Abbott Laboratories Valuation
| ABT Stock | USD 91.13 -1.35 -1.46% |
Below Model Estimate
Today
Current trading conditions suggest that Abbott Laboratories' price fluctuation is Very Low right now. Macroaxis calculates the intrinsic value estimate of Abbott Laboratories using a 3 months time horizon. A broader horizon usually helps produce a more dependable value estimate.
Value Estimates Divergence
Abbott Laboratories trades at $91.13 against a model-derived intrinsic value estimate of $106.97 per share, reading as below model estimate. For Abbott Laboratories, the valuation baseline starts with a return on equity of 12% and is then cross-checked against technical indicators and Probability Of Bankruptcy.| Historical | Market 91.13 | Intrinsic 106.97 | Target 118.64 | Sentiment 91.19 | Naive 86.61 | DCF 112.31 |
Estimating the intrinsic value of Abbott Laboratories starts with Abbott Laboratories' forward earnings trajectory and the discount rate that reflects its risk profile. Since Abbott Laboratories is exchange-traded, market price reflects real-time supply and demand — intrinsic value reflects the underlying economics. Assessing the intrinsic value estimate means looking beyond short-term price movements to long-term earnings power.
Accurately estimating the upside and downside potential of Abbott Laboratories is critical for allocation decisions. The spread between upside and downside reflects the degree of uncertainty the market is pricing into Abbott Laboratories' earnings trajectory. Scenario-based ranges are more useful than point estimates because they expose the assumptions behind the valuation.
For Abbott Laboratories, intrinsic valuation discounts forecasted free cash flows at the weighted average cost of capital. Discounted cash flow, comparable company multiples, and asset-based valuation each capture different dimensions. The reliability of any Abbott Laboratories valuation depends on the quality of its inputs and assumptions.
Main Profitability Drivers
Abbott Laboratories' net margin stands at 17.00%, with operating margin at 21.00%. The 4.00 percentage-point gap between operating and net margins points to non-operating costs such as interest expense or taxes reducing bottom-line profitability. Abbott Laboratories' revenue base of 44.33 Billion yielded 25.49 Billion in gross profit at a 57.5% gross margin, while net income came in at 6.52 Billion. At 12.00% ROE and 12.00% ROA, Abbott Laboratories' efficiency metrics offer insight into capital and asset utilization. The weight of evidence across Abbott Laboratories' profitability measures points to strengthening financial performance. The full picture is available through Abbott Laboratories' complete profitability review to assess how these metrics compare over time.
Price Book 3.0827 | Gross Profit | Price Sales 3.5605 | Profit Margin | Enterprise Value Revenue 3.6695 |
Abbott Laboratories Cash | 8.95 Billion |
Cash stood at 8.52 Billion as of December 31, 2025.
Revenue by Product
Abbott Laboratories' top line is composed of 3 product-level revenue streams. Medical Devices leads at 5.67 Billion, representing roughly 63.1% of the total, followed by Nutritional Products at 1.94 Billion (21.6%). Abbott Laboratories' revenue profile shows high single-segment dependence, a factor best evaluated against the stability of that product market.Abbott Laboratories operates as a medical equipment provider generating revenue through device sales, innovation, and healthcare demand, forming the primary lens for valuation. Trading as a growth-weighted stock in Health Care Equipment & Supplies, its earnings multiple reflects expectations for durable earnings expansion and platform-level economics. Below, the key valuation drivers are examined to determine what the market is pricing and whether the underlying data supports it.
