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:
We started the process of determining a valid price forecast for AbbVie Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that AbbVie Inc ranked in the 67th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 161.33%. The most interesting components of our discounted cash flow analysis for AbbVie Inc ended up being:
The company's balance sheet shows it gets 64% of its capital from equity, and 36% of its capital from debt. Notably, its equity weight is greater than only 18.86% of US equities in the Healthcare sector yielding a positive free cash flow.
AbbVie Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 7.31% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NVO, DVA, PCRX, LXRX, and EGRX can be thought of as valuation peers to ABBV, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
When it comes to evaluating returns on investment, the term “alpha” gets used a lot. For those unaware of what this term means, alpha refers to the percentage of return on investment above the risk-free rate, of which the Treasury bond rate is commonly used as a proxy. Stocks and...
On Friday, July 31, AbbVie (NYSE: ABBV) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.Earnings and Revenue Analysts covering AbbVie modeled for quarterly EPS of $2.19 on revenue of $10.08 billion. AbbVie reported a per-share profit of $2.260 when it published results during the same quarter last year. Sales in that period totaled $8.26 billion. If the company were to match the consensus estimate, earnings would be down 3.1%. Revenue would be up 21.01% from the same quarter last year. AbbVie's reported EPS has stacked up against analyst estimates in the past like this:Quarter Q1 2020 Q4 2020 Q3 2019 Q2 2019 EPS Estimate 2.25 2.19 2.30 2.20 EPS Actual 2.42 2.21 2.33 2.26 Revenue Estimate 8.33 B 8.70 B...