AbbVie, Inc.

Analyst Listing

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

Broker Analyst Analyst Email
BMO Capital Markets Alex Arfaei alex.arfaei@bmo.com
Morningstar Damien Conover damien.conover@morningstar.com
Argus Research David Toung dtoung@argusresearch.com
Deutsche Bank Research Gregg Gilbert gregg.gilbert@db.com
Erste Group Hans Engel hans.engel@erstegroup.com
Jefferies Jeffrey Holford jholford@jefferies.com
SunTrust Robinson Humphrey John T. Boris john.t.boris@suntrust.com
Societe Generale Justin Smith justin.smith@sgcib.com
Evercore ISI Mark Schoenebaum mark.schoenebaum@evercoreisi.com
Piper Jaffray Richard J. Purkiss richard.j.purkiss@pjc.com
Atlantic Equities Steve Chesney s.chesney@atlantic-equities.com
Cowen & Company Steve Scala steve.scala@cowen.com
Guggenheim Securities Tony Butler tony.butler@guggenheimpartners.com
Credit Suisse Vamil Divan vamil.divan@credit-suisse.com
William Blair Y. Katherine Xu kxu@williamblair.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 5,487 6,367 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF 7,003 6,562 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 163 248 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 42,156 56,318 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 13.02% 11.31% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv 26,426 15,351 NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR 481.64% 241.11% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
WACCMarket 15.01% 10.87% 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  8.69%  7.26%
Enterprise value
EVMarket 115,765 129,591 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook  116,203  129,740
Long-Run Growth
g = IR x ROIC
 62.69%  27.26% 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 36.93% 38.21% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D 4.71%  10.82% 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)

 5.06  5.05  16.16%  10.53%

15.71%

10.7120%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

13.07 

11.80

16.16% 

10.53%

15.71%

10.7120%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

21.10 

20.35

16.16% 

10.53%

15.71% 

10.7120% 

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

16.53

19.75

16.16% 

10.53%

15.71% 

10.7120% 

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

13.71 

13.23

16.16% 

10.53%

15.71% 

10.7120% 

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

2.75 

 2.30

16.16% 

10.53%

15.71% 

10.7120% 

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