ABT
Abbott Laboratories
$99.60
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 78.5% above fair value
You pay
$99.60
Bear
$44.64
Fair
$55.80
Bull
$66.96
Bear
$44.64
-55.2%
$3.72 × 12x P/E
Fair
$55.80
-44.0%
$3.72 × 15x P/E
Bull
$66.96
-32.8%
$3.72 × 18x P/E
Adjust Assumptions
15.0x
3.72$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
26.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (42 analysts)
$119.91
Divergence from AlphaVal
53%
Summary
Applying a 15x P/E to adjusted EPS of $3.72, the base-case value is $55.80 per share. DDM cross-check: $135.97.
Warnings
Dividend-based valuation: $135.97 (above our primary estimate by 144%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $119.91 (from 42 analysts). Our estimate is 53% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples