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Abbott Laboratories (NYSE:ABT)


Common Stock Valuation Ratios (Price Multiples)

Beginner level


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. Eli Lilly & Co. Gilead Sciences Inc. Johnson & Johnson Merck & Co. Inc. Pfizer Inc. Regeneron Pharmaceuticals Inc. Vertex Pharmaceuticals Inc. Zoetis Inc. Pharmaceuticals & Biotechnology Health Care
Selected Financial Data
Current share price (P) $79.45
No. shares of common stock outstanding 1,763,433,243
Growth rate (g) -3.94%
 
Earnings per share (EPS) $2.09
Next year expected EPS $2.01
Operating profit per share $2.57
Sales per share $18.09
Book value per share (BVPS) $17.63
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 38.00 13.77 15.45 8.88 36.45 16.06 18.35 23.38 19.65 11.47 25.65 52.50 36.29 20.93 20.95
Price to next year expected earnings 39.56 11.00 13.56 6.68 38.01 13.94 14.50 28.17 20.34 10.89 21.08 47.80 25.92 19.56 19.41
Price to operating profit (P/OP) 30.91 8.36 12.52 7.43 21.20 26.85 23.05 17.84 16.67 14.17 24.56 51.59 27.67 18.35 18.08
Price to sales (P/S) 4.39 3.26 3.59 5.46 3.64 4.79 5.98 4.47 4.31 4.13 3.61 6.90 14.84 8.70 4.50 3.28
Price to book value (P/BV) 4.51 0.99 12.52 3.92 2.43 51.24 4.39 5.94 7.46 2.96 4.89 10.15 20.10 4.99 4.43

Based on: 10-K (filing date: 2020-02-21).

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)

Abbott Laboratories, historical price multiples

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Price to earnings (P/E) 41.83 56.47 220.29 55.16 12.83
Price to operating profit (P/OP) 34.03 36.64 60.88 24.25 19.80
Price to sales (P/S) 4.83 4.37 3.84 3.70 2.78
Price to book value (P/BV) 4.96 4.38 3.40 3.76 2.68

Based on: 10-K (filing date: 2020-02-21), 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).

Valuation 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 decreased from 2017 to 2018 and from 2018 to 2019.
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 decreased from 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
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 increased from 2017 to 2018 and from 2018 to 2019.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 1,763,433,243 1,756,470,269 1,746,333,892 1,727,997,596 1,473,241,861
Selected Financial Data (US$)
Net earnings (in millions) 3,687  2,368  477  1,400  4,423 
Earnings per share (EPS)2 2.09 1.35 0.27 0.81 3.00
Share price1, 3 87.45 76.13 60.17 44.69 38.53
Valuation Ratio
P/E ratio4 41.83 56.47 220.29 55.16 12.83
Benchmarks
P/E Ratio, Competitors5
AbbVie Inc. 17.82 20.60 35.47 16.54 17.01
Allergan PLC 5.60 31.94
Amgen Inc. 17.07 14.01 64.06 16.03 15.95
Biogen Inc. 9.97 14.79 28.83 15.41 16.67
Bristol-Myers Squibb Co. 41.99 16.81 103.55 20.56 64.22
Eli Lilly & Co. 16.19 39.13 32.39 33.35
Gilead Sciences Inc. 16.45 15.26 22.75 6.83 6.75
Johnson & Johnson 25.99 23.74 268.10 20.08 18.80
Merck & Co. Inc. 20.60 33.46 61.63 46.14 31.64
Pfizer Inc. 11.63 21.58 9.99 28.10 26.37
Regeneron Pharmaceuticals Inc. 19.86 18.17 28.99 42.64 60.50
Vertex Pharmaceuticals Inc. 52.90 22.59 155.08
Zoetis Inc. 45.89 28.68 44.09 31.63 62.14
P/E Ratio, Sector
Pharmaceuticals & Biotechnology 22.57 25.26 43.06 18.12 19.56
P/E Ratio, Industry
Health Care 23.50 26.35 39.10 19.92 21.00

Based on: 10-K (filing date: 2020-02-21), 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).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 3,687,000,000 ÷ 1,763,433,243 = 2.09

3 Closing price as at the filing date of Abbott Laboratories’s Annual Report.

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 87.45 ÷ 2.09 = 41.83

5 Click competitor name to see calculations.

Valuation 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 decreased from 2017 to 2018 and from 2018 to 2019.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 1,763,433,243 1,756,470,269 1,746,333,892 1,727,997,596 1,473,241,861
Selected Financial Data (US$)
Operating earnings (in millions) 4,532  3,650  1,726  3,185  2,867 
Operating profit per share2 2.57 2.08 0.99 1.84 1.95
Share price1, 3 87.45 76.13 60.17 44.69 38.53
Valuation Ratio
P/OP ratio4 34.03 36.64 60.88 24.25 19.80
Benchmarks
P/OP Ratio, Competitors5
AbbVie Inc. 10.82 18.35 19.63 10.49 11.61
Allergan PLC
Amgen Inc. 13.84 11.46 12.71 12.64 13.07
Biogen Inc. 8.34 11.13 13.70 11.08 12.09
Bristol-Myers Squibb Co. 24.42 16.16 28.87 19.79 53.18
Eli Lilly & Co. 27.08 33.99 39.61 25.63 29.86
Gilead Sciences Inc. 20.66 10.15 7.45 5.23 5.50
Johnson & Johnson 19.83 18.34 18.94 16.09 16.50
Merck & Co. Inc. 17.47 25.08 22.58 33.62 20.29
Pfizer Inc. 14.36 17.19 15.62 16.88 15.52
Regeneron Pharmaceuticals Inc. 19.01 17.53 16.71 28.70 30.74
Vertex Pharmaceuticals Inc. 51.98 74.57 331.55 2,143.58
Zoetis Inc. 35.00 22.59 22.33 18.65 28.09
P/OP Ratio, Sector
Pharmaceuticals & Biotechnology 19.78 20.43 20.04 16.41 16.74
P/OP Ratio, Industry
Health Care 20.27 20.56 20.22 16.86 17.06

