AbbVie Inc. (NYSE:ABBV)

The analysis reveals several key trends across different valuation ratios over the observed periods. Each ratio exhibits distinct patterns, indicating changing market perceptions and valuation metrics.

Price to Earnings (P/E) Ratio

The P/E ratio showed a notable decline from 39.63 in March 2021 to a low of 19.16 by September 2022, suggesting increasing earnings or decreased price expectations during this time. Subsequently, there was a sharp upward trajectory starting late 2022, peaking dramatically at 159.78 by September 2025. This sharp increase indicates potentially lower earnings relative to price or elevated market valuation, possibly reflecting growth expectations or market overvaluation.

Price to Operating Profit (P/OP) Ratio

This ratio initially decreased from 17.23 in March 2021 to around 12.41 in September 2021 but then stabilized mostly between 14.12 and 16.55 through 2022 and 2023. Beginning in 2024, the ratio rose substantially, reaching 42.2 by September 2025. The rise suggests an increasing premium placed on operating profit or operating profits failing to keep pace with price increases.

Price to Sales (P/S) Ratio

The P/S ratio remained relatively stable between 3.73 and 4.76 during 2021 and 2022, indicating steady sales relative to price. From 2023 onwards, the ratio increased consistently, from about 4.6 to 6.4 in September 2025, signifying higher valuation multiples on sales, potentially due to expectations of stronger sales growth or valuation expansion beyond sales growth.

Price to Book Value (P/BV) Ratio

The P/BV ratio exhibited an upward trend from 14.91 in March 2021 to 16.76 in June 2022, followed by relative stability through late 2022. Beginning in 2023, the ratio escalated sharply, particularly from March 2024 onward, reaching an exceptionally high 229.63 by June 2025, with the last data points missing. This suggests a significant divergence between market valuation and book value, indicating high market optimism, intangible asset reappraisals, or a shrinking book value relative to price.

Overall, the data reflects a trend of increasing valuation multiples across all major indicators after a period of relative stability or decline through 2021 and early 2022. The pronounced increases in P/E, P/OP, P/S, and especially P/BV ratios in later periods suggest elevated investor expectations, potential growth prospects, or changes in underlying financials influencing these metrics.

Share Price

The share price demonstrated a generally positive trend over the observed periods, increasing from approximately $115.75 at the beginning of 2021 to a peak exceeding $215 by the first quarter of 2025. Notable increments occurred towards the end of 2023 and throughout 2024, with the price rising sharply from around $141 to over $200. Minor fluctuations were present, including a dip in mid-2022 and some volatility during 2023, but the overall direction remained upward, reflecting growing market confidence or favorable outlooks.

Earnings per Share (EPS)

EPS showed considerable variability and a declining trend over time. Starting at $2.92 in early 2021, it peaked at 7.58 in late 2021 but then exhibited a general downward trajectory into 2023 and beyond. By the first quarter of 2025, the EPS had reduced to approximately $1.35, indicating weakening profitability or higher costs impacting net earnings. The fluctuations between quarters suggest periods of volatility in earnings performance, with EPS declining most sharply after its peak in late 2021.

Price-to-Earnings Ratio (P/E)

The P/E ratio reflected substantial variation and a marked increasing trend in later periods. Initially, the ratio was relatively moderate, around the high 30s and 20s in early to mid-2021, dropping steadily through late 2021 and early 2022. From 2023 onward, the P/E ratio escalated significantly, reaching extremely high levels above 150 by early 2025. This sharp increase in the P/E, despite falling EPS, suggests growing market expectations and valuation multiples despite diminishing earnings, likely implying investor optimism or anticipation of future growth not yet realized in earnings.

Overall Analysis

The data portrays a scenario where the company's market valuation, as reflected in share price and P/E ratio, increased significantly over the period despite a clear decline in reported earnings per share. The rising share price coupled with decreasing EPS leads to a pronounced increase in the P/E ratio, signaling that investors may be pricing in future growth prospects or other qualitative factors rather than current earnings performance alone. The combination of declining earnings and soaring valuation ratios warrants close attention to the underlying drivers, including operational performance, market conditions, or strategic developments influencing investor sentiment.

Share Price Trends

The share price exhibited an overall upward trajectory from March 31, 2021, to September 30, 2025. Starting at $115.75, the price experienced fluctuations but generally increased, reaching $215.89 by September 30, 2025. Notable increases occurred towards the end of 2023 and through 2024, peaking particularly in September 2024 at $200.47 and December 2024 at $192.87, before a significant climb to above $210 in the latter part of 2025.

