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Abbott Laboratories (ABT)

Company Dividend Discount ModelIndustry: Medical - DevicesSector: Healthcare

Valuation Snapshot

Stable Growth$188.48 - $503.14$288.76
Multi-Stage$129.47 - $141.42$135.34
Blended Fair Value$212.05
Current Price$133.94
Upside58.32%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.06%11.07%2.192.031.891.831.461.301.131.060.880.83
YoY Growth--7.87%7.46%3.34%25.08%12.78%14.99%6.76%20.14%6.65%7.53%
Dividend Yield--1.65%1.81%1.87%1.55%1.22%1.65%1.42%1.77%1.98%1.97%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)13,977.00
(-) Cash Dividends Paid (M)4,044.00
(=) Cash Retained (M)9,933.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2,795.401,747.131,048.28
Cash Retained (M)9,933.009,933.009,933.00
(-) Cash Required (M)-2,795.40-1,747.13-1,048.28
(=) Excess Retained (M)7,137.608,185.888,884.73
(/) Shares Outstanding (M)1,748.311,748.311,748.31
(=) Excess Retained per Share4.084.685.08
LTM Dividend per Share2.312.312.31
(+) Excess Retained per Share4.084.685.08
(=) Adjusted Dividend6.407.007.40
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$188.48$288.76$503.14
Upside / Downside40.72%115.59%275.65%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)13,977.0014,885.5115,853.0616,883.5117,980.9419,149.7019,724.19
Payout Ratio28.93%41.15%53.36%65.57%77.79%90.00%92.50%
Projected Dividends (M)4,044.006,124.888,459.1911,071.0813,986.7717,234.7318,244.88

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)5,562.315,615.035,667.76
Year 2 PV (M)6,976.607,109.497,243.63
Year 3 PV (M)8,292.078,530.118,772.65
Year 4 PV (M)9,513.689,879.5510,255.87
Year 5 PV (M)10,646.1611,160.3811,694.27
PV of Terminal Value (M)185,364.26194,317.42203,613.24
Equity Value (M)226,355.08236,611.97247,247.42
Shares Outstanding (M)1,748.311,748.311,748.31
Fair Value$129.47$135.34$141.42
Upside / Downside-3.34%1.04%5.59%

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