Is AbbVie Inc. (ABBV) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Healthcare sector peers in our coverage

Insufficient Data TTM fundamentals · sector averages from covered peers

We don’t have enough peer data to compute a reliable sector comparison for ABBV right now.

ABBV has negative trailing-twelve-month earnings, so a P/E ratio isn't meaningful — we compare on price-to-sales instead.

The Numbers

P/E (TTM)

Sector avg: 27.7×

P/S (TTM)

Sector avg: 6.7×

Market Cap

$453.30B

EPS (TTM): —

Revenue (TTM)

Net income: —

Healthcare Peer Comparison

How ABBV's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
ABBV This page $256.48
LLY $1158.70 56.7×
JNJ $265.83 25.7×
MRK $147.86 19.5×
UNH $389.57 20.3×
PFE $28.47 16.6×

Is the Multiple Justified?

August 30, 2026

AbbVie's negative TTM earnings mean a P/E multiple is not applicable, and a P/S multiple is not provided. However, recent Q2 2026 results showed a return to profitability with net revenues up 10% year-over-year and adjusted diluted EPS increasing by 22.9%. The company is actively expanding its immunology portfolio through strategic acquisitions like Apogee Therapeutics, aiming to drive future growth. Conversely, a recent setback in its oncology pipeline with a late-stage trial failure introduces some uncertainty. The focus for investors will likely be on the sustained recovery of its core business and the successful integration and development of its pipeline assets to generate consistent positive earnings.

Frequently Asked Questions

Is ABBV overvalued or undervalued?
We don't have enough peer data to compute a sector comparison for ABBV right now.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing ABBV with its own Healthcare peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Healthcare names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

Keep Digging on ABBV

Same question, Healthcare peers