ABT

Abbott LaboratoriesHealthcare / Medical DevicesINTACT

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company offers generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, hypertriglyceridemia, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also provides laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion serology testing; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; and drug and alcohol test. In addition, the company offers pediatric and adult nutritional products and infant formula; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices. The company was formerly known as Abbott Alkaloidal Company and changed its name to Abbott Laboratories in 1915. Abbott Laboratories was founded in 1888 and is based in Abbott Park, Illinois.

Share Price
$101.95
52W: $81.97 - $137.49
DCF Fair Value
$70.05
-45.5% Premium
P/E (TTM)
33x
ROIC
11%
Operating Margin
14.7%
FCF Yield
4.1%
Debt / Equity
0.63x
Piotroski Score
9/9
Altman Z-Score
3.26
Market Cap
$177.6B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($70.05)

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

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$70.05
MOS Buy Target (-25%)
$52.54
Valuation Overlays:

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
$101.95
DCF Fair Value
$69.93
-45.8% Premium
$7,209M
$100M$7,209M (Reported)$50,000M
7.3%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$27,100M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$63.8B
PV of Terminal Value
$85.1B
Implied Enterprise Value
$148.9B
Implied Equity Value
$121.8B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$7,735$8,300$8,906$9,556$10,254$10,715$11,197$11,701$12,228$12,778
Present Value (PV)$7,097$6,986$6,877$6,770$6,664$6,389$6,125$5,872$5,630$5,397

Benjamin Graham & Buffett Value Models

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

Graham Number-125% Premium
$45.32

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

EPS: $3.09BVPS: $29.54
Revised Graham Formula-84.6% Premium
$55.23

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.

Buffett Owner Earnings3.9% Yield
$3.93 / share

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

Total: $6.8BYield: 3.9%

Reverse DCF: Market Growth Expectation

FAIR BARRIER
8.4% CAGR (Next 10 Yrs)

At the current price of $101.95, the market is assuming the business will compound Free Cash Flow at 8.4% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
ℹ Fair expectations: Requires steady execution.
Autonomous Thesis Underwriting

Surveil ABT with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Abbott Laboratories. 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 14.7% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Abbott Laboratories (ABT) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Abbott Laboratories.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Abbott Laboratories has an estimated DCF intrinsic fair value of $70.05 per share compared to its current market price of $101.95. This represents an estimated 45.5% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $45.32.

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