Operating Profit Per Share (OPPS) Trends

Operating profit per share showed variability and a mildly declining trend over the same period. It began at $6.72 in March 2021, rose to a peak of $10.49 in March 2022, and then generally trended downward with some short-term volatility. By September 2025, the value had decreased to $5.12, marking nearly a 50% drop from its peak in early 2022. The data reflect intermittent declines and partial recoveries but no sustained upward movement after mid-2022.

Price-to-Operating Profit (P/OP) Ratio Trends

The P/OP ratio demonstrated an increasing trend throughout the observed quarters. Starting at 17.23 in March 2021, it briefly dipped to a low of 12.41 in September 2021, then generally rose, reaching very elevated levels above 30 from early 2025 onward. The ratio peaked at 42.2 in September 2025, indicating a strong divergence between the share price growth and the declining operating profit per share. The rise in P/OP suggests increased market valuation relative to operating profitability, potentially reflecting high investor expectations or other valuation factors beyond the core operating profit.

Overall Insights

The analysis shows that while the share price of the company advanced significantly over the period, operating profitability per share has weakened. The expanding P/OP ratio underscores a growing disparity between market perceptions and actual operating performance. This divergence may warrant further investigation into non-operational factors influencing the market price or reassessment of the company’s growth prospects as perceived by investors. The downward trend in operating profit per share paired with rising share prices could reflect increased risk or overvaluation from a fundamental perspective.

Share Price Trends

The share price exhibited an overall upward trajectory from March 2021 to September 2025. Starting at $115.75, it experienced gradual increases with some fluctuations, reaching a notable peak of $175.75 in December 2023. Thereafter, the price continued to rise, ultimately reaching $215.89 by September 2025. Periodic declines, such as those observed in mid-2022 and early 2025, were relatively short-lived within the broader growth trend.

Sales per Share Trends

Sales per share showed relatively moderate growth over the observed period. Beginning at $28.42 in March 2021, sales per share increased steadily but at a slow pace, culminating at $33.75 by September 2025. Some quarters exhibited slight declines or plateaus, such as the declines from March to December 2023, indicating moderate variability but overall upward movement consistent with steady revenue generation improvements.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio demonstrated a consistent rising trend, moving from 4.07 in March 2021 to 6.40 in September 2025. This increase indicates that the market's valuation of sales per share has strengthened over time. Notably, the P/S ratio surged significantly towards the end of 2023 and into 2024, peaking at 6.38 in September 2024. This suggests heightened investor confidence or expectations for future growth that outpaced the relatively modest increases in actual sales per share.

Overall Insights

The data reflects strong market performance with the share price appreciating substantially more rapidly than sales per share, leading to a corresponding increase in valuation multiples as measured by the P/S ratio. This pattern may indicate market anticipation of future growth or improvements in profitability rather than current sales alone. The steady sales per share growth combined with rising market prices could suggest effective business strategies or competitive positioning driving investor optimism.

Share Price

The share price exhibited an overall upward trend from March 2021 through September 2025. Starting at $115.75 in March 2021, the price experienced fluctuations but generally increased, reaching $215.89 by September 2025. Notable peaks occurred at December 2023 ($175.75), September 2024 ($200.47), and September 2025 ($215.89). Periods of temporary decline, such as between December 2023 and March 2024, were followed by strong recoveries, indicating overall positive market sentiment or company performance.

Book Value per Share (BVPS)

Book value per share demonstrated a declining trend over the analyzed period. It began at $7.76 in March 2021, showing minor fluctuations in the early periods, but from December 2022 onward, it steadily declined and turned negative by June 2025 (-$0.1), reaching -$1.49 by September 2025. This decline suggests increasing liabilities, goodwill impairments, or other factors negatively affecting the company's net asset value on a per-share basis.

Price-to-Book Value Ratio (P/BV)

The price-to-book value ratio remained relatively stable, ranging between approximately 14.9 and 16.8, up to around December 2022. Subsequently, the ratio increased sharply, rising from 29.97 in December 2023 to an exceptionally high 229.63 in June 2025, indicating a significant divergence between market valuation and net asset value. This rising P/BV ratio is driven mainly by the sharp decline in book value per share, while the share price continued to increase. The absence of data for September 2025 limits analysis for that period but earlier trends imply an increasing valuation premium.

Overall Analysis

The data suggests that while the market maintains or grows confidence in the company as reflected by the rising share price, the underlying book value per share deteriorates substantially. This leads to an increasing disconnect between market price and book value, as evidenced by the surging P/BV ratio. Such patterns may imply that investors value intangible assets, future growth prospects, or earnings potential more than the current book value. However, the negative book value in later periods signals potential concerns regarding the company's asset base stability or accounting adjustments that might warrant further investigation.