Signal Ledger LabSignal Ledger valuation · ABT · AUTO
Abbott Laboratories
What the shares are worth today on reported data and uniform rules (no analyst has reviewed this company yet): every line valued at the end of FY2030, net debt rolled forward, then discounted back to Jun 30, 2026.
- Business value at FY2030
- $260B
- FY2030 revenue
- $62B
- FY2030 EPS · P/E
- $6.17 · 23×
- Discount rate (WACC · equity)
- 7.75% · 8.45%
AUTO. Automatic estimate: reported data and uniform rules only; not reviewed by an analyst.
Latest quarter in this research: Q3 2026
Reported Oct 21, 2026 for the quarter to Sep 30, 2026 (company release ↗). This valuation already reflects these results (researched Oct 23, 2026).
| Segment | Revenue | vs a year ago | Operating income | Margin |
|---|---|---|---|---|
| Medical Devices | $5.83B | +7% | — | — |
| Diagnostic Products | $3.31B | +47% | — | — |
| Nutritional Products | $2.26B | +5% | — | — |
| Established Pharmaceuticals | $1.61B | +7% | — | — |
- Reported sales rose 14.5%; comparable sales rose 7.0%, including both periods of Exact Sciences acquired March 23, 2026. Reported diagnostics growth includes the acquisition; it is not organic growth.
- GAAP operating earnings $1.358B and GAAP diluted EPS $0.53; adjusted EPS $1.42 excludes specified items.
- Full-year comparable sales guidance approximately 6.0%; adjusted diluted EPS guidance $5.50-$5.55. These are annual guidance, not FY2030 targets.
- This release does not provide a complete new balance sheet, finance-lease balance and period-end common share count. T0 remains June 30; annual-only auto-estimate operating drivers are retained.
What each business is worth
| Business | Model | FY2030 revenue | Value today | Per share | 2030 multiple | Value from beyond FY2030 |
|---|---|---|---|---|---|---|
| Medical Devices | Margin | $39B | $245B | $141.57 | 20.3× EBIT | 73% |
| Diagnostic Products | Margin | $7.2B | $9.6B | $5.52 | 5.7× EBIT | 39% |
| Nutritional Products | Margin | $8.6B | $18B | $10.35 | 12.0× EBIT | 60% |
| Established Pharmaceutical Products | Margin | $7.6B | $32B | $18.27 | 18.0× EBIT | 71% |
| Company costsHead-office costs no segment carries, valued as one negative business | Cost line | — | −$86B | −$49.91 | — | 70% |
| All businesses | $62B | $218B | $125.79 |
From 2030 back to today
- Enterprise value at end of FY2030$260B
- Less net debt at FY2030$13B
- Equity value at FY2030$248B
- ÷ (1 + 8.45%)^4.5 years at the cost of equity$172B
- + dividends paid on the way, discounted$16B
This reconciliation checks the published Signal Ledger valuation against the net-debt path. The difference is 1.3%, inside our 5% tolerance.
From businesses to one share
- All businesses, valued today$218B
- − borrowings$33B
- − finance leases$0B
- − preferred and minority claims$0.7B
- + cash and short-term investments$5.6B
- ÷ diluted shares1.730B
- Signal Ledger valuation$109.81
Year by year to FY2030
| Fiscal year | Revenue | EBITDA | Capex | Free cash flow | Net debt at year end |
|---|---|---|---|---|---|
| FY2026 | $47B | $10B | $2B | $6.2B | $27B |
| FY2027 | $50B | $11B | $2B | $7B | $25B |
| FY2028 | $54B | $12B | $2.1B | $8B | $23B |
| FY2029 | $58B | $14B | $2.2B | $9.2B | $18B |
| FY2030 | $62B | $16B | $2.3B | $10B | $13B |
What must be true
- Medical Devices grows revenue from $24.1B in FY2026 to $38.8B in FY2030 (1.6×).
- Diagnostic Products revenue shrinks from $8.6B in FY2026 to $7.2B in FY2030 (-16.2%).
