AbbVie Inc
🇺🇸 ABBV · NYSE/NASDAQ · US00287Y1091
Healthcare
USD 210.38 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
88.3
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: 210.38 ÷ 2.38 = 88.3
TTM period through: 2025-12-31
Forward P/E (estimated): 14.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 103.3
Yield (Fwd)
3.29%
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.
Trailing Yield (TTM): 3.23%
Div. Growth (5Y CAGR)
7.3%
Growth Streak
9 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
2.3x
Latest quarter: 13.4x
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: 2025-12-31
Latest quarter (2026-03-31): 13.4x
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).
Payout (Fwd)
290.5%
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 (TTM): 275.8%
Cash Flow Payout (TTM): 61.3%
FCF Coverage (TTM): 1.53x
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
47.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
AbbVie is a premier biopharmaceutical leader with a robust track record of dividend growth and successful pipeline execution offsetting legacy patent expirations. While a recent $3.5 billion non-cash accounting impairment has temporarily skewed trailing GAAP earnings, the underlying cash flows safely cover the 3.23% yield. Existing shareholders should maintain positions given the strong fundamentals, but current valuation multiples around 17.8x P/FFO suggest limited upside for new capital allocation.
Sector Context
AbbVie is a leading global biopharmaceutical company that discovers and markets advanced therapies, primarily in immunology, oncology, and neuroscience. In the healthcare sector, patent expirations present periodic revenue cliffs, making consistent pipeline execution, successful acquisitions, and strong cash flow generation critical for long-term dividend sustainability.
Temporary Opportunity Identified
TTM GAAP earnings and profitability metrics are temporarily depressed by a massive $3.5 billion non-cash intangible asset impairment charge and acquired IPR&D expenses, masking strong underlying cash generation.
📊 Strategy Analysis
- • Exceptional dividend history with 10 years of consecutive growth (7.3% 5-year CAGR) and strong free cash flow coverage at 1.53x.
- • Successful portfolio transition with robust underlying business performance, driven by growth in products like Skyrizi and Rinvoq offsetting legacy patent expirations.
- • Forward P/E of 14.14x suggests a much healthier valuation of true earnings power than distorted TTM metrics imply.
⚠ What to Watch
- • Current valuation leaves limited margin of safety for new capital, trading at a P/FFO of 17.80x which aligns with the 'full value' range for premium assets.
- • Headline TTM P/E of 88.31x is severely distorted by a $3.5 billion non-cash intangible asset impairment charge, opticalizing severe overvaluation.
- • The 3.23% dividend yield sits near the lower bound of the strategy's ideal 3-6% target range, offering less immediate income advantage.
📊 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: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.