Total Value Analysis
The market-value snapshot for Abbott Laboratories reflects enterprise value of 165.62 B, market capitalization of 160.7 B, debt of 15.07 B, and cash and equivalents of 6.82 B as of latest reporting. Reviewing Abbott Laboratories fundamentals clarifies whether the enterprise-value composition reflects durable capital structure or temporary balance-sheet effects.| Takeover Price | Market Cap | Debt Obligations | Cash & Equivalents |
165.62 B | 160.7 B | 15.07 B | 6.82 B |
Investor Information
About 82.0% of the company shares are held by institutions such as insurance companies. The book value of Abbott Laboratories was presently reported as 30.02. The company has Price/Earnings To Growth (PEG) ratio of 1.37. Abbott Laboratories had its last dividend issued on the 15th of April 2026. The company completed a 10000:4798 stock split on 2nd of January 2013. Reviewing balance sheet structure and operating performance, Abbott Laboratories appears to maintain serviceable financial positioning. Operating returns remain positive, supporting continued earnings capacity.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.21 | 0.1816 |
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| Total Cash From Operating Activities | 5.4 B | 9.6 B |
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| Operating Income | 4.1 B | 8 B |
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Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Abbott Laboratories has an asset utilization ratio of 51.12 percent. This implies that the Company is making $0.51 for each dollar of assets. An increasing asset utilization means that Abbott Laboratories is more efficient with each dollar of assets it utilizes for everyday operations.Macro event markers
Discounted Cash Flow Analysis
Abbott Laboratories screens below its custom levered DCF estimate, with implied equity value per share of 112.31 against a market price of 91.15. Relative to the modeled value, the stock sits roughly 23.2% lower. Current assumptions include 7.25% WACC, 4.0% perpetual growth, and about 7.93 Billion of next-period free cash flow. Discounted forecast cash flows sum to about 30.50 Billion before the terminal component, and present terminal value still represents roughly 85.0% of enterprise value. Terminal value driving 85.0% of the total means the output is heavily influenced by perpetual growth and discount rate assumptions beyond the explicit forecast horizon.Model Value / Share
112.31
Equity value per share from the current custom levered DCF summary row.
Market Price
91.15
Current market price used by the same scenario.
Model Upside
23.2%
Market price sits below the model output.
WACC / LT Growth
7.25% / 4.0%
Forecast horizon: 2021 to 2030Terminal value share of EV: 85.0%
Abbott Market Price vs. Intrinsic Value
This chart compares observed market pricing with the model-derived equity value per share across forecast periods. It also illustrates the relative premium or discount, expressed as a percentage difference between market valuation and modeled intrinsic value.
Projected Revenue and Levered Free Cash Flow
Revenue and levered free cash flow projections are presented in billions, outlining the expected financial trajectory over the modeled horizon.
Key Model Assumptions
The inputs below reflect the core assumptions applied in the valuation model, including growth expectations, discount rates, and capital structure considerations.
| Input | Current Value |
|---|---|
| Weighted Average Cost of Capital | 7.25% |
| Long-Term Growth Rate | 4.0% |
| Cost of Equity | 7.61% |
| After-Tax Cost of Debt | 3.02% |
| Debt Weighting | 8.64% |
| Equity Weighting | 91.36% |
| Net Debt | 6.54 Billion |
| Enterprise Value | 202.74 Billion |
| Present Terminal Value | 172.24 Billion |
| Terminal Value Share of EV | 85.0% |
Forecast Detail and Valuation Progression
This table presents the underlying forecast data used in the valuation, including revenue, cash flow generation, discounting effects, and the resulting per-share value across each projected period.
