What is AbbVie Inc. (ABBV) DCF Fair Value and Intrinsic Value in 2026?

AbbVie Inc. (ABBV) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is AbbVie Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

AbbVie Inc. operates in the Healthcare sector (Drug Manufacturers - General) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is AbbVie Inc.'s financial health rating and Piotroski F-Score?

AbbVie Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor AbbVie Inc. (ABBV) for quarterly SEC filing thesis breaks?

LocalAlpha audits AbbVie Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksABBV

ABBV

AbbVie Inc.Healthcare / Drug Manufacturers - GeneralINTACT

AbbVie Inc., a research-based biopharmaceutical company, engages in the research and development, manufacturing, commercializing, and sale of medicines and therapies worldwide. The company offers Skyrizi to treat autoimmune diseases; Rinvoq to treat inflammatory diseases; Imbruvica for the treatment of adult patients with blood cancers; Venclexta to treat blood cancers; Elahere to treat various cancer; and Epkinly to treat lymphoma; and Emrelis for the treatment of lung cancer. It also provides facial injectables, plastics and regenerative medicine, body contouring, and skincare products; botox Cosmetic for the treatment of glabellar lines, crow's feet, forehead lines, and platysma bands; Juvederm Collection to treat volume loss in the temples, undereye, cheeks, chin, lips and lower face; Vraylar to treat schizophrenia, bipolar disorder, and depressive disorder; Duodopa to treat Parkinson's disease; Ubrelvy to treat migraine; Qulipta for episodic and chronic migraine; and Vyalev for the treatment of motor fluctuations, as well as Botox Therapeutic to treat chronic migraine, overactive bladder, spasticity, cervical dystonia, and other conditions. In addition, the company offers Ozurdex for visual impairment; Lumigan/Ganfort and Alphagan/Combigan for the reduction of elevated intraocular pressure in patients with open angle glaucoma or ocular hypertension; and other eye care products, including Refresh/Optive, Xen, Durysta, and Restasis. Further, it provides Mavyret to treat chronic hepatitis C virus genotype 1-6 infection; Creon, a pancreatic enzyme therapy; and Linzess/Constella to treat irritable bowel syndrome with constipation and chronic idiopathic constipation. The company was incorporated in 2012 and is headquartered in North Chicago, Illinois.

Share Price

$257.56

52W: $190.75 - $267.47

DCF Fair Value

$268.49

+4.1%

Thesis Hub

P/E (TTM)

72.8x

ROIC

30%

Operating Margin

40%

FCF Yield

3.7%

Debt / Equity

0.65x

Piotroski Score

8/9

Altman Z-Score

3.17

Market Cap

$455.1B

Price vs. Intrinsic Value Corridor

Modest Value ($257.56 vs $268.49 DCF)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$268.49

MOS Buy Target (-25%)

$201.37

Valuation Overlays: DCF Fair Value ($268.49) 25% MOS Buy Target ($201.37) Revised Graham ($124.93)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$257.56

DCF Fair Value

$268.52

+4.1%

Starting Free Cash Flow ($M)$16,870M

$100M$16,870M (Reported)$50,000M

Stage 1 Growth (Years 1-5)18.0%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$64,300M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$218.4B

PV of Terminal Value

$320.4B

Implied Enterprise Value

$538.8B

Implied Equity Value

$474.5B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$19,907	$23,490	$27,718	$32,707	$38,594	$40,331	$42,146	$44,043	$46,025	$48,096
Present Value (PV)	$18,263	$19,771	$21,403	$23,171	$25,084	$24,048	$23,055	$22,104	$21,191	$20,316

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number

N/A

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

Not calculable here: the formula takes a square root of EPS × book value, so it breaks down when trailing earnings (or book value) are negative. A company losing money has no defensive-investor price under Graham's classic test — lean on the DCF and solvency scores instead.

EPS: $3.54BVPS: $-3.36

Revised Graham Formula-106.2% Premium

$124.93

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings3.5% Yield

$9.07 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $16.0BYield: 3.5%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

9.6% CAGR (Next 10 Yrs)

At the current price of $257.56, the market is assuming the business will compound Free Cash Flow at 9.6% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil ABBV with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for AbbVie Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 40% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: AbbVie Inc. (ABBV) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for AbbVie Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, AbbVie Inc. has an estimated DCF intrinsic fair value of $268.49 per share compared to its current market price of $257.56. This represents an estimated 4.1% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $N/A.