AbbVie Inc. (ABBV) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Healthcare · Drug Manufacturers - General
Is AbbVie Inc. a safe investment right now?
AbbVie Inc.'s Altman Z-Score of 2.14 places it in the gray zone. Our fair value estimate is $229.20 (Watch Zone). Moat rating: 3.4/5 stars.
Could AbbVie Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 2.14 places the company in the gray zone (1.8-3.0), warranting closer scrutiny.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives ABBV's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.1062 | 1.2 | -0.13 |
| B · Retained Earnings / Total Assets | RE / TA | -0.1157 | 1.4 | -0.16 |
| C · EBIT / Total Assets | EBIT / TA | 0.0708 | 3.3 | 0.23 |
| D · Market Cap / Total Liabilities | MCap / TL | 2.8969 | 0.6 | 1.74 |
| E · Revenue / Total Assets | Rev / TA | 0.4566 | 1.0 | 0.46 |
How has ABBV's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 2.79 | Gray |
| 2023 | 2.48 | Gray |
| 2024 | 2.19 | Gray |
| 2025 | 2.14 | Gray |
Source: Calculated from ABBV's latest 10-K filing on SEC EDGAR.
What is AbbVie Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $5.73 | Proprietary blend of reported actuals (1Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $2.37 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $14.24 | 29 analysts consensus |
| Trailing P/E | 110.3x | Current market pricing |
| Fair P/E (β discount) | 40.0x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $252.90 (29 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does AbbVie Inc. have a durable competitive advantage?
Moat rating: 3.4/5.
What makes up ABBV's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is ABBV's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 19.5% | — |
| 2023 | 12.2% | Declining |
| 2024 | 9.3% | Declining |
| 2025 | 14.8% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is AbbVie Inc.'s dividend safe?
Can AbbVie Inc. afford its dividend?
Payout ratio is 326.0%. FCF covers the dividend 2.4x. 14 consecutive years of payments.
US dividend withholding tax of 30% applies to non-US tax residents. This rate may be reduced under a tax treaty between the US and your country of residence. The adjusted yield shown assumes the default 30% rate. For informational purposes only — consult a qualified tax advisor.
AbbVie Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $61.2B | $56.3B | $58.1B | Rising |
| Net Income | $4.2B | $4.3B | $11.8B | Declining |
| Free Cash Flow | $17.8B | $17.8B | $24.2B | Declining |
| Gross Margin | 70.2% | 70.0% | 70.0% | Stable |
Recent events that affect our ABBV analysis
ABBV earnings report scheduled
Upcoming report. Consensus EPS estimate: $3.77. Revenue estimate: $16.76B. Our current Fair Value: $229.20 — a significant beat or miss could shift this estimate.
ABBV analyst consensus: 75% bullish (24 of 32 analysts)
8 Strong Buy, 16 Buy, 8 Hold, 0 Sell, 0 Strong Sell. Consensus target: $252.90 (12.4% upside). Compare with our independent Fair Value: $229.20.
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ABBV missed EPS estimates by 0.8%
Reported EPS: $2.65 vs estimate $2.67. Our Fair Value of $229.20 may face downward pressure if the trend continues.
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV paid $1.7300/share dividend
Dividend Safety Grade: B. Payout ratio: 326.0%.
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
ABBV beat EPS estimates by 2.2%
Reported EPS: $2.71 vs estimate $2.65. Earnings strength supports our Fair Value of $229.20 (1.9% above current price).
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV paid $1.7300/share dividend
Dividend Safety Grade: B. Payout ratio: 326.0%.
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ABBV beat EPS estimates by 4.2%
Reported EPS: $1.86 vs estimate $1.78. Earnings strength supports our Fair Value of $229.20 (1.9% above current price).
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV paid $1.6400/share dividend
Dividend Safety Grade: B. Payout ratio: 326.0%.
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ABBV missed EPS estimates by 55.6%
Reported EPS: $0.52 vs estimate $1.17. Our Fair Value of $229.20 may face downward pressure if the trend continues.
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV paid $1.6400/share dividend
Dividend Safety Grade: B. Payout ratio: 326.0%.
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ABBV beat EPS estimates by 2.6%
Reported EPS: $2.46 vs estimate $2.40. Earnings strength supports our Fair Value of $229.20 (1.9% above current price).
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV paid $1.6400/share dividend
Dividend Safety Grade: B. Payout ratio: 326.0%.
