Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Abbott Laboratories (ABT)

Company Dividend Discount ModelIndustry: Medical - DevicesSector: Healthcare

Valuation Snapshot

Stable Growth$321.78 - $1,589.93$679.16
Multi-Stage$174.70 - $191.08$182.74
Blended Fair Value$430.95
Current Price$133.94
Upside221.75%
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 Rate7.60%7.60%7.60%
Growth Rate5.50%6.50%7.50%
Fair Value$321.78$679.16$1,589.93
Upside / Downside140.24%407.07%1,087.04%

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 Rate7.60%7.60%7.60%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)5,638.985,692.435,745.88
Year 2 PV (M)7,170.257,306.837,444.69
Year 3 PV (M)8,639.708,887.729,140.43
Year 4 PV (M)10,049.1510,435.6110,833.11
Year 5 PV (M)11,400.3811,951.0212,522.74
PV of Terminal Value (M)262,535.25275,215.80288,381.67
Equity Value (M)305,433.71319,489.41334,068.52
Shares Outstanding (M)1,748.311,748.311,748.31
Fair Value$174.70$182.74$191.08
Upside / Downside30.43%36.44%42.66%

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