Stock Analysis on Net
Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

AbbVie Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net earnings attributable to AbbVie Inc. 4,863 11,836 11,542 4,616 7,882
Net earnings attributable to noncontrolling interest 10 9 7 6 —
Net noncash charges 15,153 13,192 12,459 12,860 6,893
Changes in operating assets and liabilities, net of acquisitions 2,813 (94) (1,231) 106 (1,451)
Cash flows from operating activities 22,839 24,943 22,777 17,588 13,324
Acquisitions of property and equipment (777) (695) (787) (798) (552)
Net change in commercial paper borrowings — — — — (699)
Repayments of other short-term borrowings — — — — (3,000)
Proceeds from issuance of long-term debt — 2,000 1,000 3,000 31,482
Repayments of long-term debt and finance lease obligations (4,149) (14,433) (9,414) (5,683) (1,536)
Debt issuance costs (38) — — (20) (424)
Free cash flow to equity (FCFE) 17,875 11,815 13,576 14,087 38,595

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to AbbVie Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. AbbVie Inc. FCFE decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to FCFE Ratio, Current

AbbVie Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 1,767,140,323
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 17,875
FCFE per share 10.12
Current share price (P) 166.57
Valuation Ratio
P/FCFE 16.47
Benchmarks
P/FCFE, Competitors1
Amgen Inc. 4.56
Bristol-Myers Squibb Co. 9.01
Danaher Corp. 47.73
Eli Lilly & Co. 73.37
Gilead Sciences Inc. 15.29
Johnson & Johnson 23.74
Merck & Co. Inc. 18.32
Moderna Inc. —
Pfizer Inc. 3.49
Regeneron Pharmaceuticals Inc. 21.11
Thermo Fisher Scientific Inc. 28.39
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 16.08
P/FCFE, Industry
Health Care 16.45

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

AbbVie Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,766,473,359 1,769,399,971 1,768,753,829 1,765,881,690 1,479,156,683
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 17,875 11,815 13,576 14,087 38,595
FCFE per share3 10.12 6.68 7.68 7.98 26.09
Share price1, 4 175.75 151.31 144.03 105.01 94.96
Valuation Ratio
P/FCFE5 17.37 22.66 18.76 13.16 3.64
Benchmarks
P/FCFE, Competitors6
Amgen Inc. 4.71 8.32 13.52 11.06 33.32
Bristol-Myers Squibb Co. 7.52 22.85 16.17 7.80 5.80
Danaher Corp. 53.08 32.04 20.75 44.62 6.88
Eli Lilly & Co. 75.06 60.51 35.17 36.62 15.87
Gilead Sciences Inc. 12.81 15.22 12.70 5.98 15.91
Johnson & Johnson 24.31 16.73 23.28 15.60 23.06
Merck & Co. Inc. 24.48 22.40 18.72 17.85 18.08
Moderna Inc. — 12.24 4.62 31.68 —
Pfizer Inc. 3.82 10.56 8.88 — 9.87
Regeneron Pharmaceuticals Inc. 26.52 19.29 10.35 13.30 21.00
Thermo Fisher Scientific Inc. 31.16 27.98 13.44 18.58 46.04
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 17.23 19.02 15.27 17.30 11.46
P/FCFE, Industry
Health Care 16.99 18.08 16.76 17.08 13.39

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 17,875,000,000 ÷ 1,766,473,359 = 10.12

4 Closing price as at the filing date of AbbVie Inc. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 175.75 ÷ 10.12 = 17.37

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. AbbVie Inc. P/FCFE ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.