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General information
AbbVie Inc. researches and develops pharmaceutical products. The Company produces pharmaceutical drugs for specialty therapeutic areas such as immunology, chronic kidney disease, hepatitis C, women"s health, oncology, and neuroscience. AbbVie also offers treatments for diseases including multiple sclerosis, parkinson"s, and alzheimer"s disease.
  • Bad financial results growth rate -20.2% (average between last period year over year growth for revenue and EBITDA), there is slowdown compared to average historical growth rates (6.0%)
  • Dividend yield for the last twelve months 5.9%
  • Free cash flow yield 10.0% (LTM)
  • Share price is 27.8% higher than minimum and 34.7% lower than maximum for the last 3 years
  • The company is undervalued by EV / LTM EBITDA multiple compared to target level (11.0x vs 17.0x)
  • Fundamental value created in LTM (estimate) -225.0%
Key Financials
Ticker: ABBV
Share price, USD: 80.49
Common stocks: 1 478 821 109

Dividend Yield:  5.9%
FCF Yield LTM: 10.0%
EV / LTM EBITDA: 11.0x
Last revenue growth (y/y):  26.3%
Last growth of EBITDA (y/y):  -66.7%
Historical revenue growth:  10.9%
Historical growth of EBITDA:  1.1%
Target EV / EBITDA (hist 75% percentile): 17.0x
Fundamental value created in LTM: -100.0%
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 119 030
Net Debt ($m): 25 904
EV (Enterprise Value): 144 934
EBITDA LTM ($m): 13 118
EV / LTM EBITDA: 11.0x

Revenue and EBITDA

Quarterly values ($m)

Change (y/y)

Cash Flow

Free Cash Flow ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends

Share price

Payment USD per share

Multiple and potential

EV / LTM EBITDA and 75% percentile

Potential dynamics

Value Creation

Fundamental Value Creation is calculated as ratio of value created in the last period to current market cap of the company.

The fundamental value can be created in two ways:
• cash generation in form of dividend payments or debt reduction or share buybacks
growth of the company enterprise value through improving financial results

The growth of enterprise value in the last period is estimated as product of:
• annualized increase of EBITDA in the last reporting period year over year
• relevant EV/EBITDA multiple (average between actual EV/EBITDA for the company and average general level of 10.0x is applied)

Parameter
#
Formula
Value
    
    
            EBITDA (pre LTM Q)
(1)
3 934
            EBITDA (last Q)
(2)
1 311
            EBITDA LTM
(3)
13 118
    
    
        EBITDA LTM / last Q
(4)
(3) / (2)
10.006
    Gain of EBITDA (mln $)
(5)
( (2)-(1) ) * (4)
-26 246
    
    
            EV
(6)
148 424
        Mult
(7)
(6) / (3)
11.3x
        Mult common
(8)
const
10.0x
    Mult avg
(9)
avgerage
10.7x
    
    
    Equity+
(10)
(5) * (9)
-279 711
    FCF LTM
(11)
11 924
    
    
Value+
(12)
(10) + (11)
-267 787
Cap
(13)
119 030
    
    
Fundamental value creation
(14)
(12) / (13)
-100.0%

Potential

EBITDA LTM       13 118
 
EBITDA E       10 325
Mult aim       17.0x
 
EV E       175 787
NetDebt corr       25 441
 
Cap E       150 346
Cap       119 030
Growth potential            26.3%