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 | CVS Health Corp. | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | Health Care Equipment & Services | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | $136.26 | ||||||||||
| No. shares of common stock outstanding | 1,739,836,465 | ||||||||||
| Growth rate (g) | 9.93% | ||||||||||
| Earnings per share (EPS) | $7.70 | ||||||||||
| Next year expected EPS | $8.47 | ||||||||||
| Operating profit per share | $3.92 | ||||||||||
| Sales per share | $24.11 | ||||||||||
| Book value per share (BVPS) | $27.40 | ||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | 17.69 | 19.08 | 14.95 | 83.02 | 24.39 | 20.54 | 22.90 | 34.00 | |||
| Price to next year expected earnings | 16.09 | 18.26 | 13.34 | 73.46 | 24.02 | 17.86 | 20.99 | 31.39 | |||
| Price-earnings-growth (PEG) | 1.78 | 4.28 | 1.24 | 6.38 | 15.59 | 1.37 | 2.51 | 4.08 | |||
| Price to operating profit (P/OP) | 34.74 | 10.34 | 12.28 | 82.09 | 19.10 | 9.16 | 16.30 | 23.75 | |||
| Price to sales (P/S) | 5.65 | 0.24 | 0.51 | 23.09 | 3.39 | 0.75 | 0.99 | 2.39 | |||
| Price to book value (P/BV) | 4.97 | 1.16 | 2.16 | 11.73 | 2.37 | 3.19 | 3.14 | 5.01 | |||
Based on: 10-K (reporting date: 2024-12-31).
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: 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).
The financial ratios show varying trends across the periods from 2020 to 2024. A detailed analysis of each ratio is provided below.
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibited a significant decrease from 48.49 in 2020 to 26.76 in 2022, indicating a sharp decline in the valuation relative to earnings during this period. However, there was an increase to 34.57 in 2023, followed by a notable drop to 17.46 in 2024, which represents the lowest level across the observed timeframe. Overall, the P/E ratio trend suggests fluctuating investor sentiment with a substantial valuation contraction by the end of 2024.
- Price to Operating Profit (P/OP) Ratio
- This ratio decreased markedly from 40.69 in 2020 to 22.18 in 2022, mirroring the decline seen in the P/E ratio. Unlike the P/E ratio, the P/OP ratio increased further to 30.54 in 2023 and continued rising to 34.28 in 2024. This pattern implies an improving valuation relative to operating profits after 2022, although it does not reach the initial 2020 level.
- Price to Sales (P/S) Ratio
- The P/S ratio declined from 6.30 in 2020 to 4.25 in 2022, reflecting reduced market valuation relative to revenue. It rebounded somewhat to 4.93 in 2023 and further increased to 5.58 in 2024. This gradual recovery suggests renewed investor confidence in the sales performance or future growth potential after a two-year dip.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio showed a consistent downward trend from 6.65 in 2020 to 4.91 in 2024. Unlike the other ratios, it did not experience a notable rebound. This steady decline indicates a gradual reduction in market valuation relative to the company's book value, potentially reflecting cautious investor views on the company’s asset base or overall financial strength.
