Latest Ratios: P/E Ratio 25.8x · EV/EBITDA 16.1x · ROE 13.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $166.9B | $218.9B | $197.7B | $192.5B | $193.7B | $251.8B | $195.5B | $154.7B | $128.0B | $99.8B | $57.0B |
| Enterprise Value | $173.5B | $225.4B | $205.4B | $201.5B | $201.7B | $261.2B | $208.6B | $169.9B | $143.7B | $118.3B | $60.3B |
| P/E Ratio → | 25.76 | 33.68 | 14.80 | 33.66 | 28.08 | 35.72 | 43.80 | 42.17 | 53.98 | 211.37 | 40.86 |
| P/S Ratio | 3.77 | 4.94 | 4.71 | 4.80 | 4.44 | 5.85 | 5.65 | 4.85 | 4.19 | 3.64 | 2.73 |
| P/B Ratio | 3.17 | 4.15 | 4.13 | 4.96 | 5.25 | 6.99 | 5.93 | 4.94 | 4.17 | 3.21 | 2.75 |
| P/FCF | 22.57 | 29.60 | 31.13 | 38.05 | 24.82 | 29.11 | 34.16 | 34.39 | 26.10 | 22.51 | 27.36 |
| P/OCF | 17.45 | 22.88 | 23.10 | 26.51 | 20.21 | 23.90 | 24.75 | 25.21 | 20.32 | 17.92 | 17.78 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.09 | 4.90 | 5.02 | 4.62 | 6.06 | 6.03 | 5.33 | 4.70 | 4.32 | 2.89 |
| EV / EBITDA | 16.07 | 20.88 | 20.45 | 20.82 | 17.35 | 20.51 | 24.21 | 22.35 | 20.18 | 23.70 | 13.11 |
| EV / EBIT | 21.56 | 25.60 | 26.97 | 27.37 | 23.40 | 30.30 | 36.75 | 34.72 | 39.91 | 38.04 | 35.15 |
| EV / FCF | — | 30.48 | 32.34 | 39.83 | 25.85 | 30.21 | 36.44 | 37.78 | 29.30 | 26.68 | 28.99 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 55.5% | 55.5% | 50.8% | 50.0% | 51.1% | 53.9% | 50.2% | 52.3% | 51.7% | 47.7% | 53.9% |
| Operating Margin | 18.2% | 18.2% | 16.3% | 16.0% | 19.2% | 21.4% | 15.3% | 14.4% | 12.6% | 7.2% | 15.6% |
| Net Profit Margin | 14.7% | 14.7% | 31.9% | 14.3% | 15.9% | 16.4% | 13.0% | 11.6% | 7.7% | 1.7% | 6.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.0% | 13.0% | 30.9% | 15.1% | 19.0% | 20.5% | 14.0% | 11.9% | 7.7% | 1.8% | 6.7% |
| ROA | 7.8% | 7.8% | 17.3% | 7.8% | 9.3% | 9.6% | 6.4% | 5.5% | 3.3% | 0.7% | 2.8% |
| ROIC | 10.5% | 10.5% | 9.9% | 10.4% | 13.9% | 15.1% | 8.6% | 7.4% | 6.0% | 4.0% | 9.9% |
| ROCE | 11.7% | 11.7% | 10.8% | 10.9% | 13.8% | 15.0% | 9.0% | 8.0% | 6.1% | 3.4% | 7.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.29 | 0.29 | 0.32 | 0.41 | 0.49 | 0.53 | 0.60 | 0.61 | 0.64 | 0.90 | 1.06 |
| Debt / EBITDA | 1.40 | 1.40 | 1.52 | 1.64 | 1.54 | 1.51 | 2.31 | 2.51 | 2.75 | 5.59 | 4.78 |
| Net Debt / Equity | — | 0.12 | 0.16 | 0.23 | 0.22 | 0.26 | 0.40 | 0.49 | 0.51 | 0.60 | 0.16 |
| Net Debt / EBITDA | 0.61 | 0.61 | 0.76 | 0.93 | 0.69 | 0.74 | 1.51 | 2.00 | 2.21 | 3.71 | 0.74 |
| Debt / FCF | — | 0.89 | 1.21 | 1.77 | 1.03 | 1.09 | 2.28 | 3.39 | 3.20 | 4.18 | 1.63 |
| Interest Coverage | 25.83 | 25.83 | 12.63 | 10.55 | 27.37 | 21.03 | 8.02 | 5.98 | 4.94 | 3.54 | 5.65 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.58 | 1.58 | 1.67 | 1.64 | 1.63 | 1.85 | 1.72 | 1.44 | 1.62 | 2.26 | 4.02 |
| Quick Ratio | 1.18 | 1.18 | 1.23 | 1.16 | 1.23 | 1.46 | 1.30 | 1.04 | 1.20 | 1.86 | 3.65 |
| Cash Ratio | 0.54 | 0.54 | 0.56 | 0.53 | 0.66 | 0.78 | 0.60 | 0.38 | 0.45 | 1.08 | 2.82 |
| Asset Turnover | — | 0.51 | 0.52 | 0.55 | 0.59 | 0.57 | 0.48 | 0.47 | 0.46 | 0.36 | 0.38 |
| Inventory Turnover | 3.04 | 3.04 | 3.33 | 3.06 | 3.46 | 3.85 | 3.44 | 3.52 | 3.89 | 3.98 | 3.95 |
| Days Sales Outstanding | — | 65.29 | 60.25 | 59.74 | 51.99 | 54.97 | 67.65 | 62.07 | 61.86 | 69.95 | 56.85 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.5% | 1.9% | 1.9% | 1.8% | 1.7% | 1.3% | 1.3% | 1.5% | 1.5% | 1.9% | 2.7% |
| Payout Ratio | 63.1% | 63.1% | 28.6% | 62.1% | 47.7% | 45.3% | 57.0% | 61.6% | 83.4% | 387.6% | 109.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.9% | 3.0% | 6.8% | 3.0% | 3.6% | 2.8% | 2.3% | 2.4% | 1.9% | 0.5% | 2.4% |
| FCF Yield | 4.4% | 3.4% | 3.2% | 2.6% | 4.0% | 3.4% | 2.9% | 2.9% | 3.8% | 4.4% | 3.7% |
| Buyback Yield | 0.5% | 0.4% | 0.7% | 0.6% | 2.0% | 0.9% | 0.2% | 0.5% | 0.2% | 0.8% | 0.9% |
| Total Shareholder Yield | 3.0% | 2.3% | 2.6% | 2.5% | 3.7% | 2.2% | 1.5% | 1.9% | 1.7% | 2.7% | 3.6% |
| Shares Outstanding | — | $1.7B | $1.7B | $1.7B | $1.8B | $1.8B | $1.8B | $1.8B | $1.8B | $1.7B | $1.5B |
Legal and integration overhangs
