Microsoft Excel LibreOffice Calc

Abbott Laboratories (ABT)


Common Stock Valuation Ratios (Price Multiples)

Difficulty: Beginner


Current Valuation Ratios

Abbott Laboratories, current price multiples

Microsoft Excel LibreOffice Calc
Abbott Laboratories AbbVie Inc. 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) $ 75.97
No. shares of common stock outstanding 1,764,181,262
Growth rate (g) 2.64%
 
Earnings per share (EPS) $ 1.34
Next year expected EPS $ 1.38
Operating profit per share $ 2.07
Sales per share $ 17.33
Book value per share (BVPS) $ 17.30
Ratios (Price Multiples)
Price to earnings (P/E) 56.60 20.66 12.35 10.03 15.58 16.63 34.85 15.47 24.06 32.58 20.68 13.68 23.67 24.73
Price to next year expected earnings 55.14 19.39 11.36 7.67 16.51 11.97 33.56 10.96 29.99 33.51 19.92 11.72 21.96 22.85
Price-earnings-growth (PEG) 21.43 3.16 1.43 0.33 0.43 9.09 0.38 5.47 0.82 3.05 3.01
Price to operating profit (P/OP) 36.72 18.40 10.10 7.55 14.97 12.96 30.27 10.29 18.59 24.42 16.47 13.19 18.68 18.86
Price to sales (P/S) 4.38 3.59 2.91 4.60 3.30 3.40 4.41 4.59 3.89 4.51 4.79 4.30 4.98 4.23 3.25
Price to book value (P/BV) 4.39 0.71 8.29 3.41 5.46 10.92 11.46 3.95 6.16 7.59 3.64 3.82 5.02 4.59

Based on: 10-K (filing date: 2019-02-22).

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.


Historical Valuation Ratios (Summary)

Abbott Laboratories, historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Price to earnings (P/E) 56.47 220.29 55.16 12.83 31.30
Price to operating profit (P/OP) 36.64 60.88 24.25 19.80 27.50
Price to sales (P/S) 4.37 3.84 3.70 2.78 3.53
Price to book value (P/BV) 4.38 3.40 3.76 2.68 3.32

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-27).

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. Abbott Laboratories’s P/E ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 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. Abbott Laboratories’s P/OP ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 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. Abbott Laboratories’s P/S ratio increased from 2016 to 2017 and from 2017 to 2018.
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. Abbott Laboratories’s P/BV ratio declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 1,756,470,269 1,746,333,892 1,727,997,596 1,473,241,861 1,508,977,828
Selected Financial Data (USD $)
Net earnings (in millions) 2,368  477  1,400  4,423  2,284 
Earnings per share (EPS)3 1.35 0.27 0.81 3.00 1.51
Share price1, 2 76.13 60.17 44.69 38.53 47.37
Ratio
P/E ratio4 56.47 220.29 55.16 12.83 31.30
Benchmarks
P/E Ratio, Competitors
AbbVie Inc. 20.60 35.47 16.54 17.01 55.08
Allergan PLC 5.60 31.94
Amgen Inc. 14.01 64.06 16.03 15.95 22.96
Biogen Inc. 14.79 28.83 15.41 16.67 31.27
Bristol-Myers Squibb Co. 16.81 103.55 20.56 64.22 49.80
Celgene Corp. 15.57 24.35 44.99 48.59 49.41
Eli Lilly & Co. 39.13 32.39 33.35 33.06
Gilead Sciences Inc. 15.26 22.75 6.83 6.75 12.85
Johnson & Johnson 23.74 268.10 20.08 18.80 17.15
Merck & Co. Inc. 33.46 61.63 46.14 31.64 13.94
Pfizer Inc. 21.58 9.99 28.10 26.37 23.03
Regeneron Pharmaceuticals Inc. 18.17 28.99 42.64 60.50 118.44
P/E Ratio, Sector
Pharmaceuticals & Biotechnology 24.70 40.95 18.35 19.56 23.76
P/E Ratio, Industry
Health Care 25.80 37.25 19.82 20.65 23.74

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-27).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Abbott Laboratories’s Annual Report.

2018 Calculations

3 EPS = Net earnings ÷ No. shares of common stock outstanding
= 2,368,000,000 ÷ 1,756,470,269 = 1.35

4 P/E ratio = Share price ÷ EPS
= 76.13 ÷ 1.35 = 56.47

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. Abbott Laboratories’s P/E ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 1,756,470,269 1,746,333,892 1,727,997,596 1,473,241,861 1,508,977,828
Selected Financial Data (USD $)
Operating earnings (in millions) 3,650  1,726  3,185  2,867  2,599 
Operating profit per share3 2.08 0.99 1.84 1.95 1.72
Share price1, 2 76.13 60.17 44.69 38.53 47.37
Ratio
P/OP ratio4 36.64 60.88 24.25 19.80 27.50
Benchmarks
P/OP Ratio, Competitors
AbbVie Inc. 18.35 19.63 10.49 11.61 28.64
Allergan PLC
Amgen Inc. 11.46 12.71 12.64 13.07 19.13
Biogen Inc. 11.13 13.70 11.08 12.09 23.10
Bristol-Myers Squibb Co. 16.16 28.87 19.79 53.18 38.52
Celgene Corp. 12.13 15.21 28.40 34.53 39.23
Eli Lilly & Co. 33.99 39.61 25.63 29.86 29.71
Gilead Sciences Inc. 10.15 7.45 5.23 5.50 10.19
Johnson & Johnson 18.34 18.94 16.09 16.50 13.36
Merck & Co. Inc. 25.08 22.58 33.62 20.29 29.30
Pfizer Inc. 17.19 15.62 16.88 15.52 15.88
Regeneron Pharmaceuticals Inc. 17.53 16.71 28.70 30.74 49.17
P/OP Ratio, Sector
Pharmaceuticals & Biotechnology 19.49 19.28 16.55 16.77 20.16
P/OP Ratio, Industry
Health Care 19.68 19.55 16.75 16.81 19.12