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV beat EPS estimates by 1.9%
Reported EPS: $2.16 vs estimate $2.12. Earnings strength supports our Fair Value of $229.20 (1.9% above current price).
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV paid $1.6400/share dividend
Dividend Safety Grade: B. Payout ratio: 326.0%.
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ABBV filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about AbbVie Inc.
What is AbbVie Inc. stock price today?
AbbVie Inc. (ABBV) stock price is $224.94 as of the latest market close, traded on the NYSE exchange.
What does AbbVie Inc. do?
AbbVie Inc., a research-based biopharmaceutical company, engages in the research and development, manufacturing, commercializing, and sale of medicines and therapies worldwide. It offers Skyrizi to treat autoimmune diseases; Rinvoq to treat inflammatory diseases; Imbruvica for the treatment of adult patients with blood cancers; Venclexta to treat blood cancers; Elahere to treat various cancer; and Epkinly to treat lymphoma; and Emrelis for the treatment of lung cancer. It also provides facial injectables, plastics and regenerative medicine, body contouring, and skincare products; botox Cosmetic for the treatment of glabellar lines, crow's feet, forehead lines, and platysma bands; Juvederm Collection to treat volume loss in the temples, undereye, cheeks, chin, lips and lower face; Vraylar to treat schizophrenia, bipolar disorder, and depressive disorder; Duodopa to treat Parkinson's disease; Ubrelvy to treat migraine; Qulipta for episodic and chronic migraine; and Vyalev for the treatment of motor fluctuations, as well as Botox Therapeutic to treat chronic migraine, overactive bladder, spasticity, cervical dystonia, and other conditions.
What is AbbVie Inc. market cap?
AbbVie Inc. has a market capitalization of $397.42B, classifying it as a mega-cap stock in the Healthcare sector.
What sector and industry is ABBV in?
AbbVie Inc. operates in the Healthcare sector, specifically within the Drug Manufacturers - General industry. It trades on the NYSE under the ticker symbol ABBV.
Is ABBV stock overvalued or undervalued?
Based on our valuation model, AbbVie Inc. trades 1.9% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $229.20
- Current Price: $224.94
- Valuation Zone: Watch Zone
What is ABBV stock forecast and analyst target price?
Based on 29 Wall Street analysts, the consensus price target for AbbVie Inc. is $252.90, implying upside of 12.4% from the current price.
- Analyst High Target: $328.00
- Analyst Low Target: $184.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is AbbVie Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for AbbVie Inc.:
- Revenue growth (current year est.): 9.9%
- EPS growth (current year est.): 42.4%
- Revenue growth (next year est.): 8.1%
- EPS growth (next year est.): 14.0%
What are AbbVie Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $61.2B | Rising |
| Net Income | $4.2B | Declining |
| Free Cash Flow | $17.8B | Declining |
| Gross Margin | 70.2% | Stable |
What is ABBV's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 110.3x
- Forward P/E (next 12 months est.): 13.8x
- FairValueLabs Fair P/E: 40.0x
How volatile is ABBV stock?
AbbVie Inc. has a beta of 0.30, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does AbbVie Inc. have?
AbbVie Inc.'s balance sheet shows:
- Total Cash: $9.39B
- Total Debt: $72.91B
- Net Cash Position: $-63.52B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is AbbVie Inc.'s free cash flow?
AbbVie Inc. generated $20.81B in trailing twelve-month free cash flow (from $21.22B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does AbbVie Inc. pay a dividend, and is it safe?
Yes, AbbVie Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 3.1%
- Payout Ratio: 326.0%
- Consecutive Years Paid: 14
- 5-Year Dividend Growth: -7.8%
- FairValueLabs Safety Grade: B
Is AbbVie Inc. at risk of going bankrupt?
AbbVie Inc.'s Altman Z-Score is 2.14, placing it in the gray zone (1.8–3.0) — some financial uncertainty. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does AbbVie Inc. have a durable competitive advantage?
AbbVie Inc. scores 3.4/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
How do I buy ABBV stock?
ABBV shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol ABBV
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is ABBV a value stock or speculative?
FairValueLabs classifies AbbVie Inc. as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of AbbVie Inc.?
The current CEO of AbbVie Inc. is Mr. Robert A. Michael CPA.
What is ABBV's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $2.04
- Forward EPS (next 12 months est.): $16.26
- Analyst consensus EPS (this year): $14.24
- Analyst consensus EPS (next year): $16.23
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Jun 3, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
ABBV analysis methodology: How we calculate fair value, Z-Scores, and moat ratings