Current Valuation Ratios

AbbVie Inc., current price multiples

 
AbbVie Inc. Abbott Laboratories Allergan PLC Amgen Inc. Biogen Inc. Bristol-Myers Squibb Co. Celgene Corp. Eli Lilly & Co. Gilead Sciences Inc. Johnson & Johnson Merck & Co. Inc. Pfizer Inc. Regeneron Pharmaceuticals Inc. Pharmaceuticals & Biotechnology Health Care
Selected Financial Data
Current share price (P) $ 106.23
No. shares of common stock outstanding 1,586,879,451
Growth rate (g) 19.64%
 
Earnings per share (EPS) $ 3.35
Next year expected EPS $ 4.00
Operating profit per share $ 6.04
Sales per share $ 17.78
Book value per share (BVPS) $ 3.21
Ratios (Price Multiples)
Price to earnings (P/E) 31.75 225.64 59.64 23.24 84.96 18.89 19.06 253.59 65.68 9.81 26.52 38.35 33.41
Price to next year expected earnings 26.54 216.95 55.54 18.20 90.42 14.25 12.94 297.59 67.76 9.25 22.36 35.05 30.40
Price-earnings-growth (PEG) 1.62 56.35 8.08 0.84 0.58 0.40 1.63 1.43 4.08 3.38
Price to operating profit (P/OP) 17.57 62.36 11.83 11.04 23.69 11.80 41.61 6.24 17.91 24.07 15.34 15.28 18.06 17.90
Price to sales (P/S) 5.97 3.93 3.30 5.42 4.81 4.12 4.28 3.90 3.44 4.31 3.92 3.98 5.41 4.28 2.89
Price to book value (P/BV) 33.07 3.48 0.71 4.68 4.68 7.29 8.02 7.70 4.31 5.48 4.58 2.93 5.17 4.19 4.02

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

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Historical Valuation Ratios (Summary)

AbbVie Inc., historical price multiples

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Price to earnings (P/E) 35.47 16.54 17.01 55.08 19.64
Price to operating profit (P/OP) 19.63 10.49 11.61 28.64 14.31
Price to sales (P/S) 6.67 3.84 3.83 4.90 4.31
Price to book value (P/BV) 36.95 21.24 22.17 56.09 18.05
Ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. AbbVie Inc.'s P/E ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. AbbVie Inc.'s P/OP ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. AbbVie Inc.'s P/S ratio increased from 2015 to 2016 and from 2016 to 2017.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. AbbVie Inc.'s P/BV ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

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Price to Earnings (P/E)

AbbVie Inc., historical P/E calculation, comparison to benchmarks

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 1,587,972,655 1,593,920,285 1,611,238,226 1,593,886,909 1,588,518,764
Selected Financial Data (USD $)
Net earnings (in millions) 5,309  5,953  5,144  1,774  4,128 
Earnings per share (EPS)3 3.34 3.73 3.19 1.11 2.60
Share price1, 2 118.60 61.77 54.29 61.30 51.04
Ratio
P/E ratio4 35.47 16.54 17.01 55.08 19.64
Benchmarks
P/E Ratio, Competitors
Abbott Laboratories 220.29 55.16 12.83 31.30 23.25
Allergan PLC 5.60 31.94
Amgen Inc. 64.06 16.03 15.95 22.96 18.69
Biogen Inc. 28.83 15.41 16.67 31.27 38.21
Bristol-Myers Squibb Co. 103.55 20.56 64.22 49.80 35.01
Celgene Corp. 24.35 44.99 48.59 49.41 46.13
Eli Lilly & Co. 32.39 33.35 33.06 13.88
Gilead Sciences Inc. 22.75 6.83 6.75 12.85 42.00
Johnson & Johnson 268.10 20.08 18.80 17.15 18.72
Merck & Co. Inc. 61.63 46.14 31.64 13.94 37.83
Pfizer Inc. 9.99 28.10 26.37 23.03 9.32
Regeneron Pharmaceuticals Inc. 28.99 42.64 60.50 118.44 77.00
P/E Ratio, Sector
Pharmaceuticals & Biotechnology 40.95 18.35 19.56 23.76 20.82
P/E Ratio, Industry
Health Care 34.72 19.29 20.31 23.84 20.65

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of AbbVie Inc.'s Annual Report.

2017 Calculations

3 EPS = Net earnings ÷ No. shares of common stock outstanding
= 5,309,000,000 ÷ 1,587,972,655 = 3.34

4 P/E ratio = Share price ÷ EPS
= 118.60 ÷ 3.34 = 35.47

Ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. AbbVie Inc.'s P/E ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

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Price to Operating Profit (P/OP)

AbbVie Inc., historical P/OP calculation, comparison to benchmarks

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 1,587,972,655 1,593,920,285 1,611,238,226 1,593,886,909 1,588,518,764
Selected Financial Data (USD $)
Operating earnings (in millions) 9,592  9,384  7,537  3,411  5,664 
Operating profit per share3 6.04 5.89 4.68 2.14 3.57
Share price1, 2 118.60 61.77 54.29 61.30 51.04
Ratio
P/OP ratio4 19.63 10.49 11.61 28.64 14.31
Benchmarks
P/OP Ratio, Competitors
Abbott Laboratories 60.88 24.25 19.80 27.50 22.79
Allergan PLC
Amgen Inc. 12.71 12.64 13.07 19.13 16.19
Biogen Inc. 13.70 11.08 12.09 23.10 28.29
Bristol-Myers Squibb Co. 28.87 19.79 53.18 38.52 28.98
Celgene Corp. 15.21 28.40 34.53 39.23 36.98
Eli Lilly & Co. 39.61 25.63 29.86 29.71 12.11
Gilead Sciences Inc. 7.45 5.23 5.50 10.19 28.54
Johnson & Johnson 18.94 16.09 16.50 13.36 14.09
Merck & Co. Inc. 22.58 33.62 20.29 29.30 27.97
Pfizer Inc. 15.62 16.88 15.52 15.88 13.50
Regeneron Pharmaceuticals Inc. 16.71 28.70 30.74 49.17 42.99
P/OP Ratio, Sector
Pharmaceuticals & Biotechnology 19.28 16.55 16.77 20.16 19.07
P/OP Ratio, Industry
Health Care 18.60 16.20 16.38 19.02 17.67

