Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

$24.99

Price to Operating Profit (P/OP)
since 2012

Microsoft Excel

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Calculation

AbbVie Inc., P/OP, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of AbbVie Inc. Annual Report.


Share Price Trend
The share price exhibits a general upward trend over the observed period, rising from $38.50 in March 2013 to $192.87 in February 2025. Notably, there are fluctuations within this period; a significant increase is seen between February 2017 and February 2018, where the price nearly doubled from $61.77 to $118.60. Following this peak, the share price experienced a decline, reaching $79.41 in February 2019, before recovering steadily to higher levels, culminating in the highest observed price of $192.87 in February 2025.
Operating Profit per Share (OP) Behavior
The operating profit per share shows variability throughout the period. It starts at $3.69 in March 2013, declines to a low of $2.14 in February 2015, but then rises sharply to a peak of $10.24 by February 2023. After this peak, a decreasing trend is observed, with OP falling to $7.22 in February 2024 and further declining to $5.18 in February 2025. This pattern indicates periods of both growth and contraction in operating profitability on a per-share basis.
Price to Operating Profit (P/OP) Ratio Analysis
The P/OP ratio, reflecting the share price relative to operating profit per share, shows significant volatility. Early in the period, the ratio ranges from 10.44 to 28.64, with the highest ratio occurring in February 2015, coinciding with a low OP value, indicating relatively high share price valuation against earnings. The ratio stabilizes somewhat in the following years, fluctuating around the mid-teens, before rising markedly again to 37.26 by February 2025. This last increase suggests that the share price growth is outpacing earnings growth, potentially indicating increased market expectations or reduced earnings relative to share price.
Overall Financial Implications
The data indicates a general increase in market valuation as reflected in share price appreciation, accompanied by fluctuations in operating profitability. The rising P/OP ratio in recent years may warrant closer monitoring as it suggests a divergence between market price and earnings performance, which could impact investor perception and valuation metrics in the future. The variability in operating profit per share highlights operational challenges and opportunities that have affected earnings consistently over the years.

Comparison to Competitors

AbbVie Inc., P/OP, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).