Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2012
- Current Ratio since 2012
- Price to Earnings (P/E) since 2012
- Analysis of Revenues
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Current Valuation Ratios
AbbVie Inc., current price multiples
| AbbVie Inc. | 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. | Pharmaceuticals, Biotechnology & Life Sciences | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | |||||||||||||||||
| No. shares of common stock outstanding | |||||||||||||||||
| Growth rate (g) | |||||||||||||||||
| Earnings per share (EPS) | |||||||||||||||||
| Next year expected EPS | |||||||||||||||||
| Operating profit per share | |||||||||||||||||
| Sales per share | |||||||||||||||||
| Book value per share (BVPS) | |||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | |||||||||||||||||
| Price to next year expected earnings | |||||||||||||||||
| Price to operating profit (P/OP) | |||||||||||||||||
| Price to sales (P/S) | |||||||||||||||||
| Price to book value (P/BV) | |||||||||||||||||
Based on: 10-K (reporting date: 2024-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
AbbVie Inc., historical price multiples
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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).
- Price to Earnings (P/E) Ratio
- The P/E ratio showed a downward trend from 40.17 at the end of 2020 to 22.07 in 2021, stabilizing slightly at 22.62 in 2022. However, a marked increase occurred in 2023 and 2024, climbing sharply to 63.84 and further to 79.59 respectively. This indicates a shift from a relatively moderate valuation to a significantly higher earnings multiple in the more recent periods.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio declined from 16.32 in 2020 to 14.21 in 2021, with a slight rise to 14.78 in 2022. From 2023 onwards, the ratio increased substantially, reaching 24.34 in 2023 and then escalating to 37.26 in 2024. This pattern suggests growing market expectations relative to operating profits over the last two years.
- Price to Sales (P/S) Ratio
- The P/S ratio displayed a consistent upward trend throughout the period. Beginning at 4.05 in 2020, it increased steadily to 4.53 in 2021, 4.61 in 2022, then experienced a sharper rise to 5.72 in 2023, and 6.04 in 2024. This steady increase reflects a rising valuation relative to sales across all observed years.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio showed initial volatility with values of 14.18 in 2020, rising to 16.53 in 2021, then slightly declining to 15.52 in 2022. A pronounced surge occurred in 2023 when the ratio nearly doubled to 29.97, followed by a steep escalation to 102.4 in 2024. This exceptional increase indicates a significant premium placed on book value in the most recent years, possibly reflecting changes in market perception or underlying asset revaluations.
Price to Earnings (P/E)
AbbVie Inc., historical P/E 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 | ||||||
| Selected Financial Data (US$) | ||||||
| Net earnings attributable to AbbVie Inc. (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| 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/E Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/E Ratio, Industry | ||||||
| Health Care | ||||||
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.
2 2024 Calculation
EPS = Net earnings attributable to AbbVie Inc. ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of AbbVie Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrates a consistent upward trend over the five-year period, increasing from $105.01 at the end of 2020 to $192.87 at the end of 2024. This progression indicates growing market confidence or enhanced valuation of the company’s equity.
- Earnings per Share (EPS)
- The EPS shows variability during the analyzed period. It rose significantly from $2.61 in 2020 to a peak of $6.69 in 2022, followed by a sharp decline to $2.75 in 2023 and a further decrease to $2.42 in 2024. This pattern suggests fluctuations in profitability, with a notable downturn in the last two years.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio declined from 40.17 in 2020 to 22.07 in 2021 and remained relatively stable through 2022 at 22.62, reflecting a lower valuation relative to earnings during this period. However, it then surged substantially to 63.84 in 2023 and further to 79.59 in 2024, despite the decline in EPS. This sharp increase implies that the market price has been rising much faster than earnings, possibly indicating high investor expectations or perceived growth potential contrary to the earnings trend.
Price to Operating Profit (P/OP)
AbbVie Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating earnings (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| 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/OP Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/OP Ratio, Industry | ||||||
| Health Care | ||||||
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.
2 2024 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of AbbVie Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated a consistent upward trend over the five-year period. It increased from $105.01 at the end of 2020 to $192.87 by the end of 2024, showing a strong appreciation in market value. Notably, the increase was relatively steady each year, with the largest absolute increase observed between 2022 and 2024.
