Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Abbott Laboratories, current price multiples
| Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | Health Care Equipment & Services | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $108.49 | |||||||||
| No. shares of common stock outstanding | 1,737,682,887 | |||||||||
| Growth rate (g) | 7.84% | |||||||||
| Earnings per share (EPS) | $3.75 | |||||||||
| Next year expected EPS | $4.05 | |||||||||
| Operating profit per share | $4.63 | |||||||||
| Sales per share | $25.51 | |||||||||
| Book value per share (BVPS) | $30.00 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 28.90 | 11.50 | 59.40 | 24.02 | 21.41 | 24.98 | 26.57 | |||
| Price to next year expected earnings | 26.80 | 10.28 | 52.09 | 23.65 | 19.07 | 22.79 | 24.20 | |||
| Price-earnings-growth (PEG) | 3.69 | 0.97 | 4.23 | 15.35 | 1.75 | 2.60 | 2.72 | |||
| Price to operating profit (P/OP) | 23.41 | 9.91 | 57.60 | 18.80 | 13.61 | 18.67 | 20.76 | |||
| Price to sales (P/S) | 4.25 | 0.33 | 16.86 | 3.34 | 0.58 | 1.09 | 3.13 | |||
| Price to book value (P/BV) | 3.62 | 1.48 | 9.52 | 2.33 | 2.74 | 3.10 | 5.71 | |||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Abbott Laboratories, historical price multiples
Based on: 10-K (reporting date: 2025-12-31), 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).
The valuation ratios exhibit varied trends over the five-year period. Generally, the ratios demonstrate fluctuation, suggesting shifts in investor sentiment and market conditions impacting the company’s perceived value. A notable divergence in trends is observed between the Price to Earnings (P/E) ratio and the Price to Book Value (P/BV) ratio.
- Price to Earnings (P/E) Ratio
- The P/E ratio decreased from 29.13 in 2021 to 26.76 in 2022, then increased to 34.57 in 2023. A significant decline occurred in 2024, falling to 17.46, before recovering to 29.89 in 2025. This pattern indicates considerable volatility in earnings relative to the stock price, potentially reflecting changes in profitability or investor expectations regarding future earnings growth.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio followed a generally increasing trend from 2021 to 2023, moving from 24.45 to 30.54. A peak was reached in 2024 at 34.28, followed by a decrease to 24.21 in 2025. This suggests that the market valuation of the company’s operating profitability experienced a period of expansion followed by a contraction.
- Price to Sales (P/S) Ratio
- The P/S ratio showed moderate fluctuation. It decreased from 4.78 in 2021 to 4.25 in 2022, increased to 4.93 in 2023, rose further to 5.58 in 2024, and then decreased to 4.40 in 2025. This indicates a relatively stable relationship between market capitalization and revenue, with some variation potentially linked to revenue growth expectations.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio decreased consistently from 5.75 in 2021 to 3.74 in 2025. This downward trend suggests a declining premium that the market places on the company’s net asset value, potentially indicating concerns about asset utilization or future returns on equity. The decrease is relatively steady, suggesting a consistent reassessment of the company’s intrinsic value based on its book value.
Overall, the observed trends suggest a period of dynamic valuation. The significant changes in the P/E and P/OP ratios, coupled with the consistent decline in the P/BV ratio, warrant further investigation into the underlying drivers of these movements.
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Price to Earnings (P/E)
Abbott Laboratories, historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,737,682,887 | 1,734,323,411 | 1,735,184,289 | 1,737,946,233 | 1,763,482,267 | |
| Selected Financial Data (US$) | ||||||
| Net earnings (in millions) | 6,524) | 13,402) | 5,723) | 6,933) | 7,071) | |
| Earnings per share (EPS)2 | 3.75 | 7.73 | 3.30 | 3.99 | 4.01 | |
| Share price1, 3 | 112.21 | 134.92 | 114.01 | 106.74 | 116.79 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 29.89 | 17.46 | 34.57 | 26.76 | 29.13 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Elevance Health Inc. | 13.21 | 14.85 | 19.80 | 19.20 | 18.13 | |
| Intuitive Surgical Inc. | 59.55 | 87.82 | 74.11 | 64.99 | 59.94 | |
| Medtronic PLC | 23.73 | 27.97 | 30.94 | 23.38 | 46.56 | |
| UnitedHealth Group Inc. | 22.20 | 29.75 | 20.53 | 22.46 | 26.03 | |
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | 25.76 | 26.60 | 25.86 | 24.26 | 28.98 | |
| P/E Ratio, Industry | ||||||
| Health Care | 28.31 | 38.03 | 30.62 | 21.22 | 21.55 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 6,524,000,000 ÷ 1,737,682,887 = 3.75
3 Closing price as at the filing date of Abbott Laboratories Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 112.21 ÷ 3.75 = 29.89
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited fluctuations over the five-year period. Initial values decreased, followed by an increase, and then a substantial decline before stabilizing. This movement correlates with changes in both share price and earnings per share.
