earnings-Based
Graham-Dodd $16.26 $63.01 $85.44 64
Lynch FV $15.44 $22.05 $28.67 61
PEG = 1.0 $15.44 $22.05 $28.67 57
EPV $69.93 $87.64 $103.38 74
Dividend Discount
Gordon GGM $63.46 $138.55 $233.12 65
DDM Multi-Stage $63.46 $113.50 $144.40 66
Multiples
P/E Multiple $39.47 $52.62 $65.78 63
P/S Multiple $30.50 $40.66 $50.83 58
EV/EBIT $114.59 $162.91 $211.24 65
EV/EBITDA $137.37 $193.29 $249.22 67
EV/Revenue $42.29 $73.45 $104.60 52
Growth DCF
Growth DCF $99.49 $190.65 $347.76 75
Rev-Margin DCF $58.94 $111.80 $176.66 71
Economic Profit
ROIC Compounder $79.35 $111.24 $149.42 71
Growth Earnings
Growth-Adj P/E $28.57 $40.81 $53.05 67

Widest divergence: Dividend Discount ($113.50) versus Earnings-Based ($22.05). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 118.9 as of Jul 17, 2026
P/S ratio 8.21 P/E × margin
EPS (TTM) $2.04 price ÷ EPS = P/E 118.9
Dividend yield 2.6%
Net margin 6.9% FY2025
Return on equity 62.3% TTM
More key figures
Profitability
Return on assets (EBIT) 11.3% avg 5y
Operating margin 32.2% TTM
Growth
Revenue (TTM) $62.8B TTM
Revenue growth (YoY) +12.4% 3y avg +1.8%
EPS growth (YoY) −46.2%
Balance sheet & cash flow
Free cash flow $17.8B FY2025
Net debt $63.8B FY2025 · ≈ 3.6 yrs of FCF

Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 74/100

Of which business quality 68 · Market factors (momentum, volatility) 74

Profitability 39
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 99
Earnings quality: real cash, not paper profit
Fin. Strength 47
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 81
Distance to the 52-week high (market factor)
Net Issuance 82
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

AbbVie Inc., a research-based biopharmaceutical company, engages in the research and development, manufacturing, commercializing, and sale of medicines and therapies worldwide.

Full company description

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.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

AbbVie Inc reported revenue of $61.2B in FY2025 versus $56.2B in FY2021, a compound +2.1%/yr. Reported net income was $4.2B in FY2025, compounding −22.2%/yr from FY2021.

Growth Quality 76/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$61.2B
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.
+1.8%
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.
+6.0%
Avg. revenue growth/yr (16Y) 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.
+9.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
−6.5% (−9.1 + 2.6)
Revenue +2.1%/yr
FY21 $56.2B
FY22 $58.1B
FY23 $54.3B
FY24 $56.3B
FY25 $61.2B
Net income −22.2%/yr
FY21 $11.5B
FY22 $11.8B
FY23 $4.9B
FY24 $4.3B
FY25 $4.2B
Character of growth · EPS growth decomposed (2014-2025) −0.5 % p.a.
Revenue per share +9.7 %

of which total revenue +10.8 % · buybacks/dilution −1.0 %

EBIT margin −2.1 %
Tax rate +0.7 %
Residual (interest, one-offs) −8.0 %

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).

ABBV screens 284% overvalued. Compare with Eli Lilly and Company →

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Cite: Fair Value Calculator (2026). "AbbVie Inc Fair Value". https://www.fairvalue-calculator.com/stock/ABBV

Peer Group

Drug Manufacturers - General · 75 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 −74% · Bottom 25%
Return on equity (TTM) 62% · Top 25%
Return on assets 10% · Top 25%
Net margin (TTM) 6% · Below median
Operating margin (TTM) 32% · Top 25%
Revenue growth 12% · Above median
Dividend yield (TTM) 2.6% · Above median

Valuation Multiples vs Drug Manufacturers - General median · lower = cheaper

P/E (TTM) 118.9× · Pricier than 75% of peers
P/S (TTM) 7.16× · Pricier than 75% of peers
P/FCF 25.2× · Pricier than 75% of peers
EV/EBITDA 16.8× · Pricier than median
PEG 0.40× · Cheaper 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
FUTURE62 · sector 29
PAST100 · sector 49
HEALTH100 · sector 94
DIVIDEND52 · sector 42

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

Insider activity: 44/100

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 Drug Manufacturers - General stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).

Stock Price Fair Value vs Fair Value
Eli Lilly and Company LLY $1,176 $389.47 −67%
Johnson & Johnson, JNJ $265.77 $169.04 −36%
Roche Holding RO CHF 374.60 CHF 306.54 −18%
Merck & Co MRK €131.98 €101.38 −23%
Novartis AG NOVN CHF 123.74 CHF 114.90 −7%
Novo Nordisk A/S NOVOB kr 295.50 kr 409.46 +39%
Amgen Inc AMGN $436.99 $252.02 −42%
Gilead Sciences, Inc GILD $148.86 $146.50 −2%
Pfizer Inc PFE $28.02 $24.87 −11%
Bristol-Myers Squibb Company BMY $66.58 $75.98 +14%

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Frequently asked questions

Is AbbVie Inc (ABBV) overvalued or undervalued?
As of Aug 29, 2026, our model estimates a fair value of $67.72 versus a price of $260.21, about −74% upside (overvalued).
What is the fair value of ABBV?
Our model-based fair value for AbbVie Inc is $67.72 (as of Aug 29, 2026), built from audited fundamentals. The current price: $260.21.
What is the quality score of ABBV?
AbbVie Inc 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 AbbVie Inc (ABBV)?
AbbVie Inc reported trailing-twelve-month revenue of about $62.8B (latest available figure, as of Aug 29, 2026).
What is the net profit margin of ABBV?
The net profit margin of AbbVie Inc is about 5.8%, meaning it keeps roughly 5.8% of revenue as net income. Based on the latest reported figures.
Does AbbVie Inc pay a dividend?
AbbVie Inc currently shows a dividend yield of about 2.59% relative to its recent price (as of Aug 29, 2026).
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