Abbott Laboratories Valuation
| ABT Stock | USD 108.89 0.22 0.20% |
At this time, the firm appears to be fairly valued. Abbott Laboratories shows a prevailing Real Value of $111.19 per share. The current price of the firm is $108.89. Our model approximates the value of Abbott Laboratories from analyzing the firm fundamentals such as profit margin of 0.14 %, and Return On Equity of 0.15 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Abbott Laboratories' valuation include:
Price Book 4.9044 | Enterprise Value 197.8 B | Enterprise Value Ebitda 18.7476 | Price Sales 4.7203 | Forward PE 23.6407 |
Fairly Valued
Today
Please note that Abbott Laboratories' price fluctuation is very steady at this time. Calculation of the real value of Abbott Laboratories is based on 3 months time horizon. Increasing Abbott Laboratories' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Abbott Laboratories is useful when determining the fair value of the Abbott stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Abbott Laboratories. Since Abbott Laboratories is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Abbott Stock. However, Abbott Laboratories' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 108.89 | Real 111.19 | Target 110.65 | Hype 108.81 |
The real value of Abbott Stock, also known as its intrinsic value, is the underlying worth of Abbott Laboratories Company, which is reflected in its stock price. It is based on Abbott Laboratories' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Abbott Laboratories' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Abbott Laboratories' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Abbott Laboratories helps investors to forecast how Abbott stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Abbott Laboratories more accurately as focusing exclusively on Abbott Laboratories' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Abbott Laboratories' intrinsic value based on its ongoing forecasts of Abbott Laboratories' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Abbott Laboratories' closest peers. When choosing an evaluation method for Abbott Laboratories, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Abbott Laboratories Investments |
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Abbott Valuation Trend
Knowing Abbott Laboratories' actual value is paramount for traders to make sound investment determinations. Abbott Laboratories' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Abbott Laboratories' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Abbott Laboratories' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Abbott Market Cap
Abbott Laboratories is number one stock in market capitalization category among related companies. Market capitalization of Health Care industry is presently estimated at about 209.89 Billion. Abbott Laboratories totals roughly 188.94 Billion in market capitalization claiming about 90% of equities under Health Care industry.Abbott Laboratories Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Abbott Laboratories's current stock value. Our valuation model uses many indicators to compare Abbott Laboratories value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Abbott Laboratories competition to find correlations between indicators driving Abbott Laboratories's intrinsic value. More Info.Abbott Laboratories is rated third in price to earning category among related companies. It is rated second in price to book category among related companies fabricating about 0.20 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Abbott Laboratories is roughly 4.92 . Price To Book Ratio is likely to drop to 2.62 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Abbott Laboratories by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Abbott Laboratories' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Abbott Laboratories' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Abbott Laboratories' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Abbott Laboratories and how it compares across the competition.
About Abbott Laboratories Valuation
The stock valuation mechanism determines the current worth of Abbott Laboratories on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Abbott Laboratories. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Abbott Laboratories based exclusively on its fundamental and basic technical indicators. By analyzing Abbott Laboratories's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Abbott Laboratories's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Abbott Laboratories. We calculate exposure to Abbott Laboratories's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Abbott Laboratories's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 22.1 B | 12.5 B | |
| Pretax Profit Margin | 0.17 | 0.21 | |
| Operating Profit Margin | 0.16 | 0.21 | |
| Net Profit Margin | 0.14 | 0.15 | |
| Gross Profit Margin | 0.55 | 0.62 |
Abbott Laboratories Quarterly Retained Earnings |
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8 Steps to conduct Abbott Laboratories' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Abbott Laboratories' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Abbott Laboratories' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Abbott Laboratories' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Abbott Laboratories' revenue streams: Identify Abbott Laboratories' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Abbott Laboratories' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Abbott Laboratories' growth potential: Evaluate Abbott Laboratories' management, business model, and growth potential.
- Determine Abbott Laboratories' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Abbott Laboratories' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Abbott Laboratories represents a small ownership stake in the entity. As a stockholder of Abbott, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Abbott Laboratories Dividends Analysis For Valuation
Dividends Paid is likely to gain to about (3.4 B) in 2024. Dividend Yield is likely to drop to 0.02 in 2024. Retained Earnings is likely to gain to about 39.4 B in 2024, whereas Retained Earnings Total Equity is likely to drop slightly above 27.2 B in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -3.6 B | -3.4 B | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.62 | 0.49 | |
| Dividend Paid And Capex Coverage Ratio | 5.36 | 5.09 |
There are various types of dividends Abbott Laboratories can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Abbott shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Abbott Laboratories directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Abbott pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Abbott Laboratories by the value of the dividends paid out.
Abbott Laboratories Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Abbott Laboratories does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 1.7 B | |
| Quarterly Earnings Growth Y O Y | 0.55 | |
| Forward Price Earnings | 23.6407 |
Abbott Laboratories Current Valuation Indicators
Valuation refers to the process of determining the present value of Abbott Laboratories and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Abbott we look at many different elements of the entity such as Abbott's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Abbott Laboratories' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Abbott Laboratories' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Abbott Laboratories, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Abbott Laboratories' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Abbott Laboratories' worth.When determining whether Abbott Laboratories is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Abbott Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Abbott Laboratories Stock. Highlighted below are key reports to facilitate an investment decision about Abbott Laboratories Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Abbott Laboratories. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics. For more information on how to buy Abbott Stock please use our How to Invest in Abbott Laboratories guide.Note that the Abbott Laboratories information on this page should be used as a complementary analysis to other Abbott Laboratories' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Complementary Tools for Abbott Stock analysis
When running Abbott Laboratories' price analysis, check to measure Abbott Laboratories' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Abbott Laboratories is operating at the current time. Most of Abbott Laboratories' value examination focuses on studying past and present price action to predict the probability of Abbott Laboratories' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Abbott Laboratories' price. Additionally, you may evaluate how the addition of Abbott Laboratories to your portfolios can decrease your overall portfolio volatility.
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Is Abbott Laboratories' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Abbott Laboratories. If investors know Abbott will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Abbott Laboratories listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.55 | Dividend Share 2.08 | Earnings Share 3.26 | Revenue Per Share 23.051 | Quarterly Revenue Growth 0.015 |
The market value of Abbott Laboratories is measured differently than its book value, which is the value of Abbott that is recorded on the company's balance sheet. Investors also form their own opinion of Abbott Laboratories' value that differs from its market value or its book value, called intrinsic value, which is Abbott Laboratories' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Abbott Laboratories' market value can be influenced by many factors that don't directly affect Abbott Laboratories' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Abbott Laboratories' value and its price as these two are different measures arrived at by different means. Investors typically determine if Abbott Laboratories is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Abbott Laboratories' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.