ABBV — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($232.08)
DCF	$208.17	-10.3%
Graham Number	—	—
Reverse DCF	—	implied g: 11.6%
DDM	$138.84	-40.2%
EV/EBITDA	$232.10	+0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $18.34B

Near-term growth (yrs 1–5)(%)Rev: 10.0% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.76%

Computed WACC: 5.76%

Cost of equity (Re)6.14%(Rf 4.30% + β 0.33 × ERP 5.50%)

Cost of debt (Rd)4.41%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)85.71%

Debt weight (D/V)14.29%

Results

Intrinsic Value / share$467.34

Current Price$232.08

Upside / Downside+101.4%

Net Debt (used)$63.14B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	2.0%	6.0%	10.0%	14.0%	18.0%
7.0%	$217.12	$266.58	$323.79	$389.64	$465.09
8.0%	$170.10	$209.67	$255.39	$307.95	$368.11
9.0%	$137.62	$170.38	$208.17	$251.58	$301.22
10.0%	$113.86	$141.64	$173.67	$210.40	$252.38
11.0%	$95.73	$119.74	$147.37	$179.05	$215.20

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $2.37

Book Value / share($)Yahoo: $-1.85

Results

Graham Number requires positive EPS and positive Book Value per share. BVPS is zero or negative.

Graham Number—

Current Price$232.08

Margin of Safety—

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.76%

Terminal growth rate(%)

Computed WACC: 5.76%

Cost of equity (Re)6.14%(Rf 4.30% + β 0.33 × ERP 5.50%)

Cost of debt (Rd)4.41%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)85.71%

Debt weight (D/V)14.29%

Results

Current Price$232.08

Implied Near-term FCF Growth0.2%

Historical Revenue Growth10.0%

Historical Earnings Growth—

Base FCF (TTM)$18.34B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $6.74

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$138.84

Current Price$232.08

Upside / Downside-40.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $29.25B

Target EV/EBITDA multipleCurrent: 16.2×

Net Debt($B)Default: $63.14B

Results

Implied Equity Value / share$232.10

Current Price$232.08

Upside / Downside+0.0%

Implied EV$473.53B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$31.14B	$47.14B	$63.14B	$79.14B	$95.14B
12.2x	$184.02	$174.97	$165.92	$156.87	$147.82
14.2x	$217.11	$208.06	$199.01	$189.96	$180.91
16.2x	$250.20	$241.15	$232.10	$223.05	$214.00
18.2x	$283.29	$274.24	$265.19	$256.14	$247.09
20.2x	$316.38	$307.33	$298.28	$289.23	$280.18

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