Abbvie develops and markets therapies that address a range of diseases. The Company's products are focused on treating conditions, such as chronic autoimmune diseases, including rheumatoid arthritis, psoriasis and Crohn's disease, hepatitis C, human immunodeficiency virus, endometriosis, thyroid disease, Parkinson's disease, complications associated with chronic kidney disease and cystic fibrosis, and other health conditions, such as low testosterone. The company was founded in 2012 and is based in North Chicago, Illinois.
ABBV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ABBV, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that AbbVie Inc ranked in the 67th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 155.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of AbbVie Inc, consider:
The company's balance sheet shows it gets 69% of its capital from equity, and 31% of its capital from debt. Its equity weight surpasses that of merely 23.64% of free cash flow generating stocks in the Healthcare sector.
AbbVie Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 11.31% of tickers in our DCF set.
ABBV's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 11.31% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of AbbVie Inc? See MCK, NVO, CHE, PCRX, and DVA.
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