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Abbvie Inc – Pharmaceutical Preparation Manufacturing
AbbVie Inc. is a pharmaceutical company headquartered in North Chicago, Illinois. It is ranked 6th on the list of largest biomedical companies by revenue. Their primary product is Humira (adalimumab) ($21 billion in 2022 revenues, 37% of total), administered via injection. It is approved to treat autoimmune diseases including rheumatoid arthritis, Crohns disease, plaque psoriasis, and ulcerative colitis.
Analysis Results
Intrinsic Value $1,048.58
Latest Price $152.74
Relative Value 85% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 24.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 24.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 31.1 29.5
2024 38.6 34.9
2025 47.9 41.2
2026 59.4 48.6
2027 73.8 57.4
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 2210 billion. This corresponds to a present value of 1640 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 212 billion. Adding in the terminal value gives a total present value of 1850 billion.

There are presently 1.77 billion outstanding shares, so the intrinsic value per share is 1048.58.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 28,463,000,000
Current Cash 9,229,000,000
Current Liabilities 29,538,000,000
Current Debt 4,136,000,000
Non-Cash Working Capital (NCWC) -6,168,000,000
Change in NCWC -1,567,000,000
EBIT 18,870,000,000
Tax Provision 1,632,000,000
Depreciation and Amortization 9,164,000,000
Capital Expenditure -695,000,000
Unlevered Free Cash Flow 23,486,933,590
Current Assets 27,928,000,000
Current Cash 9,830,000,000
Current Liabilities 35,194,000,000
Current Debt 12,495,000,000
Non-Cash Working Capital (NCWC) -4,601,000,000
Change in NCWC -136,000,000
EBIT 19,318,000,000
Tax Provision 1,440,000,000
Depreciation and Amortization 8,521,000,000
Capital Expenditure -787,000,000
Unlevered Free Cash Flow 24,774,347,832
Current Assets 24,173,000,000
Current Cash 8,479,000,000
Current Liabilities 28,661,000,000
Current Debt 8,502,000,000
Non-Cash Working Capital (NCWC) -4,465,000,000
Change in NCWC -2,228,000,000
EBIT 12,561,000,000
Tax Provision -1,224,000,000
Depreciation and Amortization 6,471,000,000
Capital Expenditure -798,000,000
Unlevered Free Cash Flow 16,006,000,000
Current Assets 49,519,000,000
Current Cash 39,924,000,000
Current Liabilities 15,585,000,000
Current Debt 3,753,000,000
Non-Cash Working Capital (NCWC) -2,237,000,000
Change in NCWC 810,000,000
EBIT 12,478,000,000
Tax Provision 544,000,000
Depreciation and Amortization 2,017,000,000
Capital Expenditure -552,000,000
Unlevered Free Cash Flow 13,947,394,493
Current Assets 16,945,000,000
Current Cash 8,061,000,000
Current Liabilities 17,239,000,000
Current Debt 5,308,000,000
Non-Cash Working Capital (NCWC) -3,047,000,000
Change in NCWC -4,255,000,000
EBIT 7,307,000,000
Tax Provision -490,000,000
Depreciation and Amortization 1,765,000,000
Capital Expenditure -638,000,000
Unlevered Free Cash Flow 4,179,000,000
Current Assets 21,223,000,000
Current Cash 9,789,000,000
Current Liabilities 16,641,000,000
Current Debt 6,415,000,000
Non-Cash Working Capital (NCWC) 1,208,000,000
Change in NCWC 823,000,000
EBIT 9,919,000,000
Tax Provision 2,418,000,000
Depreciation and Amortization 1,501,000,000
Capital Expenditure -529,000,000
Unlevered Free Cash Flow 8,610,060,308
Current Assets 16,187,000,000
Current Cash 6,423,000,000
Current Liabilities 9,781,000,000
Current Debt 402,000,000
Non-Cash Working Capital (NCWC) 385,000,000
Change in NCWC 941,000,000
EBIT 9,584,000,000
Tax Provision 1,931,000,000
Depreciation and Amortization 1,189,000,000
Capital Expenditure -479,000,000
Unlevered Free Cash Flow 8,887,625,063
Current Assets 16,314,000,000
Current Cash 8,407,000,000
Current Liabilities 10,894,000,000
Current Debt 2,431,000,000
Non-Cash Working Capital (NCWC) -556,000,000
Change in NCWC -1,316,000,000
EBIT 7,687,000,000
Tax Provision 1,501,000,000
Depreciation and Amortization 836,000,000
Capital Expenditure -532,000,000
Unlevered Free Cash Flow 4,938,628,743
Current Assets 16,088,000,000
Current Cash 8,374,000,000
Current Liabilities 11,400,000,000
Current Debt 4,446,000,000
Non-Cash Working Capital (NCWC) 760,000,000
Change in NCWC -745,000,000
EBIT 3,763,000,000
Tax Provision 595,000,000
Depreciation and Amortization 786,000,000
Capital Expenditure -612,000,000
Unlevered Free Cash Flow 2,246,881,806
Current Assets 17,848,000,000
Current Cash 9,895,000,000
Current Liabilities 6,879,000,000
Current Debt 431,000,000
Non-Cash Working Capital (NCWC) 1,505,000,000
Change in NCWC -139,000,000
EBIT 6,002,000,000
Tax Provision 1,204,000,000
Depreciation and Amortization 897,000,000
Capital Expenditure -491,000,000
Unlevered Free Cash Flow 4,913,709,677

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