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of AbbVie Inc.'s Annual Report.

2017 Calculations

3 Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 9,592,000,000 ÷ 1,587,972,655 = 6.04

4 P/OP ratio = Share price ÷ Operating profit per share
= 118.60 ÷ 6.04 = 19.63

Ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. AbbVie Inc.'s P/OP ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

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Price to Sales (P/S)

AbbVie Inc., historical P/S calculation, comparison to benchmarks

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 1,587,972,655 1,593,920,285 1,611,238,226 1,593,886,909 1,588,518,764
Selected Financial Data (USD $)
Net revenues (in millions) 28,216  25,638  22,859  19,960  18,790 
Sales per share3 17.77 16.08 14.19 12.52 11.83
Share price1, 2 118.60 61.77 54.29 61.30 51.04
Ratio
P/S ratio4 6.67 3.84 3.83 4.90 4.31
Benchmarks
P/S Ratio, Competitors
Abbott Laboratories 3.84 3.70 2.78 3.53 2.74
Allergan PLC 3.40 5.65 7.81 5.79 4.52
Amgen Inc. 5.82 5.65 5.28 6.13 5.22
Biogen Inc. 5.96 4.98 5.49 9.46 10.26
Bristol-Myers Squibb Co. 5.02 4.72 6.07 6.28 5.48
Celgene Corp. 5.52 8.04 8.50 13.06 10.51
Eli Lilly & Co. 3.71 4.18 4.02 4.03 2.81
Gilead Sciences Inc. 4.10 3.08 3.80 6.36 11.95
Johnson & Johnson 4.56 4.62 4.13 3.77 3.63
Merck & Co. Inc. 3.68 4.54 3.56 3.93 3.78
Pfizer Inc. 4.05 3.84 3.76 4.24 3.97
Regeneron Pharmaceuticals Inc. 5.92 7.86 9.38 14.62 15.52
P/S Ratio, Sector
Pharmaceuticals & Biotechnology 4.57 4.50 4.43 4.97 4.53
P/S Ratio, Industry
Health Care 3.00 2.87 2.85 3.21 2.87

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of AbbVie Inc.'s Annual Report.

2017 Calculations

3 Sales per share = Net revenues ÷ No. shares of common stock outstanding
= 28,216,000,000 ÷ 1,587,972,655 = 17.77

4 P/S ratio = Share price ÷ Sales per share
= 118.60 ÷ 17.77 = 6.67

Ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. AbbVie Inc.'s P/S ratio increased from 2015 to 2016 and from 2016 to 2017.

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Price to Book Value (P/BV)

AbbVie Inc., historical P/BV calculation, comparison to benchmarks

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 1,587,972,655 1,593,920,285 1,611,238,226 1,593,886,909 1,588,518,764
Selected Financial Data (USD $)
Stockholders' equity (in millions) 5,097  4,636  3,945  1,742  4,492 
Book value per share (BVPS)3 3.21 2.91 2.45 1.09 2.83
Share price1, 2 118.60 61.77 54.29 61.30 51.04
Ratio
P/BV ratio4 36.95 21.24 22.17 56.09 18.05
Benchmarks
P/BV Ratio, Competitors
Abbott Laboratories 3.40 3.76 2.68 3.32 2.38
Allergan PLC 0.73 1.08 1.54 2.67 4.11
Amgen Inc. 5.02 4.14 3.94 4.59 4.30
Biogen Inc. 5.80 4.70 6.31 8.49 8.25
Bristol-Myers Squibb Co. 8.88 5.66 7.04 6.72 5.92
Celgene Corp. 10.34 13.63 13.15 15.14 11.97
Eli Lilly & Co. 7.33 6.33 5.51 5.14 3.69
Gilead Sciences Inc. 5.15 4.88 6.59 10.08 11.36
Johnson & Johnson 5.79 4.72 4.07 4.01 3.50
Merck & Co. Inc. 4.30 4.51 3.15 3.42 3.35
Pfizer Inc. 2.98 3.40 2.84 2.95 2.69
Regeneron Pharmaceuticals Inc. 5.66 8.58 10.53 16.22 16.74
P/BV Ratio, Sector
Pharmaceuticals & Biotechnology 4.48 4.16 3.89 4.77 4.23
P/BV Ratio, Industry
Health Care 4.18 3.86 3.55 4.39 3.86

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of AbbVie Inc.'s Annual Report.

2017 Calculations

3 BVPS = Stockholders' equity ÷ No. shares of common stock outstanding
= 5,097,000,000 ÷ 1,587,972,655 = 3.21

4 P/BV ratio = Share price ÷ BVPS
= 118.60 ÷ 3.21 = 36.95

Ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. AbbVie Inc.'s P/BV ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

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