Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
AbbVie Inc., FCFE calculation
US$ in millions
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).
- Cash Flows from Operating Activities
- There is an initial increase in operating cash flows from 17,588 million USD in 2020 to a peak of 24,943 million USD in 2022. However, following this peak, the figure declines, reaching 18,806 million USD by the end of 2024. This pattern indicates strong operating cash generation during the early part of the period, but a notable reduction in the last two years of the dataset.
- Free Cash Flow to Equity (FCFE)
- Free cash flow to equity shows a divergent trend compared to operating cash flows. Starting at 14,087 million USD in 2020, FCFE decreases slightly to 11,815 million USD by 2022, indicating some constraints or increased capital expenditures during this period. Nonetheless, from 2022 onwards, FCFE rises sharply, reaching 25,083 million USD by the end of 2024. This significant increase suggests improved cash availability to equity holders, potentially driven by changes in financing, working capital, or investment activities.
- Overall Insights
- The data reflects contrasting trends where operating cash generation peaks and then declines toward the end of the period, while free cash flow to equity initially dips but recovers substantially with a strong upward trajectory in the final two years. This divergence may imply strategic financial management focused on maximizing shareholder returns despite variability in core operating cash inflows.
Price to FCFE Ratio, Current
AbbVie Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,766,558,253 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 25,083) |
| FCFE per share | 14.20 |
| Current share price (P) | 206.57 |
| Valuation Ratio | |
| P/FCFE | 14.55 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Amgen Inc. | 25.68 |
| Bristol-Myers Squibb Co. | 4.08 |
| Danaher Corp. | 41.12 |
| Eli Lilly & Co. | 52.18 |
| Gilead Sciences Inc. | 12.41 |
| Johnson & Johnson | 14.20 |
| Merck & Co. Inc. | 10.31 |
| Pfizer Inc. | 53.26 |
| Regeneron Pharmaceuticals Inc. | 16.51 |
| Thermo Fisher Scientific Inc. | 37.41 |
| Vertex Pharmaceuticals Inc. | — |
| P/FCFE, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 18.73 |
| P/FCFE, Industry | |
| Health Care | 17.52 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
AbbVie Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,765,354,859 | 1,766,473,359 | 1,769,399,971 | 1,768,753,829 | 1,765,881,690 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 25,083) | 17,875) | 11,815) | 13,576) | 14,087) | |
| FCFE per share3 | 14.21 | 10.12 | 6.68 | 7.68 | 7.98 | |
| Share price1, 4 | 192.87 | 175.75 | 151.31 | 144.03 | 105.01 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 13.57 | 17.37 | 22.66 | 18.76 | 13.16 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Amgen Inc. | 25.50 | 4.71 | 8.32 | 13.52 | 11.06 | |
| Bristol-Myers Squibb Co. | 4.74 | 7.52 | 22.85 | 16.17 | 7.80 | |
| Danaher Corp. | 40.83 | 53.08 | 32.04 | 20.75 | 44.62 | |
| Eli Lilly & Co. | 64.93 | 75.06 | 60.51 | 35.17 | 36.62 | |
| Gilead Sciences Inc. | 12.07 | 12.81 | 15.22 | 12.70 | 5.98 | |
| Johnson & Johnson | 12.67 | 24.31 | 16.73 | 23.28 | 15.60 | |
| Merck & Co. Inc. | 11.32 | 24.48 | 22.40 | 18.72 | 17.85 | |
| Pfizer Inc. | 55.28 | 3.82 | 10.56 | 8.88 | — | |
| Regeneron Pharmaceuticals Inc. | 21.27 | 26.52 | 19.29 | 10.35 | 13.30 | |
| Thermo Fisher Scientific Inc. | 41.23 | 31.16 | 27.98 | 13.44 | 18.58 | |
| Vertex Pharmaceuticals Inc. | — | 33.45 | 19.91 | 26.08 | 18.46 | |
| P/FCFE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 19.99 | 16.91 | 19.28 | 16.49 | 17.09 | |
| P/FCFE, Industry | ||||||
| Health Care | 19.35 | 18.18 | 18.40 | 17.94 | 17.51 | |
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).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 25,083,000,000 ÷ 1,765,354,859 = 14.21
4 Closing price as at the filing date of AbbVie Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 192.87 ÷ 14.21 = 13.57
6 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a steady upward trend over the five-year period, rising from $105.01 at the end of 2020 to $192.87 by the end of 2024. This reflects a significant appreciation of approximately 83.7% over the five years, indicating strong market confidence or growth expectations.
- Free Cash Flow to Equity (FCFE) Per Share
- FCFE per share showed some fluctuations during the period. It slightly declined from $7.98 in 2020 to $6.68 in 2022, suggesting potential short-term challenges impacting cash flow. However, in subsequent years, FCFE per share increased substantially to $14.21 by the end of 2024, more than doubling the 2022 figure. This recovery suggests improved operational efficiency, increased profitability, or better cash flow management in recent years.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio increased from 13.16 in 2020 to a peak of 22.66 in 2022, indicating that the share price grew much faster than free cash flow per share in that period. This could suggest heightened market optimism, expectations of future growth, or overvaluation at that time. Following 2022, the ratio declined to 13.57 in 2024, closer to 2020 levels. This decline is consistent with the substantial rise in FCFE per share during the last two years, which outpaced share price growth, reflecting a potentially more balanced valuation relative to cash flow.
- Overall Insights
- The data reveals that while the market initially priced the stock at a premium relative to its cash flow generation (especially in 2021 and 2022), recent years have shown a strong improvement in the company's ability to generate free cash flow for equity holders. The convergence of the P/FCFE ratio toward historical lower levels, alongside rising FCFE and share prices, suggests a maturing phase of growth with improved fundamental performance underpinning share price appreciation.