Highly Regarded

Is AbbVie Inc. (ABBV) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Healthcare sector peers in our coverage

Insufficient Data TTM fundamentals · sector averages from covered peers

We don’t have enough peer data to compute a reliable sector comparison for ABBV right now.

ABBV has negative trailing-twelve-month earnings, so a P/E ratio isn't meaningful — we compare on price-to-sales instead.

The Numbers

P/E (TTM)

—

Sector avg: 27.2×

P/S (TTM)

—

Sector avg: 6.6×

Market Cap

$450.26B

EPS (TTM): —

Revenue (TTM)

—

Net income: —

Healthcare Peer Comparison

How ABBV's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
ABBV This page $254.76 —
LLY $1201.42 58.8×
JNJ $259.33 25.0×
UNH $418.05 21.8×
MRK $126.81 16.8×
PFE $23.74 13.8×

Is the Multiple Justified?

July 6, 2026

AbbVie's valuation is presented with negative TTM earnings, making a P/E ratio inapplicable. The company reported strong Q1 2026 results, with adjusted EPS increasing 7.7% year-over-year and revenues rising 12.4% (10.3% operationally). This performance was driven by immunology blockbusters Skyrizi and Rinvoq, successfully navigating the patent cliff of Humira. AbbVie raised its full-year 2026 adjusted EPS guidance to $14.08-$14.28 and total revenue guidance to $67.3 billion, reflecting management's confidence. Adjusted operating margin for Q1 2026 stood at 40.8%. Strategic moves, such as the acquisition of Apogee Therapeutics to strengthen its immunology pipeline and FDA approval for Skyrizi's pediatric treatment, aim to sustain revenue growth and expand market reach.

Sources

Frequently Asked Questions

Is ABBV overvalued or undervalued?
We don't have enough peer data to compute a sector comparison for ABBV right now.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing ABBV with its own Healthcare peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Healthcare names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Healthcare peers

PFE UNH JNJ MRK LLY