Abbott Laboratories

AI-generated fair value estimate for this company.

Method: Two-stage unlevered FCF DCF starting from TTM FCF of $7,824M (operating cash flow $9,905M minus capex $2,081M): 7% annual FCF growth years 1-5, 5% growth years 6-10, 3% terminal growth, 8% discount rate (WACC, consistent with Abbott's low 0.59 beta and mostly investment-grade debt). PV of years 1-10 FCF = $72.4B; PV of terminal value (Gordon growth on Year-10 FCF of $14.0B) = $133.6B; enterprise value approximately $206.0B; less net debt of $27.1B (total debt $32.7B minus cash $5.1B) = equity value approximately $178.9B divided by 1.73B shares = $103.42/share.

Reasoning: Abbott is a large, diversified, mature healthcare company with stable, growing, well-documented cash flows across Diagnostics, Nutrition, Medical Devices and Established Pharma, making a multi-stage unlevered DCF with explicit, moderating growth assumptions the most appropriate and standard valuation method; the result of about $103 sits almost exactly at the current $103.69 share price, indicating the stock is roughly fairly valued.