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-27).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Abbott Laboratories’s Annual Report.

2018 Calculations

3 Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 3,650,000,000 ÷ 1,756,470,269 = 2.08

4 P/OP ratio = Share price ÷ Operating profit per share
= 76.13 ÷ 2.08 = 36.64

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. Abbott Laboratories’s P/OP ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 1,756,470,269 1,746,333,892 1,727,997,596 1,473,241,861 1,508,977,828
Selected Financial Data (USD $)
Net sales (in millions) 30,578  27,390  20,853  20,405  20,247 
Sales per share3 17.41 15.68 12.07 13.85 13.42
Share price1, 2 76.13 60.17 44.69 38.53 47.37
Ratio
P/S ratio4 4.37 3.84 3.70 2.78 3.53
Benchmarks
P/S Ratio, Competitors
AbbVie Inc. 3.58 6.67 3.84 3.83 4.90
Allergan PLC 2.93 3.40 5.65 7.81 5.79
Amgen Inc. 5.22 5.82 5.65 5.28 6.13
Biogen Inc. 4.87 5.96 4.98 5.49 9.46
Bristol-Myers Squibb Co. 3.67 5.02 4.72 6.07 6.28
Celgene Corp. 4.13 5.52 8.04 8.50 13.06
Eli Lilly & Co. 5.15 3.71 4.18 4.02 4.03
Gilead Sciences Inc. 3.84 4.10 3.08 3.80 6.36
Johnson & Johnson 4.45 4.56 4.62 4.13 3.77
Merck & Co. Inc. 4.92 3.68 4.54 3.56 3.93
Pfizer Inc. 4.49 4.05 3.84 3.76 4.24
Regeneron Pharmaceuticals Inc. 6.62 5.92 7.86 9.38 14.62
P/S Ratio, Sector
Pharmaceuticals & Biotechnology 4.41 4.57 4.50 4.43 4.97
P/S Ratio, Industry
Health Care 3.39 3.48 3.31 3.33 3.75

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-27).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Abbott Laboratories’s Annual Report.

2018 Calculations

3 Sales per share = Net sales ÷ No. shares of common stock outstanding
= 30,578,000,000 ÷ 1,756,470,269 = 17.41

4 P/S ratio = Share price ÷ Sales per share
= 76.13 ÷ 17.41 = 4.37

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. Abbott Laboratories’s P/S ratio increased from 2016 to 2017 and from 2017 to 2018.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 1,756,470,269 1,746,333,892 1,727,997,596 1,473,241,861 1,508,977,828
Selected Financial Data (USD $)
Total Abbott shareholders’ investment (in millions) 30,524  30,897  20,538  21,211  21,526 
Book value per share (BVPS)3 17.38 17.69 11.89 14.40 14.27
Share price1, 2 76.13 60.17 44.69 38.53 47.37
Ratio
P/BV ratio4 4.38 3.40 3.76 2.68 3.32
Benchmarks
P/BV Ratio, Competitors
AbbVie Inc. 36.95 21.24 22.17 56.09
Allergan PLC 0.71 0.73 1.08 1.54 2.67
Amgen Inc. 9.41 5.02 4.14 3.94 4.59
Biogen Inc. 5.03 5.80 4.70 6.31 8.49
Bristol-Myers Squibb Co. 5.89 8.88 5.66 7.04 6.72
Celgene Corp. 10.22 10.34 13.63 13.15 15.14
Eli Lilly & Co. 12.87 7.33 6.33 5.51 5.14
Gilead Sciences Inc. 3.89 5.15 4.88 6.59 10.08
Johnson & Johnson 6.08 5.79 4.72 4.07 4.01
Merck & Co. Inc. 7.79 4.30 4.51 3.15 3.42
Pfizer Inc. 3.80 2.98 3.40 2.84 2.95
Regeneron Pharmaceuticals Inc. 5.07 5.66 8.58 10.53 16.22
P/BV Ratio, Sector
Pharmaceuticals & Biotechnology 5.24 4.48 4.16 3.89 4.77
P/BV Ratio, Industry
Health Care 4.79 4.29 3.93 3.60 4.47

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-27).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Abbott Laboratories’s Annual Report.

2018 Calculations

3 BVPS = Total Abbott shareholders’ investment ÷ No. shares of common stock outstanding
= 30,524,000,000 ÷ 1,756,470,269 = 17.38

4 P/BV ratio = Share price ÷ BVPS
= 76.13 ÷ 17.38 = 4.38

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. Abbott Laboratories’s P/BV ratio declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.