- Share Price
- The share price decreased from US$116.79 in 2021 to US$106.74 in 2022, representing a decline. A subsequent recovery was observed in 2023, reaching US$114.01, before a significant increase to US$134.92 in 2024. The share price then decreased to US$112.21 in 2025.
- Earnings Per Share (EPS)
- Earnings per share remained relatively stable between 2021 and 2022, at US$4.01 and US$3.99 respectively. A decrease was noted in 2023, with EPS falling to US$3.30. A substantial increase occurred in 2024, with EPS reaching US$7.73, followed by a decline to US$3.75 in 2025.
- Price to Earnings (P/E) Ratio
- The P/E ratio began at 29.13 in 2021 and decreased to 26.76 in 2022. It then increased to 34.57 in 2023. A significant decrease was observed in 2024, with the P/E ratio falling to 17.46. The ratio increased again in 2025, reaching 29.89. The fluctuations in the P/E ratio largely reflect the combined effect of the share price and EPS movements. The substantial decrease in 2024 is primarily attributable to the significant increase in EPS, while the increase in 2023 is due to a combination of a slight increase in share price and a decrease in EPS.
The interplay between share price and EPS demonstrates a dynamic valuation. The P/E ratio’s movement suggests changing investor sentiment and expectations regarding future earnings potential.
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Price to Operating Profit (P/OP)
Abbott Laboratories, historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,737,682,887 | 1,734,323,411 | 1,735,184,289 | 1,737,946,233 | 1,763,482,267 | |
| Selected Financial Data (US$) | ||||||
| Operating earnings (in millions) | 8,053) | 6,825) | 6,478) | 8,362) | 8,425) | |
| Operating profit per share2 | 4.63 | 3.94 | 3.73 | 4.81 | 4.78 | |
| Share price1, 3 | 112.21 | 134.92 | 114.01 | 106.74 | 116.79 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 24.21 | 34.28 | 30.54 | 22.18 | 24.45 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Elevance Health Inc. | 11.39 | 12.19 | 15.57 | 15.05 | 15.70 | |
| Intuitive Surgical Inc. | 57.74 | 86.83 | 75.42 | 54.49 | 56.11 | |
| Medtronic PLC | 18.58 | 19.98 | 21.20 | 20.48 | 37.44 | |
| UnitedHealth Group Inc. | 14.12 | 13.27 | 14.20 | 15.89 | 18.77 | |
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | 19.26 | 19.64 | 19.09 | 18.47 | 22.66 | |
| P/OP Ratio, Industry | ||||||
| Health Care | 22.12 | 26.90 | 27.48 | 16.58 | 18.20 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 8,053,000,000 ÷ 1,737,682,887 = 4.63
3 Closing price as at the filing date of Abbott Laboratories Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 112.21 ÷ 4.63 = 24.21
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased, then increased significantly, followed by a subsequent decline.
- Overall Trend
- The P/OP ratio began at 24.45 in 2021, decreased to 22.18 in 2022, and then rose substantially to 30.54 in 2023. This upward movement continued into 2024, reaching 34.28, before decreasing to 24.21 in 2025. This suggests periods of both increased and decreased investor valuation of each dollar of operating profit.
- Year-over-Year Changes
- From 2021 to 2022, the P/OP ratio experienced a decrease of approximately 2.27. The most significant increase occurred between 2022 and 2023, with a rise of 8.36. A further increase of 3.74 was observed from 2023 to 2024. Finally, a decrease of 10.07 occurred between 2024 and 2025.
- Relationship to Operating Profit per Share
- The fluctuations in the P/OP ratio do not appear to directly correlate with the trend in operating profit per share. While operating profit per share generally decreased from 2021 to 2023, the P/OP ratio increased. Operating profit per share then increased in both 2024 and 2025, while the P/OP ratio increased in 2024 but decreased in 2025. This suggests factors beyond operating profit per share, such as market sentiment or broader economic conditions, are influencing the valuation.
The highest P/OP ratio was recorded in 2024 at 34.28, indicating the highest valuation relative to operating profit during the observed period. The lowest ratio was observed in 2022 at 22.18.
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Price to Sales (P/S)
Abbott Laboratories, historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,737,682,887 | 1,734,323,411 | 1,735,184,289 | 1,737,946,233 | 1,763,482,267 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 44,328) | 41,950) | 40,109) | 43,653) | 43,075) | |
| Sales per share2 | 25.51 | 24.19 | 23.12 | 25.12 | 24.43 | |
| Share price1, 3 | 112.21 | 134.92 | 114.01 | 106.74 | 116.79 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 4.40 | 5.58 | 4.93 | 4.25 | 4.78 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Elevance Health Inc. | 0.38 | 0.51 | 0.70 | 0.74 | 0.81 | |
| Intuitive Surgical Inc. | 16.90 | 24.42 | 18.71 | 13.81 | 17.89 | |
| Medtronic PLC | 3.30 | 3.18 | 3.72 | 3.72 | 5.57 | |
| UnitedHealth Group Inc. | 0.60 | 1.08 | 1.25 | 1.40 | 1.58 | |
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.12 | 1.62 | 1.66 | 1.71 | 2.07 | |
| P/S Ratio, Industry | ||||||
| Health Care | 3.34 | 3.36 | 3.52 | 3.11 | 3.28 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 44,328,000,000 ÷ 1,737,682,887 = 25.51
3 Closing price as at the filing date of Abbott Laboratories Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 112.21 ÷ 25.51 = 4.40
5 Click competitor name to see calculations.
The price to sales ratio exhibited fluctuations over the five-year period. Initial observations indicate a decrease followed by an increase, and then a subsequent decline.
