ABBV
ACCE-researchedOverview
ACCE thesis
AbbVie manufactures immunology drugs led by Humira, oncology treatments including Imbruvica, and neuroscience therapies, generating $58 billion in annual revenue. The company's immunology franchise dominates with Skyrizi and Rinvoq posting 50%+ growth rates as Humira biosimilar erosion accelerates in the US market. Management expects these two drugs to reach $27 billion in combined peak sales by 2027, driven by expanded indications in inflammatory bowel disease and atopic dermatitis. The forward PE of 12.8x reflects the market's myopic focus on Humira's decline while ignoring that Skyrizi alone generated $7.7 billion in 2023 revenue. Free cash flow remains robust at $23 billion annually, funding a 3.8% dividend yield that's increased for 12 consecutive years.
- highEarnings collapsed 46%YoY earnings down 46.2% while revenue grew 12.4%, signaling severe cost pressure or one-time charges crushing profitability.
- highNegative equity, extreme leverageDebt/Equity of -20.91 indicates negative book equity, meaning liabilities massively exceed assets - structurally fragile balance sheet.
- moderateNet margin vs gross margin gapGross margin 72% but net margin only 5.8%, implying enormous below-gross-profit costs consuming nearly all earnings.
- moderateTrailing P/E severely inflatedP/E of 122.2x vs forward P/E 17.4x reflects depressed current earnings; any earnings recovery delay makes current valuation expensive.
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
Price
Valuation
INVESTORSix independent models converge on one confidence-weighted fair value, with full methodology and editable assumptions.
- +All six models: DCF, P/E and EV/EBITDA comps, Graham, dividend discount, residual income
- +Scenario bands, sensitivity tornado, and the 5-year historical valuation range
- +Editable DCF workbench with saved scenarios
Quality
INVESTORThe full quality picture: conviction breakdown, earnings quality, score history, and backtested returns.
- +Conviction score breakdown and earnings-quality grade
- +Growth / value / quality / momentum component scores
- +90-day score history and score-threshold backtests
Analysts
Wall Street consensus
The full analyst picture: the price-target distribution against the current price, forward consensus estimates, and how ACCE's own models compare.
- +Price-target low / average / high vs the current price, with implied upside
- +Forward revenue and EPS consensus by fiscal year
- +ACCE fair-value models lined up against the Street
Smart Money
PROFollow the institutions: 13F position changes, insider trades, and active 13D activist filings.
- +Quarter-over-quarter institutional position changes
- +Recent open-market insider transactions
- +Active 13D activist filings and top holders
Compare
Where it sits vs peers
Algorithmic peers (6)
| Ticker | Company | Mcap | P/E | ROE | D/E | Yield | Quality | |
|---|---|---|---|---|---|---|---|---|
| MRK | Merck & Company Inc. Common Stock (new) | $362.4B | 117.5 | 7.0% | 0.94 | 2.3% | - | Compare |
| JNJ | Johnson & Johnson Common Stock | $650.6B | 31.4 | 25.7% | 0.59 | 1.9% | - | Compare |
| NVS | Novartis AG Common Stock | $266.8B | 21.2 | 30.3% | 0.73 | 3.4% | - | Compare |
| NOVN.SW | Novartis | $265.0B | 21.0 | 30.3% | 0.73 | 4.0% | - | Compare |
| AZN.L | AstraZeneca | $258.7B | 25.0 | 22.0% | 0.57 | 2.6% | - | Compare |
| AZN | AstraZeneca PLC Ordinary Shares | $257.6B | 24.9 | 22.0% | 0.57 | 1.9% | - | Compare |
Sector report card
Where ABBV ranks against its sector peers on each metric.
News and Record
Press releases mentioning this company
- PR Newswire•Sep 18, 2026AbbVie Highlights New Real-World Data Supporting the Effectiveness of VRAYLAR® (cariprazine) at Psych Congress 2026
- PR Newswire•Sep 17, 2026AbbVie to Present Phase 3 Etentamig Results and Data from Broad Multiple Myeloma Portfolio at the 2026 International Myeloma Society (IMS) Meeting
- PR Newswire•Sep 17, 2026Allergan Aesthetics Presents New Clinical Data Evaluating Skin Quality Improvements in Individuals Taking Medical Weight Loss Medications
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