Abbot Laboratories

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
BTIG	Dane Leone	dleone@btig.com
Leerink Partners	Danielle Antalffy	danielle.antalffy@leerink.com
Argus Research	David Toung	dtoung@argusresearch.com
Morningstar	Debbie S. Wang	debbie.wang@morningstar.com
RBC Capital Markets	Glenn Novarro	glenn.novarro@rbccm.com
Erste Group	Hans Engel	hans.engel@erstegroup.com
Raymond James	Jayson Bedford	jayson.bedford@raymondjames.com
Jefferies	Jeffrey Holford	jholford@jefferies.com
Gabelli & Company	Jennie Tsai	jtsai@gabelli.com
BMO Capital Markets	Joanne K. Wuensch	joanne.wuensch@bmo.com
Cowen & Company	Joshua Jennings	josh.jennings@cowen.com
First Global Stockbroking	Kavita Thomas	kavita.thomas@fglobal.com
Deutsche Bank Research	Kristen Stewart	kristen.stewart@db.com
Wells Fargo Securities	Larry Biegelsen	lawrence.biegelsen@wellsfargo.com
William Blair	Margaret Kaczor	mkaczor@williamblair.com
Credit Suisse	Matthew Keeler	matthew.keeler@credit-suisse.com
Stifel Nicolaus	Rick Wise	wiser@stifel.com

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Primary Input Data

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Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	1,874	2,112	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	1,856	2,082	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	32	76	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	34,815	48,351	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	5.38%	4.37%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	5,544	14,889	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	295.85%	705.02%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	13.07%	11.18%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	8.46%	6.96%
Enterprise value	EV_Market	65,584	57,930	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	65,883	58,479
Long-Run Growth	g = IR x ROIC	15.92%	30.79%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	14.13%	15.58%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	33.80%	29.40%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	3.21	2.78	21.78%	45.57%	17.22%	31.70%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	15.06	12.59	21.78%	45.57%	17.22%	31.70%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	35.00	27.43	21.78%	45.57%	17.22%	31.70%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	35.34	27.82	21.78%	45.57%	17.22%	31.70%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	22.75	17.83	21.78%	45.57%	17.22%	31.70%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	1.88	1.20	21.78%	45.57%	17.22%	31.70%

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