Price to Earnings (P/E)
Abbott Laboratories, historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,734,323,411 | 1,735,184,289 | 1,737,946,233 | 1,763,482,267 | 1,771,529,358 | |
| Selected Financial Data (US$) | ||||||
| Net earnings (in millions) | 13,402) | 5,723) | 6,933) | 7,071) | 4,495) | |
| Earnings per share (EPS)2 | 7.73 | 3.30 | 3.99 | 4.01 | 2.54 | |
| Share price1, 3 | 134.92 | 114.01 | 106.74 | 116.79 | 123.04 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 17.46 | 34.57 | 26.76 | 29.13 | 48.49 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| CVS Health Corp. | 17.28 | 11.47 | 27.53 | 17.39 | 12.88 | |
| Elevance Health Inc. | 14.85 | 19.80 | 19.20 | 18.13 | 15.87 | |
| Intuitive Surgical Inc. | 87.82 | 74.11 | 64.99 | 59.94 | 87.47 | |
| Medtronic PLC | 27.97 | 30.94 | 23.38 | 46.56 | 26.30 | |
| UnitedHealth Group Inc. | 29.75 | 20.53 | 22.46 | 26.03 | 20.54 | |
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | 25.63 | 23.36 | 24.57 | 26.88 | 24.48 | |
| P/E Ratio, Industry | ||||||
| Health Care | 37.14 | 29.43 | 21.38 | 21.35 | 30.75 | |
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 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 13,402,000,000 ÷ 1,734,323,411 = 7.73
3 Closing price as at the filing date of Abbott Laboratories Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 134.92 ÷ 7.73 = 17.46
5 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending December 31, 2024. The share price experienced fluctuations, initially declining from $123.04 in 2020 to a low of $106.74 in 2022, followed by a recovery to $134.92 in 2024. This indicates some volatility but ultimately a positive growth trajectory in the latter years.
Earnings per share (EPS) showed a generally upward trend, rising from $2.54 in 2020 to $7.73 in 2024. There was a significant jump between 2023 and 2024, with EPS more than doubling from $3.30 to $7.73. However, a slight dip occurred in 2023 compared to 2022 when EPS decreased from $3.99 to $3.30, indicating a short-term setback before a strong recovery.
The price-to-earnings (P/E) ratio declined over the period, moving from a high of 48.49 in 2020 to 17.46 in 2024. This downward trend in P/E suggests that either the market price became more reasonable relative to earnings or that investors applied a lower premium to future earnings risk. Notably, the P/E ratio increased in 2023 to 34.57 from 26.76 in 2022, reflecting temporary market conditions or changes in investor sentiment before resuming its downward path in 2024.
- Share Price
- Declined between 2020 and 2022, then rose significantly by 2024, indicating volatility but positive growth potential.
- Earnings per Share (EPS)
- Exhibited strong overall growth with a dip in 2023, followed by a substantial increase in 2024, reflecting improved profitability.
- Price-to-Earnings (P/E) Ratio
- Showed a decreasing trend over five years, signaling an increasingly attractive valuation relative to earnings, albeit with a notable spike in 2023.
Overall, the data suggests improving earnings performance and a favorable adjustment in market valuation by the end of 2024, despite some fluctuations during the intermediate years.
Price to Operating Profit (P/OP)
Abbott Laboratories, historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,734,323,411 | 1,735,184,289 | 1,737,946,233 | 1,763,482,267 | 1,771,529,358 | |
| Selected Financial Data (US$) | ||||||
| Operating earnings (in millions) | 6,825) | 6,478) | 8,362) | 8,425) | 5,357) | |
| Operating profit per share2 | 3.94 | 3.73 | 4.81 | 4.78 | 3.02 | |
| Share price1, 3 | 134.92 | 114.01 | 106.74 | 116.79 | 123.04 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 34.28 | 30.54 | 22.18 | 24.45 | 40.69 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| CVS Health Corp. | 9.36 | 6.96 | 14.75 | 10.43 | 6.65 | |
| Elevance Health Inc. | 12.19 | 15.57 | 15.05 | 15.70 | 12.10 | |
| Intuitive Surgical Inc. | 86.83 | 75.42 | 54.49 | 56.11 | 88.37 | |
| Medtronic PLC | 19.98 | 21.20 | 20.48 | 37.44 | 26.29 | |
| UnitedHealth Group Inc. | 13.27 | 14.20 | 15.89 | 18.77 | 14.12 | |
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | 18.23 | 16.62 | 17.98 | 19.92 | 17.16 | |
| P/OP Ratio, Industry | ||||||
| Health Care | 25.94 | 25.66 | 16.51 | 17.67 | 22.32 | |
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 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 6,825,000,000 ÷ 1,734,323,411 = 3.94
3 Closing price as at the filing date of Abbott Laboratories Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 134.92 ÷ 3.94 = 34.28
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated a fluctuating trend over the period. Starting at $123.04 at the end of 2020, it declined for two consecutive years, reaching a low of $106.74 by the end of 2022. However, the share price rebounded in the following years, increasing to $114.01 in 2023 and further rising to $134.92 in 2024, ultimately surpassing the initial value recorded in 2020.
