DCF Studio

    ABT · NYQ · Healthcare

    Abbott Laboratories

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 95.27

    Market price

    USD 110.16

    Implied upside

    -13.5%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-12-31

    Value Per Share

    Perpetuity growth
    USD 95.27-13.5%
    Exit multiple
    USD 129.95+18.0%
    Market price
    USD 110.16

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    0bn5bn11bnFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35
    Nominal FCFFDiscounted to todayUSD
    LineFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35CAGR
    RevenueUSD 50.0bnUSD 53.5bnUSD 57.0bnUSD 60.4bnUSD 63.7bnUSD 66.8bnUSD 69.6bnUSD 72.2bnUSD 74.4bnUSD 76.2bn+4.8%
    EBITUSD 8.7bnUSD 9.3bnUSD 9.9bnUSD 10.5bnUSD 11.1bnUSD 11.6bnUSD 12.1bnUSD 12.6bnUSD 13.0bnUSD 13.3bn+4.8%
    NOPATUSD 7.3bnUSD 7.8bnUSD 8.3bnUSD 8.8bnUSD 9.3bnUSD 9.7bnUSD 10.1bnUSD 10.5bnUSD 10.8bnUSD 11.1bn+4.8%
    Add depreciation & amortisationUSD 3.8bnUSD 4.1bnUSD 4.3bnUSD 4.6bnUSD 4.8bnUSD 5.1bnUSD 5.3bnUSD 5.5bnUSD 5.6bnUSD 5.8bn+4.8%
    Less capital expenditureUSD -2.5bnUSD -2.8bnUSD -3.1bnUSD -3.5bnUSD -3.9bnUSD -4.3bnUSD -4.7bnUSD -5.0bnUSD -5.4bnUSD -5.8bn+9.9%
    Capex, % of revenue4.9%5.2%5.5%5.8%6.1%6.4%6.7%7.0%7.3%7.6%-
    Less increase in working capitalUSD -1.2bnUSD -771.9mUSD -759.8mUSD -738.1mUSD -706.3mUSD -664.5mUSD -612.8mUSD -551.5mUSD -481.1mUSD -402.7m-11.6%
    Free cashflow to firmUSD 7.4bnUSD 8.3bnUSD 8.7bnUSD 9.1bnUSD 9.5bnUSD 9.8bnUSD 10.1bnUSD 10.4bnUSD 10.6bnUSD 10.7bn+4.2%
    Discount factor0.96410.89620.83300.77430.71970.66900.62190.57800.53730.4994-
    Present valueUSD 7.1bnUSD 7.4bnUSD 7.3bnUSD 7.1bnUSD 6.8bnUSD 6.6bnUSD 6.3bnUSD 6.0bnUSD 5.7bnUSD 5.3bn-
    Present Value Of The ForecastUSD 65.5bn

    Discount Rate

    Source shown per component. All overridable above.

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta0.690Reported 0.537, pulled toward 1.0 (Blume)
    Cost of equity7.81%Risk-free + beta x equity risk premium
    Cost of debt5.29%Risk-free + 40bp, the spread for a AAA rating at 16.3x interest cover. Book interest / average debt was lower, at 3.4%.
    Market capitalisationUSD 190.6bn93.2% of capital
    Total debtUSD 13.9bn6.8% of capital, book value as a proxy
    Tax rate16.5%Effective, capped at statutory
    WACC7.58%E/V x Re + D/V x Rd x (1 - t)

    Terminal Value

    Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.

    Perpetuity growth at 2.50%

    Value per shareUSD 95.27

    62% of EV

    Forecast FCFF, final year
    USD 10.7bn
    Capex at depreciation, working capital in reinvestment
    USD 13.9bn
    Less reinvestment at g/ROIC (24.4% of NOPAT)
    USD -3.4bn
    Capitalised
    USD 10.5bn
    ROIC (reported)
    10.2%
    Terminal value, undiscounted
    USD 212.3bn
    Terminal value, discounted
    USD 106.0bn
    Enterprise value
    USD 171.6bn
    Less net debt
    USD 4.9bn
    Equity value
    USD 166.6bn

    Exit at 17.5x EBITDA

    Value per shareUSD 129.95

    72% of EV

    Terminal value, undiscounted
    USD 333.7bn
    Terminal value, discounted
    USD 166.7bn
    Enterprise value
    USD 232.2bn
    Less net debt
    USD 4.9bn
    Equity value
    USD 227.3bn

    Spread between methods: 31%.

    Sensitivity

    Value per share (USD) by discount rate and long-run growth.

    Long-run growth
    Discount rate1.50%2.00%2.50%3.00%3.50%
    5.58%141.48148.30157.64170.99191.23
    6.58%112.72115.34118.83123.55130.10
    7.58%93.4594.2095.2796.7798.86
    8.58%79.6479.4979.4679.5679.85
    9.58%69.2768.6768.1067.5667.06

    Outlined: this model. Green text: above today's price of 110.16. Shading: distance from this model's own value.

    Priced In

    What each input would have to be to justify the current price, one at a time.

    InputActualModelImplied
    Revenue growth, a year0.5%5.6%7.4%
    EBIT margin19.2%17.4%20.6%
    Discount rate-7.6%6.9%
    Download as Excel

    Live formulas, not pasted numbers - edit a driver and the workbook reprices.

    Yahoo Finance and RBA data. General information, not advice. Methodology.