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. More precisely, our analysis suggests the stock is undervalued by approximately 185.83% 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 62% of its capital from equity, and 38% of its capital from debt. Its equity weight surpasses that of merely 20.94% 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 only 10.56% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ABBV, try NVO, SEM, JAZZ, AGN, and HCA.