- Operating Profit per Share
- The operating profit per share showed an overall increasing tendency from 2020 to 2021, rising notably from $3.02 to $4.78. It remained relatively stable in 2022 at $4.81 before experiencing a decline in 2023 to $3.73. A modest recovery occurred in 2024, with the figure increasing slightly to $3.94. This pattern indicates some volatility but with a peak in 2021-2022 followed by a drop and slight rebound.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio decreased substantially from 40.69 in 2020 to a low of 22.18 in 2022, reflecting a period where the share price fell while operating profit per share improved or remained stable, suggesting a relative undervaluation or improved earnings performance. However, from 2022 onwards, the ratio increased again, reaching 30.54 in 2023 and further rising to 34.28 in 2024. This upward trend in the ratio after 2022 implies that the share price gained more relative to the operating profit per share, potentially signaling increased market valuation or expectations despite the lower operating profits in the recent years compared to the peak.
- Summary
- The financial metrics reveal a period of initial decline in share price followed by a recovery and growth phase. Operating profit per share peaked mid-period before declining and slightly rebounding, while the P/OP ratio correspondingly decreased and then increased again, indicating shifts in market valuation relative to earnings performance. The interplay between these measures suggests phases of changing investor sentiment and business performance impacts over the analyzed years.
Price to Sales (P/S)
Abbott Laboratories, historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,734,323,411 | 1,735,184,289 | 1,737,946,233 | 1,763,482,267 | 1,771,529,358 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 41,950) | 40,109) | 43,653) | 43,075) | 34,608) | |
| Sales per share2 | 24.19 | 23.12 | 25.12 | 24.43 | 19.54 | |
| Share price1, 3 | 134.92 | 114.01 | 106.74 | 116.79 | 123.04 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 5.58 | 4.93 | 4.25 | 4.78 | 6.30 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| CVS Health Corp. | 0.22 | 0.27 | 0.36 | 0.47 | 0.35 | |
| Elevance Health Inc. | 0.51 | 0.70 | 0.74 | 0.81 | 0.60 | |
| Intuitive Surgical Inc. | 24.42 | 18.71 | 13.81 | 17.89 | 21.29 | |
| Medtronic PLC | 3.18 | 3.72 | 3.72 | 5.57 | 4.36 | |
| UnitedHealth Group Inc. | 1.08 | 1.25 | 1.40 | 1.58 | 1.24 | |
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.11 | 1.15 | 1.22 | 1.48 | 1.29 | |
| P/S Ratio, Industry | ||||||
| Health Care | 2.61 | 2.72 | 2.48 | 2.65 | 2.59 | |
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 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 41,950,000,000 ÷ 1,734,323,411 = 24.19
3 Closing price as at the filing date of Abbott Laboratories Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 134.92 ÷ 24.19 = 5.58
5 Click competitor name to see calculations.
- Share Price Trends
- The share price experienced a decline from $123.04 in 2020 to $106.74 in 2022. However, from 2022 onwards, the share price showed an upward trend, rising to $114.01 in 2023 and further increasing to $134.92 in 2024. Overall, after an initial decrease, the share price recovered strongly by the end of the period.
- Sales per Share Trends
- Sales per share grew significantly from $19.54 in 2020 to a peak of $25.12 in 2022. There was a moderate decline to $23.12 in 2023, followed by a slight increase to $24.19 in 2024. Despite the fluctuations, sales per share remained higher in 2023 and 2024 compared to 2020, indicating an overall positive sales performance.