- Price to Sales Ratio - Overall Trend
- The price to sales ratio began at 4.78 in 2021, decreased to 4.25 in 2022, and then increased to 4.93 in 2023. A peak was reached in 2024 at 5.58 before declining to 4.40 in 2025. This suggests a period of increasing valuation relative to sales, followed by a recent contraction.
- Price to Sales Ratio - 2021-2022
- From 2021 to 2022, the price to sales ratio experienced a decrease of approximately 10.6%. This decline occurred alongside a slight increase in sales per share, indicating that the market was valuing each dollar of sales at a lower multiple during this period.
- Price to Sales Ratio - 2022-2024
- Between 2022 and 2024, the price to sales ratio increased by 30.8%. This rise coincided with fluctuations in sales per share, suggesting a strengthening of investor confidence in the company’s ability to generate sales. The 2024 value represents the highest ratio observed within the analyzed timeframe.
- Price to Sales Ratio - 2024-2025
- The most recent period, from 2024 to 2025, saw a decrease in the price to sales ratio of 20.8%. This decrease occurred while sales per share also increased, suggesting a potential shift in market sentiment or a reassessment of the company’s growth prospects.
The observed volatility in the price to sales ratio warrants further investigation into the underlying factors driving these changes, including broader market conditions and company-specific performance metrics.
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Price to Book Value (P/BV)
Abbott Laboratories, historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,737,682,887 | 1,734,323,411 | 1,735,184,289 | 1,737,946,233 | 1,763,482,267 | |
| Selected Financial Data (US$) | ||||||
| Total Abbott shareholders’ investment (in millions) | 52,130) | 47,664) | 38,603) | 36,686) | 35,802) | |
| Book value per share (BVPS)2 | 30.00 | 27.48 | 22.25 | 21.11 | 20.30 | |
| Share price1, 3 | 112.21 | 134.92 | 114.01 | 106.74 | 116.79 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 3.74 | 4.91 | 5.12 | 5.06 | 5.75 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Elevance Health Inc. | 1.70 | 2.15 | 3.02 | 3.19 | 3.07 | |
| Intuitive Surgical Inc. | 9.54 | 12.41 | 10.01 | 7.78 | 8.59 | |
| Medtronic PLC | 2.30 | 2.05 | 2.26 | 2.24 | 3.26 | |
| UnitedHealth Group Inc. | 2.84 | 4.63 | 5.18 | 5.81 | 6.27 | |
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | 3.20 | 4.26 | 4.43 | 4.46 | 5.01 | |
| P/BV Ratio, Industry | ||||||
| Health Care | 6.08 | 5.99 | 5.94 | 5.26 | 5.48 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Total Abbott shareholders’ investment ÷ No. shares of common stock outstanding
= 52,130,000,000 ÷ 1,737,682,887 = 30.00
3 Closing price as at the filing date of Abbott Laboratories Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 112.21 ÷ 30.00 = 3.74
5 Click competitor name to see calculations.
The price to book value ratio exhibited a generally decreasing trend over the five-year period. Initial values indicated a relatively high valuation based on book value, which subsequently moderated. Fluctuations were observed, but the overall trajectory suggests a shift in how the market values the company relative to its net asset value.
- Price to Book Value (P/BV) Trend
- In 2021, the P/BV ratio stood at 5.75. This decreased to 5.06 in 2022, representing a decline of approximately 12%. A slight increase was noted in 2023, with the ratio reaching 5.12. However, this was followed by a further decrease to 4.91 in 2024. The most substantial decline occurred between 2024 and 2025, with the P/BV ratio falling to 3.74, a reduction of approximately 24% from the prior year.
The share price demonstrated volatility during the observed period. While it decreased from US$116.79 in 2021 to US$106.74 in 2022, it recovered to US$114.01 in 2023 before experiencing a significant increase to US$134.92 in 2024. A subsequent decline to US$112.21 was recorded in 2025.
- Book Value Per Share (BVPS) Trend
- Book value per share consistently increased throughout the period, rising from US$20.30 in 2021 to US$30.00 in 2025. This represents a cumulative increase of approximately 48% over the five years. The increases were relatively steady, with annual increments ranging from US$0.81 to US$2.53.
The decreasing P/BV ratio, coupled with the increasing book value per share, suggests that the market’s valuation of the company’s net assets has become more conservative over time. The substantial drop in the P/BV ratio in 2025 warrants further investigation to determine the underlying causes, potentially including changes in market sentiment, industry conditions, or company-specific factors.
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