Abbott Labs - Comparative Multiple Analysis

Abbott Labs (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Abbott Labs

WikiWealth compares Abbott Labs's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Abbott Labs's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Abbott Labs.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Abbott Labs's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Abbott Labs's Analysis


How does this work? The Comparative Investment Analysis determines the value of Abbott Labs by comparing Abbott Labs financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Abbott Labs.

See the Abbott Labs cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Abbott Labs.

Also, see the Abbott Labs's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Abbott Labs's valuation conclusion for a quick summary.