Stock Analysis on Net

Abbott Laboratories (NYSE:ABT)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Abbott Laboratories, FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net earnings 7,071  4,495  3,687  2,368  477 
Net noncash charges 4,233  4,298  3,780  4,080  3,178 
(Increase) decrease in operating capital (771) (892) (1,331) (148) 1,915 
Net cash from operating activities 10,533  7,901  6,136  6,300  5,570 
Acquisitions of property and equipment (1,885) (2,177) (1,638) (1,394) (1,135)
Proceeds from issuance (repayments) of short-term debt, net and other (204) —  (26) (1,034)
Proceeds from issuance of long-term debt and debt with maturities over 3 months 1,281  1,842  4,009  6,742 
Repayments of long-term debt and debt with maturities over 3 months (48) (1,333) (3,441) (12,433) (8,650)
Free cash flow to equity (FCFE) 8,400  5,674  2,899  (3,544) 1,493 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Abbott Laboratories equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Abbott Laboratories FCFE increased from 2019 to 2020 and from 2020 to 2021.

Price to FCFE Ratio, Current

Abbott Laboratories, current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 1,750,942,289
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 8,400 
FCFE per share 4.80
Current share price (P) 109.71
Valuation Ratio
P/FCFE 22.87
Benchmarks
P/FCFE, Competitors1
Anthem Inc. 11.90
Bristol-Myers Squibb Co. 18.09
CVS Health Corp. 19.95
Danaher Corp. 19.81
HCA Healthcare Inc. 7.27
Intuitive Surgical Inc. 45.40
Medtronic PLC 32.27
Stryker Corp. 55.79
UnitedHealth Group Inc. 20.52
P/FCFE, Sector
Health Care Equipment & Services 19.75
P/FCFE, Industry
Health Care 17.87

Based on: 10-K (reporting date: 2021-12-31).

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

Abbott Laboratories, historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 1,763,482,267 1,771,529,358 1,763,433,243 1,756,470,269 1,746,333,892
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 8,400  5,674  2,899  (3,544) 1,493 
FCFE per share3 4.76 3.20 1.64 -2.02 0.85
Share price1, 4 116.79 123.04 87.45 76.13 60.17
Valuation Ratio
P/FCFE5 24.52 38.42 53.19 70.38
Benchmarks
P/FCFE, Competitors6
Anthem Inc. 11.07 7.75 13.72 52.47 8.42
Bristol-Myers Squibb Co. 16.17 7.80 5.80 18.62 20.01
CVS Health Corp. 21.23 11.93 18.52 1.66 12.89
Danaher Corp. 20.75 44.62 6.88 26.93 300.48
HCA Healthcare Inc. 8.62 19.17 12.73 17.25 9.06
Intuitive Surgical Inc. 58.86 81.15 57.31 60.90 49.12
Medtronic PLC 38.91 23.06 26.62 15.45
Stryker Corp. 59.94 24.42 28.84 14.99 44.01
UnitedHealth Group Inc. 20.11 13.93 13.90 14.22 24.48
P/FCFE, Sector
Health Care Equipment & Services 20.56 17.07 13.59 13.74 20.90
P/FCFE, Industry
Health Care 17.40 17.80 13.77 16.77 16.22

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 8,400,000,000 ÷ 1,763,482,267 = 4.76

4 Closing price as at the filing date of Abbott Laboratories Annual Report.

5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 116.79 ÷ 4.76 = 24.52

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Abbott Laboratories P/FCFE ratio decreased from 2019 to 2020 and from 2020 to 2021.