- Operating Profit Per Share
- Operating profit per share exhibited variability over the same period. It rose sharply from $6.43 in 2020 to a peak of $10.24 in 2022, indicating improved profitability in the early years. However, after 2022, there was a significant decline, dropping to $7.22 in 2023 and further to $5.18 in 2024. This suggests challenges in maintaining operating profit margins or increased operational costs in the later years.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio initially decreased from 16.32 in 2020 to a low of 14.21 in 2021, reflecting a period where the share price growth was more aligned with improvements in operating profit per share. Afterward, the ratio increased sharply, reaching 37.26 in 2024. This substantial increase indicates that the share price grew at a much faster rate than operating profit per share in the later years, possibly reflecting heightened investor expectations or market speculation despite diminishing operating profit.
- Overall Analysis
- Overall, the data reveals that while the share price consistently increased, underlying operating profitability per share peaked mid-period and then declined. The rising P/OP ratio in the last two years points to a disconnect between market valuation and operational performance, suggesting investors might be optimistic about future growth or other factors beyond current operating profit. This divergence warrants attention as it could imply increased risk or overvaluation relative to operational results.
Price to Sales (P/S)
AbbVie Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net revenues (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| 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/S Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/S Ratio, Industry | ||||||
| Health Care | ||||||
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.
2 2024 Calculation
Sales per share = Net revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of AbbVie Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a consistent upward trajectory over the five-year period, increasing from $105.01 at the end of 2020 to $192.87 at the end of 2024. This represents a significant appreciation, indicating positive market sentiment or improved company valuation over time.
- Sales Per Share Trend
- Sales per share showed growth from $25.94 in 2020 to a peak of $32.81 in 2022, followed by a slight decline to $30.75 in 2023. In 2024, sales per share modestly recovered to $31.91. Overall, the trend suggests relatively stable sales with minor fluctuations post-2022.
- Price-to-Sales Ratio (P/S) Trend
- The P/S ratio steadily increased throughout the period, starting at 4.05 in 2020 and reaching 6.04 by 2024. This trend indicates that the share price has grown at a faster pace relative to sales per share, implying a rising market valuation relative to the company's sales performance.
- Summary of Insights
- The data reveal strong investor confidence reflected in rising share prices and elevated P/S multiples. While sales per share grew initially and then slightly declined, the share price continued to rise, leading to higher valuation multiples and suggesting expectations of future growth or profitability beyond immediate sales figures.
Price to Book Value (P/BV)
AbbVie Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| 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/BV Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/BV Ratio, Industry | ||||||
| Health Care | ||||||
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.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of AbbVie Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibits a consistent upward trend over the five-year period. Beginning at $105.01 at the end of 2020, it increased steadily each year, reaching $192.87 by the end of 2024. This represents an approximate 83.6% increase in share price across the timeframe, indicating growing market valuation and investor confidence.
- Book Value Per Share (BVPS) Trend
- In contrast to the share price, the book value per share follows a non-linear declining trend. Starting at $7.4 in 2020, BVPS gradually increased to $9.75 by the end of 2022 but then experienced a significant decline to $5.86 in 2023 and a further steep drop to $1.88 in 2024. This sharp decrease in book value per share suggests deterioration in the company's net asset base or increased liabilities, possibly due to write-downs, increased debt, or other balance sheet adjustments.
- Price-to-Book Value (P/BV) Ratio Trend
- The P/BV ratio reveals a notable divergence between market valuation and underlying book value. Starting at 14.18 in 2020, the ratio increased moderately to 16.53 in 2021, then slightly decreased to 15.52 in 2022. However, in 2023 the ratio surged dramatically to 29.97 and saw an exceptional rise to 102.4 in 2024. This sharp increase is largely attributable to the decline in book value per share combined with rising share prices, indicating that the market price increasingly exceeds the company’s book value. This elevated P/BV ratio might reflect strong investor optimism or future growth expectations despite the shrinking book value.
- Overall Insights
- The simultaneous increase in share price and the drastic decline in book value per share suggest that market participants are valuing the company based on factors beyond its current net asset value. The rapidly rising P/BV ratio highlights a growing gap between market and book valuations, which could imply perceived intangible asset strength, anticipated earnings growth, or other qualitative factors driving investor sentiment. However, the declining book value per share warrants careful attention as it may signal underlying financial pressures or changes in the company’s asset base that should be further investigated.