ABBVCAUTIOUS

ABBV EV/EBITDA Analysis

26.7x

Higher than 78% of Healthcare sector peers

Updated 2141h ago·SEC filings & market data

Key Takeaway

AbbVie's current EV/EBITDA of 26.7x means that for every dollar of earnings before interest, taxes, depreciation, and amortization (EBITDA), investors are paying $26.70 in enterprise value — a measure of the company's total market worth including debt.

Sector Performance

78th percentile

ABBV

26.7x

Sector Median

14.8x

Sector Avg

27.8x

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Deep Analysis

This valuation is well above the healthcare sector median of 19.5x, placing AbbVie in the 82nd percentile among its peers, indicating it trades at a premium relative to similar companies. The metric has been perfectly stable over the past eight quarters, with no change year-over-year or quarter-over-quarter (both +0.0%). A high valuation combined with a flat trend suggests limited upside from multiple expansion, but also no deterioration in market sentiment — presenting a balanced risk profile with potential downside if earnings disappoint. Given the above, this metric neither supports nor contradicts the overall NEUTRAL verdict, as the elevated level aligns with cautious optimism while the stability removes a catalyst for immediate action.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ABBV?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does ABBV's EV/EBITDA compare to its sector?

ABBV's EV/EBITDA of 26.7x compares to a Healthcare sector median of 14.8x, placing it in the 78th percentile.

Who are ABBV's closest peers by EV/EBITDA?

The closest Healthcare peers by EV/EBITDA include: CAH (14.8x), AMGN (14.0x), DGX (13.6x), ALGN (13.5x), RVTY (16.8x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.