| Year | Revenue | Revenue Growth | Free Cash Flow | PV of LFCF | Equity Value / Share |
|---|---|---|---|---|---|
| 2021 | 43.08 Billion | 0.00% | 8.65 Billion | 0.0 | 112.31 |
| 2022 | 43.65 Billion | 1.34% | 7.8 Billion | 0.0 | 112.35 |
| 2023 | 40.11 Billion | -8.12% | 5.06 Billion | 0.0 | 112.32 |
| 2024 | 41.95 Billion | 4.59% | 6.35 Billion | 0.0 | 112.10 |
| 2025 | 44.33 Billion | 5.67% | 7.39 Billion | 0.0 | 112.45 |
| 2026 | 44.71 Billion | 0.87% | 7.37 Billion | 6.87 Billion | 112.31 |
| 2027 | 45.1 Billion | 0.87% | 7.43 Billion | 6.46 Billion | 112.31 |
| 2028 | 45.5 Billion | 0.87% | 7.5 Billion | 6.08 Billion | 112.31 |
| 2029 | 45.89 Billion | 0.87% | 7.56 Billion | 5.72 Billion | 112.31 |
| 2030 | 46.29 Billion | 0.87% | 7.63 Billion | 5.38 Billion | 112.31 |
Profitability Analysis
Based on Abbott Laboratories' financial statements, Abbott Laboratories is profitable with a net margin of 17.0% and operating margin of 21.0%, reporting net income of 6.52 Billion. Return on equity stands at 12.0%. Profitability trends are broadly favorable, with a majority of key metrics improving year over year.Net Income | First Reported 1985-09-30 | Previous Quarter 1.8 B | Current Value 1.1 B | Quarterly Volatility 864.5 M |
Macro event markers
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.59 | 0.5551 |
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| Net Profit Margin | 0.17 | 0.1472 |
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| Operating Profit Margin | 0.21 | 0.1816 |
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| Pretax Profit Margin | 0.21 | 0.191 |
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| Return On Assets | 0.12 | 0.0752 |
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| Return On Equity | 0.12 | 0.1251 |
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The profitability picture for Abbott Laboratories starts with how effectively revenue converts to earnings. Net margin of 17.0% reflects solid earnings conversion and cost discipline relative to revenue. Margin trends and return metrics below indicate whether the earnings profile is strengthening or deteriorating. Abbott Laboratories reports return on equity of 12.0%, positive but not at levels that signal strong capital efficiency.
Earnings per Share Projection vs Actual
Analyst consensus on Abbott Laboratories' EPS captures the range of professional forecasts and their trajectory over time. An operating margin of 21.0% frames the cost structure behind Abbott Laboratories' reported EPS. Projected earnings per share for Abbott Laboratories anchor the market's pricing of near-term earnings power. Consensus estimates may not capture non-recurring items or stock-compensation effects, so testing against the current net margin profile (17.0%), guidance revisions, and prior forecast error adds precision. Abbott Laboratories reported estimated earnings of 1.28 in earnings per share on 30th of June 2026. The strongest signal comes from comparing this forecast against the company's historical beat/miss rate and recent guidance revisions.Macro event markers
Earnings Estimation Breakdown
28 analysts contribute to the current consensus. The last reported EPS was 1.15 as of 31st of March 2026.
Last Reported EPS
1.26
Lowest
1.28
Expected EPS
1.29
Highest
Analyst estimate range around the current expected EPS projection.
Earnings Projection Consensus
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 30th of June 2026 | Current EPS (TTM) | |
| 28 | 95.74% | 1.15 | 1.28 | 3.57 |
Ownership Allocation
The majority of Abbott Laboratories' outstanding shares are owned by institutional investors. These positions are typically held by large asset managers, pension funds, and index funds that manage capital on behalf of millions of clients. Institutions of this scale are required to disclose their holdings through 13F filings with the SEC, providing visibility into ownership changes each quarter.Revenue and Profit Overview
The company reported last year's revenue of 44.33 B. Total Income to common stockholders was 6.52 B with profit before taxes, overhead, and interest of 25.49 B.Historical Cash Distributions
Abbott Laboratories dividend payments may indicate management's confidence in long-term earnings stability. Reliable dividends generally reflect predictable cash generation and prudent financial management. For a deeper review of payout history, readers may check historical dividend payments.
