Price to FCFE (P/FCFE)
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AbbVie Inc. pages available for free this week:
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2012
- Total Asset Turnover since 2012
- Price to Book Value (P/BV) since 2012
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Free Cash Flow to Equity (FCFE)
AbbVie Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
Analysis of the presented financial information reveals fluctuating performance in cash flows from operating activities and free cash flow to equity. Cash flows from operating activities initially increased before declining, while free cash flow to equity demonstrates a more pronounced pattern of variation.
- Cash Flows from Operating Activities
- Cash flows from operating activities increased from US$22,777 million in 2021 to US$24,943 million in 2022, representing a growth of approximately 9.5%. However, a subsequent decrease was observed in 2023, with cash flows falling to US$22,839 million. This downward trend continued into 2024, with a more substantial decline to US$18,806 million, before a slight recovery to US$19,030 million in 2025. The 2024 value represents the lowest level observed within the analyzed period.
- Free Cash Flow to Equity (FCFE)
- Free cash flow to equity exhibited significant volatility. It decreased from US$13,576 million in 2021 to US$11,815 million in 2022, a decline of approximately 12.8%. A substantial increase occurred in 2023, with FCFE rising to US$17,875 million. This was followed by a considerable surge in 2024, reaching US$25,083 million, the highest value in the period. However, FCFE then decreased in 2025 to US$17,489 million, although remaining above the levels seen in 2021 and 2022.
- Relationship between Operating Cash Flow and FCFE
- While both metrics experienced fluctuations, the trend in FCFE does not directly mirror that of cash flows from operating activities. The substantial increase in FCFE in 2023 and 2024 occurred despite a decline in operating cash flows, suggesting that factors beyond core operating performance, such as changes in financing activities or non-cash items, significantly influenced FCFE during those years. The decrease in FCFE in 2025, despite a slight increase in operating cash flow, further supports this observation.
The observed patterns suggest a complex interplay of factors impacting the company’s cash generation and distribution to equity holders. Further investigation into the underlying drivers of these fluctuations would be necessary to fully understand the company’s financial health and future prospects.
Price to FCFE Ratio, Current
AbbVie Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Amgen Inc. | |
| Bristol-Myers Squibb Co. | |
| Danaher Corp. | |
| Eli Lilly & Co. | |
| Gilead Sciences Inc. | |
| Johnson & Johnson | |
| Merck & Co. Inc. | |
| Pfizer Inc. | |
| Regeneron Pharmaceuticals Inc. | |
| Thermo Fisher Scientific Inc. | |
| Vertex Pharmaceuticals Inc. | |
| P/FCFE, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | |
| P/FCFE, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
AbbVie Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/FCFE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/FCFE, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of AbbVie Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The price to free cash flow to equity (P/FCFE) ratio exhibits fluctuations over the observed period. Initial values indicate a relatively high valuation, followed by a period of decline, and a subsequent increase towards the end of the period.
- Share Price
- The share price demonstrates a consistent upward trend throughout the period, increasing from US$144.03 in 2021 to US$224.81 in 2025. The rate of increase appears to accelerate between 2023 and 2025.
- FCFE per Share
- Free cash flow to equity per share experiences volatility. It decreases from US$7.68 in 2021 to US$6.68 in 2022, then increases significantly to US$10.12 in 2023 and further to US$14.21 in 2024. A decrease is then observed in 2025, with FCFE per share falling to US$9.89.
- P/FCFE Ratio
- The P/FCFE ratio begins at 18.76 in 2021, rises to 22.66 in 2022, and then declines to 17.37 in 2023 and 13.57 in 2024. The ratio then increases substantially to 22.73 in 2025. The movement of the ratio is influenced by the combined trends of the share price and FCFE per share. The decrease in the ratio from 2022 to 2024 suggests that the share price growth was outpaced by the growth in FCFE per share during that time. The increase in 2025 is driven by a higher share price and a lower FCFE per share.
The interplay between share price and FCFE per share results in a dynamic P/FCFE ratio. While the share price consistently increased, the FCFE per share experienced more pronounced fluctuations, leading to corresponding changes in the valuation ratio. The final year shows a return to a higher P/FCFE ratio, potentially indicating increased investor optimism or a shift in market perception.