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
WACCMarket  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)
 WACCBook  8.46%  6.96%
Enterprise value
EVMarket  65,584  57,930 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook  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.
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

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/FCFOPS

\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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