Stock Analysis on Net

Abbott Laboratories (NYSE:ABT) 

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Abbott Laboratories, FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net earnings 13,402 5,723 6,933 7,071 4,495
Net noncash charges 4,373 4,013 4,167 4,233 4,298
(Increase) decrease in operating capital (9,217) (2,475) (1,519) (771) (892)
Net cash from operating activities 8,558 7,261 9,581 10,533 7,901
Interest paid, net of tax1 477 569 470 468 497
Acquisitions of property and equipment (2,207) (2,202) (1,777) (1,885) (2,177)
Free cash flow to the firm (FCFF) 6,828 5,628 8,274 9,116 6,221

Based on: 10-K (reporting date: 2024-12-31), 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).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Abbott Laboratories suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Abbott Laboratories FCFF decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Interest Paid, Net of Tax

Abbott Laboratories, interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR1 21.00% 14.10% 16.50% 13.90% 9.50%
Interest Paid, Net of Tax
Interest paid, before tax 604 662 563 544 549
Less: Interest paid, tax2 127 93 93 76 52
Interest paid, net of tax 477 569 470 468 497

Based on: 10-K (reporting date: 2024-12-31), 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).

1 See details »

2 2024 Calculation
Interest paid, tax = Interest paid × EITR
= 604 × 21.00% = 127


Enterprise Value to FCFF Ratio, Current

Abbott Laboratories, current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 233,279
Free cash flow to the firm (FCFF) 6,828
Valuation Ratio
EV/FCFF 34.16
Benchmarks
EV/FCFF, Competitors1
Cigna Group 11.38
CVS Health Corp. 16.49
Elevance Health Inc. 17.29
Intuitive Surgical Inc. 131.54
Medtronic PLC 22.22
UnitedHealth Group Inc. 22.42
EV/FCFF, Sector
Health Care Equipment & Services 22.36
EV/FCFF, Industry
Health Care 23.08

Based on: 10-K (reporting date: 2024-12-31).

1 Click competitor name to see calculations.

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


Enterprise Value to FCFF Ratio, Historical

Abbott Laboratories, historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 240,390 205,452 192,330 213,980 229,787
Free cash flow to the firm (FCFF)2 6,828 5,628 8,274 9,116 6,221
Valuation Ratio
EV/FCFF3 35.21 36.51 23.24 23.47 36.94
Benchmarks
EV/FCFF, Competitors4
Cigna Group 10.77 10.44 13.38 14.17 9.16
CVS Health Corp. 15.91 11.96 10.00 10.30 9.42
Elevance Health Inc. 15.57 14.19 13.32 12.74 6.04
Intuitive Surgical Inc. 153.43 170.92 85.45 56.01 76.70
Medtronic PLC 20.58 26.54 20.32 33.84 21.43
UnitedHealth Group Inc. 20.57 17.59 19.30 22.21 15.82
EV/FCFF, Sector
Health Care Equipment & Services 21.76 18.86 17.40 19.23 15.32
EV/FCFF, Industry
Health Care 22.99 24.06 17.76 17.08 18.03

Based on: 10-K (reporting date: 2024-12-31), 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).

1 See details »

2 See details »

3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 240,390 ÷ 6,828 = 35.21

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Abbott Laboratories EV/FCFF ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.