Based on current market data, Abbott trades at a forward P/E of 17.14, which appears to reflect a conglomerate discount when compared to pure-play medical technology peers like Edwards Lifesciences, suggesting the market may be underpricing the long-term value of its diversified, recurring revenue business model.
The valuation multiple suggests that investors are applying a conservative growth premium, likely due to the slower-growth profile of the Established Pharmaceuticals and Nutrition segments. This pricing warrants further investigation into whether the market is failing to account for the 'consumerization' of the medical device portfolio, which could drive higher-than-expected margin expansion over the medium term.
According to reported financial statements, ROIC has remained compressed in the 2.0% to 3.0% range over the last ten quarters, indicating that the company's aggressive inorganic growth strategy is currently failing to generate returns that exceed the cost of capital for the broader enterprise.
The persistent gap between ROIC and historical performance suggests that the integration of large-scale acquisitions, such as St. Jude Medical, continues to weigh on capital efficiency. Investors should monitor whether management can improve asset utilization as these acquired units mature, or if the current capital allocation strategy will continue to suppress long-term compounding potential.
As indicated by the quarterly data, the cash conversion cycle has trended upward to 107 days in 2026Q1, reflecting a growing reliance on inventory and receivables that may be hindering the company's ability to convert revenue growth into immediate, high-quality free cash flow.
The elevated DIO of 124 days suggests potential inefficiencies in supply chain management or a strategic build-up of inventory to mitigate future disruptions. This trend warrants further investigation, as it appears to be a structural drag on liquidity that contrasts with the company's otherwise defensive and recurring revenue streams.
Based on recent balance sheet filings, the debt-to-equity ratio has climbed to 0.65 as of 2026Q1, marking a departure from the company's historically conservative leverage profile and signaling a more aggressive approach to financing its recent strategic expansion efforts through external debt markets.
While the interest coverage ratio of 22.31 remains comfortable, the upward trend in debt-to-EBITDA suggests that the company's balance sheet is becoming more sensitive to interest rate volatility. This shift warrants monitoring, as it reduces the financial flexibility that previously allowed the company to navigate sector-specific downturns without significant balance sheet strain.
The P/E ratio is frequently misapplied to Abbott's business model because it fails to account for the significant non-cash amortization and acquisition-related costs that distort reported net income, thereby obscuring the underlying cash-generative power of the company's core medical device and diagnostic franchises.
Analysts should instead prioritize EV/EBITDA or P/FCF to better capture the operational reality of the business, as these metrics strip away the accounting noise associated with the company's inorganic growth strategy. Relying solely on P/E may lead to an inaccurate assessment of the company's true earning power and its ability to sustain dividend growth.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ABT stock.
Abbott Laboratories's current P/E ratio is 25.8x. The historical average is 20.4x. This places it at the 69th percentile of its historical range.
Abbott Laboratories's current EV/EBITDA is 16.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.9x.
Abbott Laboratories's return on equity (ROE) is 13.0%. The historical average is 21.7%.
Based on historical data, Abbott Laboratories is trading at a P/E of 25.8x. This is at the 69th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Abbott Laboratories's current dividend yield is 2.46% with a payout ratio of 63.1%.
Abbott Laboratories has 55.5% gross margin and 18.2% operating margin. Operating margin between 10-20% is typical for established companies.
Abbott Laboratories's Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.