Based on: 10-K (filing date: 2020-02-21), 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).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 4,532,000,000 ÷ 1,763,433,243 = 2.57

3 Closing price as at the filing date of Abbott Laboratories’s Annual Report.

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 87.45 ÷ 2.57 = 34.03

5 Click competitor name to see calculations.

Valuation 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 decreased from 2017 to 2018 and from 2018 to 2019.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 1,763,433,243 1,756,470,269 1,746,333,892 1,727,997,596 1,473,241,861
Selected Financial Data (US$)
Net sales (in millions) 31,904  30,578  27,390  20,853  20,405 
Sales per share2 18.09 17.41 15.68 12.07 13.85
Share price1, 3 87.45 76.13 60.17 44.69 38.53
Valuation Ratio
P/S ratio4 4.83 4.37 3.84 3.70 2.78
Benchmarks
P/S Ratio, Competitors5
AbbVie Inc. 4.22 3.58 6.67 3.84 3.83
Allergan PLC 4.05 2.93 3.40 5.65 7.81
Amgen Inc. 6.03 5.22 5.82 5.65 5.28
Biogen Inc. 4.08 4.87 5.96 4.98 5.49
Bristol-Myers Squibb Co. 5.52 3.67 5.02 4.72 6.07
Eli Lilly & Co. 6.03 5.15 3.71 4.18 4.02
Gilead Sciences Inc. 4.00 3.84 4.10 3.08 3.80
Johnson & Johnson 4.79 4.45 4.56 4.62 4.13
Merck & Co. Inc. 4.33 4.92 3.68 4.54 3.56
Pfizer Inc. 3.66 4.49 4.05 3.84 3.76
Regeneron Pharmaceuticals Inc. 5.34 6.62 5.92 7.86 9.38
Vertex Pharmaceuticals Inc. 14.95 15.54 16.42 12.51 20.38
Zoetis Inc. 11.00 7.03 7.18 5.31 4.42
P/S Ratio, Sector
Pharmaceuticals & Biotechnology 4.85 4.56 4.65 4.44 4.37
P/S Ratio, Industry
Health Care 3.68 3.49 3.53 3.27 3.28

Based on: 10-K (filing date: 2020-02-21), 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).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 31,904,000,000 ÷ 1,763,433,243 = 18.09

3 Closing price as at the filing date of Abbott Laboratories’s Annual Report.

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 87.45 ÷ 18.09 = 4.83

5 Click competitor name to see calculations.

Valuation 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 2017 to 2018 and from 2018 to 2019.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 1,763,433,243 1,756,470,269 1,746,333,892 1,727,997,596 1,473,241,861
Selected Financial Data (US$)
Total Abbott shareholders’ investment (in millions) 31,088  30,524  30,897  20,538  21,211 
Book value per share (BVPS)2 17.63 17.38 17.69 11.89 14.40
Share price1, 3 87.45 76.13 60.17 44.69 38.53
Valuation Ratio
P/BV ratio4 4.96 4.38 3.40 3.76 2.68
Benchmarks
P/BV Ratio, Competitors5
AbbVie Inc. 36.95 21.24 22.17
Allergan PLC 1.12 0.71 0.73 1.08 1.54
Amgen Inc. 13.84 9.41 5.02 4.14 3.94
Biogen Inc. 4.40 5.03 5.80 4.70 6.31
Bristol-Myers Squibb Co. 2.80 5.89 8.88 5.66 7.04
Eli Lilly & Co. 51.67 12.87 7.33 6.33 5.51
Gilead Sciences Inc. 3.93 3.89 5.15 4.88 6.59
Johnson & Johnson 6.61 6.08 5.79 4.72 4.07
Merck & Co. Inc. 7.83 7.79 4.30 4.51 3.15
Pfizer Inc. 3.00 3.80 2.98 3.40 2.84
Regeneron Pharmaceuticals Inc. 3.79 5.07 5.66 8.58 10.53
Vertex Pharmaceuticals Inc. 10.23 10.68 20.14 18.42 22.38
Zoetis Inc. 25.42 18.74 21.52 17.46 19.72
P/BV Ratio, Sector
Pharmaceuticals & Biotechnology 5.38 5.31 4.53 4.09 3.83
P/BV Ratio, Industry
Health Care 4.96 4.86 4.34 3.89 3.56

Based on: 10-K (filing date: 2020-02-21), 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).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Total Abbott shareholders’ investment ÷ No. shares of common stock outstanding
= 31,088,000,000 ÷ 1,763,433,243 = 17.63

3 Closing price as at the filing date of Abbott Laboratories’s Annual Report.

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 87.45 ÷ 17.63 = 4.96

5 Click competitor name to see calculations.

Valuation 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 increased from 2017 to 2018 and from 2018 to 2019.