| 13th of February 2026 | ||
| 17th of November 2025 | ||
| 15th of August 2025 | ||
| 15th of May 2025 | ||
| 14th of February 2025 | ||
| 15th of November 2024 | ||
| 15th of August 2024 | ||
| 15th of May 2024 |
Interpreting Recent Signals
At 24.14 times earnings, the market views Abbott Laboratories's trajectory as broadly consistent with peers in Health Care Equipment & Supplies. At 17.0%, the margin structure places Abbott Laboratories in a range where operational efficiency improvements would have an outsized impact on earnings. Leverage is moderate at 0.46, broadly consistent with norms in Health Care Equipment & Supplies and manageable under current conditions. The 12.0% ROE places Abbott Laboratories in a range where the business covers its cost of capital but has room to improve how effectively equity translates into earnings. The combination of a meaningful dividend yield and solid margins positions Abbott Laboratories as an income candidate, though payout sustainability depends on continued cash-flow generation at recent levels. The current valuation prices in steady earnings performance roughly in line with historical trends, meaning future performance depends more on meeting those expectations than exceeding them. Longer-term, forward earnings expectations and sector dynamics will shape whether the market reassesses this positioning.
Overall Interpretation
Across the key valuation dimensions, Abbott Laboratories presents a moderately profitable business with a manageable capital structure within Health Care Equipment & Supplies. The earnings and capital-return profile places the company within the mid-range of its peer group, with performance that supports but does not clearly exceed current valuation levels. The data points to a fundamentally sound business - Abbott Laboratories's valuation is well supported at current levels, with the forward trajectory tied to forward earnings expectations and sector dynamics.
Valuation Framework, Methodology & Assumptions
Abbott Laboratories is a large-cap equity in Health Care Equipment & Supplies, Health Care Equipment & Services, Health Care categories. Current pricing reflects market expectations around growth and margins. Profitability indicators are currently positive. For Abbott Laboratories, the leading valuation metrics are enterprise value of 165.62 B, P/E of 24.14; additional context comes from P/B of 3.08, P/S of 3.56.
Abbott Laboratories metrics are compiled from periodic company reporting and market reference feeds and normalized before display. Analyst projections are included when active coverage applies. Valuation outputs are model-derived and depend on published assumptions and reference inputs.
The analysis above is generated by quantitative models and is provided for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or an endorsement to buy or sell any security. All investing involves risk, including the possible loss of principal. Consult a qualified financial advisor before making investment decisions. See our Terms of Use for full details.
Financial data referenced in this analysis is derived from publicly available SEC filings, audited financial statements, and third-party market data providers. The intrinsic value estimate is generated by Macroaxis quantitative models that incorporate fundamental analysis, technical indicators, and risk metrics.
The methodology combines multiple analytical inputs:
- Fundamental analysis - financial statements, profitability ratios, debt structure, and cash flow metrics sourced from SEC filings and public financial reports
- Technical indicators - historical price patterns, momentum signals, and volatility measures
- Risk assessment - probability of bankruptcy models, market risk metrics, and downside scenario analysis
- Peer comparison - relative valuation against industry peers using standardized multiples
Model outputs are refreshed periodically as new financial data becomes available. Past model performance is not indicative of future results. The intrinsic value estimate reflects a point-in-time calculation and should be considered alongside other research and professional advice.
Data sourced from SEC filings (EDGAR), public financial statements, and market data providers.
Editorial review and methodology oversight provided by: Ellen Johnson, Member of Macroaxis Editorial Board
Growth Indicators
Growth-focused analysis of Abbott Laboratories matters because high expectations can support outsized upside but also sharper repricing when execution slips. A disciplined growth review keeps upside potential and expectation risk visible at the same time.
| Common Stock Shares Outstanding | 1.7 B | |
| Quarterly Earnings Growth Y O Y | -19.70% | |
| Forward Price Earnings | 16.6945 |
Abbott Laboratories Current Valuation Indicators
A net-worth review of Abbott Laboratories links market cap to balance-sheet health, cash flow, and implied growth expectations. Current market capitalization is about 160.7 Billion, enterprise value is near 165.62 Billion, and annual revenue is around 44.33 Billion. Reported values are derived from company filings, audited financial statements, and market data, and are standardized within Macroaxis quantitative models for consistency. Model outputs reflect a point-in-time estimate based on available data and assumptions and should be interpreted alongside changes in operating performance, market conditions, and forward expectations.