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: 28.7×

P/S (TTM)

—

Sector avg: 7.0×

Market Cap

$504.41B

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	$285.40	—	—	$504.41B
LLY Eli Lilly and Company	$1257.43	61.5×	18.9×	$1.13T
JNJ Johnson & Johnson	$255.56	24.7×	6.7×	$615.72B
UNH UnitedHealth Group Inc.	$401.49	20.9×	0.8×	$363.69B
MRK Merck & Co. Inc.	$145.95	19.3×	5.6×	$362.25B
PFE Pfizer Inc.	$29.57	17.2×	2.7×	$168.13B

Is the Multiple Justified?

October 4, 2026

AbbVie Inc. currently reports negative TTM earnings, rendering a P/E multiple inapplicable. However, the company's operational performance indicates a successful strategic transition. Its stock has gained 25.4% over the past six months, driven by strong growth from key immunology drugs Skyrizi and Rinvoq, which are effectively offsetting the revenue erosion from Humira's patent expiry. Combined sales for Skyrizi and Rinvoq are projected to exceed $31 billion in 2026, with over 20% growth. Additionally, the neuroscience portfolio is contributing significantly to growth. AbbVie reported a 12% year-over-year revenue increase in Q1 2026, beating estimates, and raised its full-year 2026 revenue guidance to approximately $67.3 billion. This strong growth trajectory and pipeline advancements are key factors influencing its valuation.

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

PFE UNH JNJ MRK LLY