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General information
Abbott Laboratories discovers, develops, manufactures, and sells a broad and diversified line of health care products and services. The Company"s products include pharmaceuticals, nutritional, diagnostics, and vascular products. Abbott markets its products worldwide through affiliates and distributors.
  • Good financial results growth rate 11.9% (average between last period year over year growth for revenue and EBITDA), there is slowdown compared to average historical growth rates (18.6%)
  • Dividend yield for the last twelve months 1.4%
  • Free cash flow yield 1.8% (LTM)
  • Share price is 97.1% higher than minimum and 4.4% lower than maximum for the last 3 years
  • The company is overvalued by EV / LTM EBITDA multiple compared to target level (26.6x vs 24.4x)
  • Fundamental value created in LTM (estimate) 11.1%
Key Financials
Ticker: ABT
Share price, USD: 106.42
Common stocks: 1 768 455 705
Dividend Yield:  1.4%
FCF Yield LTM: 1.8%
EV / LTM EBITDA: 26.6x
Last revenue growth (y/y):  9.6%
Last growth of EBITDA (y/y):  14.2%
Historical revenue growth:  9.3%
Historical growth of EBITDA:  27.8%
Target EV / EBITDA (hist 75% percentile): 24.4x
Express share price potential: -7.7%
Fundamental value created in LTM: 11.1%
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 188 199
Net Debt ($m): 14 814
EV (Enterprise Value): 203 013
EBITDA LTM ($m): 7 632
EV / LTM EBITDA: 26.6x

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)
2 031
            EBITDA (last Q)
(2)
2 320
            EBITDA LTM
(3)
7 632
    
    
        EBITDA LTM / last Q
(4)
(3) / (2)
3.290
    Gain of EBITDA (mln $)
(5)
( (2)-(1) ) * (4)
951
    
    
            EV
(6)
203 650
        Mult
(7)
(6) / (3)
26.7x
        Mult common
(8)
const
10.0x
    Mult avg
(9)
avgerage
18.3x
    
    
    Equity+
(10)
(5) * (9)
17 438
    FCF LTM
(11)
3 441
    
    
Value+
(12)
(10) + (11)
20 879
Cap
(13)
188 199
    
    
Fundamental value creation
(14)
(12) / (13)
11.1%

Potential

EBITDA LTM       7 632
 
EBITDA E       7 733
Mult aim       24.4x
 
EV E       188 949
NetDebt corr       15 177
 
Cap E       173 772
Cap       188 199
Growth potential            -7.7%