Abbott Laboratories logo ABT - Abbott Laboratories

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 31
HOLD 10
SELL 0
STRONG
SELL
0
| PRICE TARGET: $127.46 DETAILS
HIGH: $152.00
LOW: $92.00
MEDIAN: $125.00
CONSENSUS: $127.46
UPSIDE: 45.82%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 80% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Mild
Trading 9.4% above fair value
Current Price $87.41
Bear Case $63.89 26.9% downside ($63.89 - $87.41) / $87.41 = -26.9% $3.96 × 12x P/E
Fair Value $79.87 8.6% downside ($79.87 - $87.41) / $87.41 = -8.6% $3.96 × 15x P/E
Bull Case $95.84 9.6% upside ($95.84 - $87.41) / $87.41 = 9.6% $3.96 × 18x P/E

Adjust Assumptions

15.0x
3.96$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 22.0x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $127.46 from 41 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $79.87 per share.

Warnings

Dividend-based valuation: $117.72 (above our primary estimate by 98%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $127.46 (from 41 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