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 66th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 158% on a DCF basis. The most interesting components of our discounted cash flow analysis for AbbVie Inc ended up being:
The company's balance sheet shows it gets 63% of its capital from equity, and 37% of its capital from debt. Its equity weight surpasses that of only 22.77% 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 merely 6.07% 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 QDEL, HZNP, LXRX, HCSG, and AHPI.
Article Thesis With interest rates at an extremely low level, investors have to hunt for yield elsewhere, especially when they are living off the income their assets generate, e.g. in retirement. Dividend-paying stocks are one possibility to generate a sizeable yield on one's investment, but options can be another way...
Jonathan Weber on Seeking Alpha | September 16, 2020
AbbVie Inc. (ABBV) Morgan Stanley 18th Annual Global Healthcare Conference September 16, 2020 11:00 AM ET Company Participants Rick Gonzalez - Chairman & Chief Executive Officer Mike Severino - Vice Chairman & President Rob Michael - Executive Vice President & Chief Financial Officer Conference Call Participants Dave Risinger - Morgan...
SA Transcripts on Seeking Alpha | September 16, 2020
Today Allergan Aesthetics, an AbbVie company (NYSE: ABBV), announced the partnership between actress and producer Malin Akerman and the Allergan Aesthetics body contouring portfolio. Akerman is named the first Allergan Aesthetics body contouring partner in support of both CoolSculpting®, the 1 nonsurgical fat reduction treatment used most by doctors, and CoolTone™, the latest treatment in the portfolio used to strengthen, tone, and firm the abdomen, buttocks, and thigh muscles.
Often overlooked amid the market's gyrations, dividend income is an important element of total return. Consider recent results: in 2015, the S&P 500 delivered a total return of 1.4%, including dividends -- but excluding dividends, the market was down 0.7%. Capital gains were a bit easier to achieve in 2016-17, though we note that dividend payments still contributed about 15%-20% of total return for investors. And dividend payments softened the blow in 2018, when most market indices declined as the Federal Reserve hiked rates. Between 1930 and 2012, dividend income accounted for 42% of total return of the S&P 500, according to Morgan Stanley. Not all dividends are created equal, though, and it is important to understand the difference between high-yield stocks and dividend-growth sto...