Abbott Laboratories Price To Earning vs. Gross Profit

ABT Stock  USD 114.60  0.90  0.78%   
Based on Abbott Laboratories' profitability indicators, Abbott Laboratories is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Abbott Laboratories' ability to earn profits and add value for shareholders. At this time, Abbott Laboratories' Price To Sales Ratio is comparatively stable compared to the past year. EV To Sales is likely to gain to 5.23 in 2024, whereas Days Of Sales Outstanding is likely to drop 50.15 in 2024. At this time, Abbott Laboratories' Total Other Income Expense Net is comparatively stable compared to the past year. Net Income Applicable To Common Shares is likely to gain to about 8.4 B in 2024, whereas Income Before Tax is likely to drop slightly above 3.8 B in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.620.5518
Moderately Up
Pretty Stable
Net Profit Margin0.150.1427
Sufficiently Up
Very volatile
Operating Profit Margin0.210.1615
Significantly Up
Pretty Stable
Pretax Profit Margin0.210.1661
Significantly Up
Pretty Stable
Return On Assets0.120.0782
Way Up
Very volatile
Return On Equity0.260.1483
Way Up
Very volatile
For Abbott Laboratories profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Abbott Laboratories to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Abbott Laboratories utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Abbott Laboratories's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Abbott Laboratories over time as well as its relative position and ranking within its peers.
  

Abbott Laboratories' Revenue Breakdown by Earning Segment

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For more information on how to buy Abbott Stock please use our How to Invest in Abbott Laboratories guide.
Is Health Care Equipment & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Abbott Laboratories. If investors know Abbott will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Abbott Laboratories listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.146
Dividend Share
2.2
Earnings Share
3.29
Revenue Per Share
23.682
Quarterly Revenue Growth
0.049
The market value of Abbott Laboratories is measured differently than its book value, which is the value of Abbott that is recorded on the company's balance sheet. Investors also form their own opinion of Abbott Laboratories' value that differs from its market value or its book value, called intrinsic value, which is Abbott Laboratories' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Abbott Laboratories' market value can be influenced by many factors that don't directly affect Abbott Laboratories' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Abbott Laboratories' value and its price as these two are different measures arrived at by different means. Investors typically determine if Abbott Laboratories is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Abbott Laboratories' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Abbott Laboratories Gross Profit vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Abbott Laboratories's current stock value. Our valuation model uses many indicators to compare Abbott Laboratories value to that of its competitors to determine the firm's financial worth.
Abbott Laboratories is rated fourth in price to earning category among its peers. It is number one stock in gross profit category among its peers fabricating about  1,018,185,584  of Gross Profit per Price To Earning. At this time, Abbott Laboratories' Gross Profit is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Abbott Laboratories by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Abbott Gross Profit vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Abbott Laboratories

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
24.14 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Abbott Laboratories

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
24.58 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Abbott Gross Profit Comparison

Abbott Laboratories is currently under evaluation in gross profit category among its peers.

Abbott Laboratories Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Abbott Laboratories, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Abbott Laboratories will eventually generate negative long term returns. The profitability progress is the general direction of Abbott Laboratories' change in net profit over the period of time. It can combine multiple indicators of Abbott Laboratories, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-7.8 B-7.4 B
Operating Income6.5 B3.8 B
Income Before Tax6.7 B3.8 B
Total Other Income Expense Net186 M195.3 M
Net Income5.7 B3.3 B
Income Tax Expense941 M792.1 M
Net Income Applicable To Common SharesB8.4 B
Net Income From Continuing Ops5.2 B4.3 B
Non Operating Income Net Other577.3 M606.2 M
Interest Income384 M269 M
Net Interest Income-248 M-260.4 M
Change To Netincome787.8 M827.1 M
Net Income Per Share 3.30  3.47 
Income Quality 1.27  1.47 
Net Income Per E B T 0.86  0.63 

Abbott Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Abbott Laboratories. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Abbott Laboratories position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Abbott Laboratories' important profitability drivers and their relationship over time.

Use Abbott Laboratories in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Abbott Laboratories position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Abbott Laboratories will appreciate offsetting losses from the drop in the long position's value.

Abbott Laboratories Pair Trading

Abbott Laboratories Pair Trading Analysis

The ability to find closely correlated positions to Abbott Laboratories could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Abbott Laboratories when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Abbott Laboratories - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Abbott Laboratories to buy it.
The correlation of Abbott Laboratories is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Abbott Laboratories moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Abbott Laboratories moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Abbott Laboratories can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Abbott Laboratories position

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Additional Tools for Abbott Stock Analysis

When running Abbott Laboratories' price analysis, check to measure Abbott Laboratories' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Abbott Laboratories is operating at the current time. Most of Abbott Laboratories' value examination focuses on studying past and present price action to predict the probability of Abbott Laboratories' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Abbott Laboratories' price. Additionally, you may evaluate how the addition of Abbott Laboratories to your portfolios can decrease your overall portfolio volatility.