AbbVie Inc. (ABBV) DCF Valuation
Transparent DCF models put AbbVie Inc. (ABBV)'s fair value in a range of $136.70 – $154.40 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $225.42 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $225.42, the market is pricing in roughly +9.3%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +3.2%. The price is betting on acceleration above its track record.
Current Price
$225.42
Fair-Value Range
$136.70 – $154.40
Market-Implied Growth
+9.3%/yr
vs +3.2% 5Y actual
ABBV DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $20.5B · 1.77B shares · net debt $63.1B
Estimated Fair Value
$154.40
-31.5% vs $225.42
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $225.42; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $201 | $213 | $227 | $244 | $265 |
| 9.0% | $167 | $176 | $185 | $196 | $209 |
| 10.0% | $142 | $148 | $154 | $162 | $171 |
| 11.0% | $122 | $126 | $131 | $136 | $143 |
| 12.0% | $106 | $109 | $113 | $117 | $121 |
About AbbVie Inc.
AbbVie Inc. is a global biopharmaceutical company dedicated to the discovery, development, manufacturing, and commercialization of advanced medicines. Its extensive therapeutic portfolio encompasses several key areas: Immunology and Inflammation: Leading products include HUMIRA, an injectable therapy for autoimmune and intestinal Behçet's diseases; SKYRIZI, which addresses moderate to severe plaque psoriasis in adults; and RINVOQ, a JAK inhibitor for moderate to severe active rheumatoid arthritis in adult patients. Oncology and Hematology: For blood cancers, AbbVie provides IMBRUVICA and VENCLEXTA (a BCL-2 inhibitor), both indicated for adult patients with chronic lymphocytic leukemia (CLL) and small lymphocytic lymphoma (SLL). Virology: MAVYRET offers a treatment option for individuals with chronic HCV genotype 1-6 infection. Gastroenterology and Endocrinology: The company supplies CREON, an enzyme replacement therapy for exocrine pancreatic insufficiency, and Synthroid, used to manage hypothyroidism. Linzess/Constella helps treat irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation. Women's Health and Urology: Lupron serves as a palliative treatment for conditions like advanced prostate cancer, endometriosis, central precocious puberty, and anemia caused by uterine fibroids. ORILISSA, a nonpeptide small molecule GnRH antagonist, is designed for women experiencing moderate to severe endometriosis pain. Neurology: AbbVie offers Duopa and Duodopa, a levodopa-carbidopa intestinal gel for Parkinson's disease, and Ubrelvy to treat migraines (with or without aura) in adults. The therapeutic formulation of Botox is also part of its offerings. Ophthalmology: Its eye care segment features Lumigan/Ganfort (a bimatoprost ophthalmic solution) and Alphagan/Combigan (an alpha-adrenergic receptor agonist), both aimed at reducing elevated intraocular pressure (IOP) in patients with open-angle glaucoma (OAG) or ocular hypertension. Restasis, a calcineurin inhibitor immunosuppressant, is provided to enhance tear production, alongside other specialized eye care products. AbbVie Inc. also engages in research collaborations, including a partnership with Dragonfly Therapeutics, Inc. The company was founded in 2012 and operates from its headquarters in North Chicago, Illinois.
- Sector
- Healthcare
- Industry
- Drug Manufacturers - General
- CEO
- Robert A. Michael