Using the industry peer median P/E multiple (trailing + forward), Abbott Laboratories (ABT) has a fair value of $102.41 based on 9 comparable companies in the Medical - Devices industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Abbott LaboratoriesABT | 183,706 | 28.3x | 18.5x |
| Merck & Co., Inc.MRK | 294,783 | 16.4x | 23.3x |
| UnitedHealth Group IncorporatedUNH | 243,334 | 20.3x | 15.0x |
| Thermo Fisher Scientific Inc.TMO | 182,666 | 27.7x | 20.0x |
| Gilead Sciences, Inc.GILD | 170,903 | 20.3x | 15.9x |
| Intuitive Surgical, Inc.ISRG | 167,426 | 59.9x | 46.9x |
| Novo Nordisk A/SNVO | 161,919 | 10.9x | 12.1x |
| Stryker CorporationSYK | 127,271 | 39.6x | 22.2x |
| Medtronic plcMDT | 113,213 | 24.4x | 15.6x |
| Boston Scientific CorporationBSX | 105,082 | 36.5x | 20.4x |
| Industry Median | 24.4x | 20.0x | |
| (*) Profit after tax | 6,524 | 9,914 | |
| Equity Value | 159,359 | 198,451 | |
| (/) Outstanding shares | 1,747 | 1,747 | |
| Fair Price | $91 | $114 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.