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AbbVie Inc
🇺🇸 ABBV · NYSE/NASDAQ
Healthcare
Price at analysis: USD 284.41 Current price: USD 282.57 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
79.8
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 284.41 ÷ 3.56 = 79.8
TTM period through: 2026-06-30
Forward P/E (estimated): 16.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 77.4
Net Debt/EBITDA (TTM)
3.0x
Latest quarter: 7.5x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-06-30
Latest quarter (2026-06-30): 7.5x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
62.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
27.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
3.11%
TTM: 2.42%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 3.11%
Trailing Yield (TTM, last 12 months): 2.42%
Payout Ratio (Fwd)
194.2%
TTM: 275.8%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 194.2%
Payout (TTM): 275.8%
Cash Flow Payout (TTM): 61.4%
FCF Coverage (TTM): 1.52x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
6.8%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 15 Oct 2027 | — | USD | 1.73 |
| Forecast* | Quarterly | — | 15 Jul 2027 | — | USD | 1.73 |
| Forecast* | Quarterly | — | 15 Apr 2027 | — | USD | 1.73 |
| Forecast* | Quarterly | — | 16 Jan 2027 | — | USD | 1.73 |
| Declared | Quarterly | 10 Sep 2026 | 15 Oct 2026 | 16 Nov 2026 | USD | 1.73 |
| Paid | Quarterly | 18 Jun 2026 | 15 Jul 2026 | 14 Aug 2026 | USD | 1.73 |
| Paid | Quarterly | 19 Feb 2026 | 15 Apr 2026 | 15 May 2026 | USD | 1.73 |
| Paid | Quarterly | 31 Oct 2025 | 16 Jan 2026 | 17 Feb 2026 | USD | 1.73 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
AbbVie continues to be a premier biopharmaceutical leader, effectively utilizing its strong free cash flow to fund a growing dividend and offset legacy Humira revenue erosion. However, with the stock fully valued at a 16.39x forward P/E and offering a forward yield of just 2.43%, existing holders should maintain their positions while new buyers wait for a more attractive entry point.
Sector Context
AbbVie is a leading biopharmaceutical company in the Healthcare sector. While healthcare is technically a non-essential sector under DGI rules (incurring a minor strategy fit penalty), AbbVie's massive, insulated cash flows and aggressive patent strategies provide utility-like visibility, albeit with cyclical patent cliff risks.
Temporary Opportunity Identified
The elevated TTM P/E of 79.83x and recent quarterly net loss are heavily distorted by a one-time $3.5 billion non-cash intangible asset impairment charge related to the Cerevel acquisition, masking strong underlying revenue growth.
📊 Strategy Analysis
- • Robust cash generation with a 61.40% cash flow payout ratio and 1.52x FCF dividend coverage, securely supporting the 2.42% TTM yield.
- • Underlying business performance remains strong, with the recent Q4 net loss entirely attributable to a temporary $3.5 billion non-cash impairment charge.
- • Long-term revenue streams are protected by strategic tailwinds, including a generic settlement that protects Rinvoq exclusivity until 2037 and an aesthetics portfolio (Botox/Juvederm) structurally insulated from Medicare Part D redesigns.
⚠ What to Watch
- • The 2.43% forward dividend yield is well below the company's historical average, offering limited income generation for new capital.
- • Significant structural headwinds persist, including the impending 2027 patent cliff for Imbruvica and ongoing Medicare IRA price negotiations affecting key products.
- • Valuation leaves little margin of safety, with a forward P/E of 16.39x, an elevated Net Debt/EBITDA of 3.03x, and a stock price fully reflecting the company's immunology growth.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.