艾伯维公司（纽约证券交易所代码：ABBV）没有被忽视

Withaprice-to-earnings(or"P/E")ratioof65.6xAbbVieInc.(NYSE:ABBV)maybesendingverybearishsignalsatthemoment,giventhatalmosthalfofallcompaniesintheUnitedStateshaveP/Eratiosunder16xandevenP/E'slowerthan9xarenotunusual.Nonetheless,we'dneedtodigalittledeepertodetermineifthereisarationalbasisforthehighlyelevatedP/E.

Recenttimeshaven'tbeenadvantageousforAbbVieasitsearningshavebeenfallingquickerthanmostothercompanies.OnepossibilityisthattheP/Eishighbecauseinvestorsthinkthecompanywillturnthingsaroundcompletelyandacceleratepastmostothersinthemarket.Ifnot,thenexistingshareholdersmaybeverynervousabouttheviabilityoftheshareprice.

NYSE:ABBVPricetoEarningsRatiovsIndustryMarch25th2024

Ifyou'dliketoseewhatanalystsareforecastinggoingforward,youshouldcheckoutour

free

reportonAbbVie.

IsThereEnoughGrowthForAbbVie?

InordertojustifyitsP/Eratio,AbbViewouldneedtoproduceoutstandinggrowthwellinexcessofthemarket.

Takingalookbackfirst,thecompany'searningspersharegrowthlastyearwasn'tsomethingtogetexcitedaboutasitpostedadisappointingdeclineof59%.AtleastEPShasmanagednottogocompletelybackwardsfromthreeyearsagoinaggregate,thankstotheearlierperiodofgrowth.Accordingly,shareholdersprobablywouldn'thavebeenoverlysatisfiedwiththeunstablemedium-termgrowthrates.

Shiftingtothefuture,estimatesfromtheanalystscoveringthecompanysuggestearningsshouldgrowby43%eachyearoverthenextthreeyears.Meanwhile,therestofthemarketisforecasttoonlyexpandby10%eachyear,whichisnoticeablylessattractive.

Withthisinformation,wecanseewhyAbbVieistradingatsuchahighP/Ecomparedtothemarket.Itseemsmostinvestorsareexpectingthisstrongfuturegrowthandarewillingtopaymoreforthestock.

WhatWeCanLearnFromAbbVie'sP/E?

We'dsaytheprice-to-earningsratio'spowerisn'tprimarilyasavaluationinstrumentbutrathertogaugecurrentinvestorsentimentandfutureexpectations.

Aswesuspected,ourexaminationofAbbVie'sanalystforecastsrevealedthatitssuperiorearningsoutlookiscontributingtoitshighP/E.RightnowshareholdersarecomfortablewiththeP/Eastheyarequiteconfidentfutureearningsaren'tunderthreat.Unlesstheseconditionschange,theywillcontinuetoprovidestrongsupporttotheshareprice.

Youalwaysneedtotakenoteofrisks,forexample-AbbViehas5warningsignswethinkyoushouldbeawareof.

IftheserisksaremakingyoureconsideryouropiniononAbbVie,exploreourinteractivelistofhighqualitystockstogetanideaofwhatelseisoutthere.

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ThisarticlebySimplyWallStisgeneralinnature.Weprovidecommentarybasedonhistoricaldataandanalystforecastsonlyusinganunbiasedmethodologyandourarticlesarenotintendedtobefinancialadvice.Itdoesnotconstitutearecommendationtobuyorsellanystock,anddoesnottakeaccountofyourobjectives,oryourfinancialsituation.Weaimtobringyoulong-termfocusedanalysisdrivenbyfundamentaldata.Notethatouranalysismaynotfactorinthelatestprice-sensitivecompanyannouncementsorqualitativematerial.SimplyWallSthasnopositioninanystocksmentioned.