- Price-to-Sales (P/S) Ratio Trends
- The P/S ratio showed a downward trend from 6.3 in 2020 to 4.25 in 2022, aligning with the decline in share price despite rising sales per share. After 2022, the ratio increased again to 4.93 in 2023 and further to 5.58 in 2024, reflecting the share price recovery and relative valuation improvements compared to sales.
- Summary of Insights
- There is a clear pattern of initial share price depreciation between 2020 and 2022, even as sales per share increased, resulting in a declining P/S ratio during this period. The subsequent share price recovery from 2022 to 2024, coupled with sustained higher sales per share, led to a strengthening P/S ratio. This suggests improving market sentiment and valuation multiples in the latter years despite some short-term sales volatility.
Price to Book Value (P/BV)
Abbott Laboratories, historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,734,323,411 | 1,735,184,289 | 1,737,946,233 | 1,763,482,267 | 1,771,529,358 | |
| Selected Financial Data (US$) | ||||||
| Total Abbott shareholders’ investment (in millions) | 47,664) | 38,603) | 36,686) | 35,802) | 32,784) | |
| Book value per share (BVPS)2 | 27.48 | 22.25 | 21.11 | 20.30 | 18.51 | |
| Share price1, 3 | 134.92 | 114.01 | 106.74 | 116.79 | 123.04 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 4.91 | 5.12 | 5.06 | 5.75 | 6.65 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| CVS Health Corp. | 1.05 | 1.25 | 1.61 | 1.83 | 1.33 | |
| Elevance Health Inc. | 2.15 | 3.02 | 3.19 | 3.07 | 2.19 | |
| Intuitive Surgical Inc. | 12.41 | 10.01 | 7.78 | 8.59 | 9.53 | |
| Medtronic PLC | 2.05 | 2.26 | 2.24 | 3.26 | 2.48 | |
| UnitedHealth Group Inc. | 4.63 | 5.18 | 5.81 | 6.27 | 4.83 | |
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | 3.51 | 3.64 | 3.75 | 4.16 | 3.51 | |
| P/BV Ratio, Industry | ||||||
| Health Care | 5.48 | 5.44 | 4.90 | 5.07 | 4.90 | |
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 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Total Abbott shareholders’ investment ÷ No. shares of common stock outstanding
= 47,664,000,000 ÷ 1,734,323,411 = 27.48
3 Closing price as at the filing date of Abbott Laboratories Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 134.92 ÷ 27.48 = 4.91
5 Click competitor name to see calculations.
The provided financial data depicts several key indicators over a five-year period, illustrating trends related to market valuation and underlying company value.
- Share Price
- The share price experienced a decline from 123.04 US$ in 2020 to a low point of 106.74 US$ in 2022. Subsequently, it recovered to 114.01 US$ in 2023 and continued rising substantially to reach 134.92 US$ in 2024. This pattern suggests a period of depreciation followed by renewed investor confidence and upward momentum in the stock price.
- Book Value Per Share (BVPS)
- The book value per share showed consistent growth throughout the period, increasing from 18.51 US$ in 2020 to 27.48 US$ in 2024. This steady rise reflects ongoing improvements in the company's net asset value on a per-share basis, indicating accumulation of equity and possibly reinvestment of earnings or asset appreciation.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio decreased from 6.65 in 2020 to 4.91 in 2024, demonstrating a declining trend in the market price relative to the book value. Despite the share price recovering after 2022, the faster growth in BVPS led to this ratio's overall compression. A falling P/BV can imply that the stock is becoming more reasonably priced relative to its net assets, potentially signaling increased market valuation efficiency or reduced speculative premium.
Overall, the data reveals that while the company's intrinsic value per share (represented by BVPS) steadily improved, the market initially discounted the share price until 2022, after which the share price rebounded. The shrinking P/BV ratio through the years reflects a moderation in market pricing relative to the company's growing net asset base, suggesting a gradual alignment of market valuation with the underlying fundamentals.