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: 27.1×

P/S (TTM)

—

Sector avg: 6.5×

Market Cap

$449.94B

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)	P/S (TTM)	Market Cap
ABBV This page	$254.58	—	—	$449.94B
LLY Eli Lilly and Company	$1178.79	57.7×	17.8×	$1.06T
JNJ Johnson & Johnson	$253.02	24.4×	6.6×	$609.60B
UNH UnitedHealth Group Inc.	$426.15	22.2×	0.9×	$386.02B
MRK Merck & Co. Inc.	$127.48	16.8×	4.9×	$316.41B
PFE Pfizer Inc.	$25.05	14.6×	2.3×	$142.43B

Is the Multiple Justified?

July 12, 2026

AbbVie Inc. is noted with negative TTM earnings, rendering a P/E ratio inapplicable, while its P/S is also not provided. This situation often arises from specific accounting treatments, such as significant acquired in-process research and development (IPR&D) expenses, which can impact GAAP earnings. Despite the reported negative TTM earnings, AbbVie's underlying operational performance shows resilience. The company reported strong Q1 2026 adjusted EPS of $2.65, surpassing estimates, with revenue increasing 12.4% year-over-year to $15 billion. While sales of its legacy drug Humira are declining due to biosimilar competition, growth in newer immunology drugs like Skyrizi and Rinvoq, alongside a strong neuroscience portfolio, are driving revenue and adjusted earnings expansion. This indicates that the market may be looking beyond the GAAP earnings figure, focusing on the company's strategic pipeline and diversified growth drivers.

Sources

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.

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Same question, Healthcare peers

JNJ UNH MRK LLY PFE