Abbott Laboratories
Exchange: NYSESector: HealthcareIndustry: Medical Devices
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 122,000 colleagues serve people in more than 160 countries. Connect with us at www.abbott.com and on LinkedIn, Facebook, Instagram, X and YouTube. i Mehdi, A., Taliercio, J. J., & Nakhoul, G. (2020, November 1). Contrast media in patients with kidney disease: An update. Cleveland Clinic Journal of Medicine. https://www.ccjm.org/content/87/11/683#:~:text=Nevertheless%2C%20CI%2DAKI%20remains%20real,24%25%20of%20patients%2C%20respectively. ii Masoudi FA, Ponirakis A, de Lemos JA, Jollis JG, Kremers M, Messenger JC, et al. Trends in U.S. Cardiovascular Care: 2016 Report From 4 ACC National Cardiovascular Data Registries. J Am Coll Cardiol. 2017;69(11):1427–50. iii Cook S, Walker A, Hügli O, Togni M, Meier B. Percutaneous coronary interventions in Europe: prevalence, numerical estimates, and projections based on data up to 2004. Clin Res Cardiol. 2007;96(6):375-382. doi:10.1007/s00392-007-0513-0. SOURCE Abbott
Current Price
$88.38
-0.50%GoodMoat Value
$72.81
17.6% overvaluedProfile
Valuation (TTM)
Market Cap$153.58B
P/E24.47
EV$186.31B
P/B2.91
Shares Out1.74B
P/Sales3.40
Revenue$45.13B
EV/EBITDA15.24
Abbott Laboratories (ABT) Stock Analysis
GoodMoat Analysis
Abbott Laboratories is a high-quality healthcare giant with a durable competitive moat, but its current valuation appears significantly above the GoodMoat target price, suggesting a lack of margin of safety for a value investor.
Read full analysis
Abbott Laboratories is a diversified healthcare leader operating in medical devices, diagnostics, nutrition, and branded generics. Applying the GoodMoat framework, the company demonstrates a strong, durable moat, likely scoring well on criteria like regulatory barriers, brand strength, and niche dominance in areas like continuous glucose monitoring. Its financial quality is solid, with a respectable 18.2% operating margin, a manageable debt-to-equity ratio of 0.25, and a consistent dividend. However, the valuation assessment presents a significant hurdle. The current price of $104.83 is 44% above the GoodMoat target of $72.81, indicating a negative margin of safety. This is corroborated by a P/E of 27.9x, which is high relative to the modest 4.4% YoY revenue growth. Following the Decision Framework, while Abbott likely passes the Moat & Quality Gate, it fails the Valuation & Risk Gate. The stock is priced for perfection, offering no discount to its estimated intrinsic value. For a value investor, this makes the current price unfavourable, though the underlying business remains worthy of monitoring for a more attractive entry point. Analysis based on data as of 2024-05-15.
Market Cap$153.58B
Current Price$88.38
P/E Ratio24.47
Forward P/E—
PEG Ratio-1.33
EPS$3.72
Book Value$30.37
P/B Ratio2.91
ABT Financial Charts
Cash vs Debt
Net Debt: 4.4B
Revenue
31.9B
FY19
34.6B
FY20
43.1B
FY21
43.7B
FY22
40.1B
FY23
42.0B
FY24
44.3B
FY25
Net Income
3.7B
FY19
4.5B
FY20
7.1B
FY21
6.9B
FY22
5.7B
FY23
13.4B
FY24
6.5B
FY25
ABT 52-Week Range
$82.56
$135.31
50-Day MA: $96.62200-Day MA: $116.77
Did you know?
ABT's revenue grew at a 5.6% CAGR over the last 6 years.
Abbott Laboratories (ABT) Financial Summary
Abbott Laboratories (ABT) is a Healthcare company in the Medical Devices industry, listed on NYSE. The stock currently trades at $88.38 with a market capitalization of $153.58B.
Key valuation metrics include a P/E ratio of 24.47, price-to-book ratio of 2.91, and EPS of $3.72. The company reports a profit margin of 13.9% and return on equity of 11.9%.
ABT Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $153.58B |
| P/E Ratio | 24.47 |
| EPS | $3.72 |
| P/B Ratio | 2.91 |
| P/S Ratio | 3.40 |
| EV/EBITDA | 15.24 |
| Dividend Yield | 2.68% |
| Profit Margin | 13.9% |
| Return on Equity | 11.9% |
| Debt/Equity | 0.25 |
ABT Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $31.90B | $3.69B |
| FY20 | $34.61B | $4.50B |
| FY21 | $43.08B | $7.07B |
| FY22 | $43.65B | $6.93B |
| FY23 | $40.11B | $5.72B |
| FY24 | $41.95B | $13.40B |
| FY25 | $44.33B | $6.52B |
Abbott Laboratories (ABT) Valuation
Based on GoodMoat's DCF model, Abbott Laboratories has a fair value estimate of $72.81. At the current price of $88.38, the stock appears 21.4% overvalued relative to our intrinsic value estimate.
ABT Quality Indicators
Abbott Laboratories maintains a profit margin of 13.9% and an operating margin of 18.2%. Return on equity stands at 11.9%. The current ratio is 1.58. Debt-to-equity ratio is 0.25.
About Abbott Laboratories
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 122,000 colleagues serve people in more than 160 countries. Connect with us at www.abbott.com and on LinkedIn, Facebook, Instagram, X and YouTube. i Mehdi, A., Taliercio, J. J., & Nakhoul, G. (2020, November 1). Contrast media in patients with kidney disease: An update. Cleveland Clinic Journal of Medicine. https://www.ccjm.org/content/87/11/683#:~:text=Nevertheless%2C%20CI%2DAKI%20remains%20real,24%25%20of%20patients%2C%20respectively. ii Masoudi FA, Ponirakis A, de Lemos JA, Jollis JG, Kremers M, Messenger JC, et al. Trends in U.S. Cardiovascular Care: 2016 Report From 4 ACC National Cardiovascular Data Registries. J Am Coll Cardiol. 2017;69(11):1427–50. iii Cook S, Walker A, Hügli O, Togni M, Meier B. Percutaneous coronary interventions in Europe: prevalence, numerical estimates, and projections based on data up to 2004. Clin Res Cardiol. 2007;96(6):375-382. doi:10.1007/s00392-007-0513-0. SOURCE Abbott
ABT Free Cash Flow
Abbott Laboratories generated $7.39B in trailing twelve-month free cash flow, representing an FCF yield of 4.82%. This moderate FCF yield indicates reasonable cash generation.
ABT Shares Outstanding
Abbott Laboratories has 1.74 billion shares outstanding at a share price of $88.38, giving it a market capitalization of $153.58B.
ABT Recent Insider Trades
Recent insider transactions at Abbott Laboratories include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| STARKS DANIEL J (Director) | BUY | 10,000 | $926537.00 |
| Boudreau Philip P (EVP AND CFO) | BUY | 2,200 | $201300.00 |
| Shroff Eric (Senior Vice President) | SELL | 709 | $81946.22 |