- Nutritional Products holds revenue roughly flat, from $8.5B in FY2026 to $8.6B in FY2030.
- Established Pharmaceutical Products grows revenue from $5.9B in FY2026 to $7.6B in FY2030 (1.3×).
- Medical Devices raises its EBIT margin from 33.7% to 37.7%.
- Diagnostic Products holds its EBIT margin at 19.5%.
- Nutritional Products holds its EBIT margin at 18.4%.
- Established Pharmaceutical Products raises its EBIT margin from 23.3% to 27.3%.
- The company spends $10.7B of capital expenditure through FY2030.
- Net debt peaks at $27.7B in FY2025 and stays financeable.
What the price implies
At our discount rate, the price assumes less than our research overall: one combination matching $102.51 is about $58.4B of FY2030 sales (growth of about 5.5% a year from FY2026) with 31.7% GAAP EBIT margin — versus $62.2B and 31.7% GAAP EBIT margin in our research.
At the research price of $102.51 (2026-10-23), the price asks less than our assumptions overall. These are operating requirements at that price, not additional valuations or forecasts.
If sales and margins changed together
Each row matches the same research price at our unchanged discount rate, by scaling every operating line's margin by one common factor. Sales cover margin and capacity lines only; other valuation lines stay fixed. Margins are revenue-weighted within each metric, before separately modeled corporate costs and eliminations. The conclusion uses the row at our research margins when sales alone can match the price, otherwise the solved row needing the least sales growth; this is a trade-off between growth and profitability, not a forecast.
| FY2030 sales factor | FY2030 sales | FY2026–30 CAGR | Required FY2030 margin | Requirement |
|---|---|---|---|---|
| 0.94×At research margins | $58.4B | 5.5% | 31.7% GAAP EBIT | Within margin guardrails |
| 1.50× | $93.3B | 18.7% | 24.0% GAAP EBIT | Within margin guardrails |
| 2.00× | $124.4B | 27.5% | 20.6% GAAP EBIT | Within margin guardrails |
| 3.00× | $186.6B | 41.1% | 17.2% GAAP EBIT | Within margin guardrails |
CAGR uses $47B of same-scope FY2026 sales from the published model or its sourced research base, over four fiscal years. “Within margin guardrails” checks numeric limits only, not commercial plausibility. Each line and year must stay at or below 50.0% GAAP EBIT and 100% EBITDA, or our research margin where that is higher; capacity EBIT uses the engine's equipment depreciation. Unsolved margins are not extrapolated.
- Implied discount rate
- 8.0%
- All-business FY2030 sales factor
- 0.94×
The WACC that makes model value equal the price, shifting WACC and cost of equity by the same amount. Model: 7.8% WACC · 8.5% cost of equity.
FY2030 revenue would need to reach $58.4B (model: $62.2B) across the margin and capacity businesses. FY1 stays fixed; the sales change ramps to FY2030 and stays at that factor thereafter.
If only one business changed
Businesses with margin or capacity revenue paths, ordered by value today. Revenue and margin are separate alternatives; these requirements are not added together.
Medical Devices
- Revenue alone
- FY2030 revenue would need to reach $36.1B (model: $38.8B).
- Margin alone
FY2030 EBIT margin would need to reach 35.9% (model: 37.7%).
Established Pharmaceutical Products
- Revenue alone
- FY2030 revenue would need to reach $3B (model: $7.6B).
- Margin alone
FY2030 EBIT margin would need to reach 17.0% (model: 27.3%).
Nutritional Products
- Revenue alone
- This business alone cannot get there within the search range.
- Margin alone
FY2030 EBIT margin would need to reach 6.8% (model: 18.4%).
Diagnostic Products
- Revenue alone
- This business alone cannot get there within the search range.
- Margin alone
- This business alone cannot get there within the search range.
Mechanical requirements, not forecasts. The separate sales-only and single-business factors are searched from 0.1× to 6×; an unsolved comparison means this business alone cannot get there within those bounds. Single-business revenue changes apply from FY2 onward; margin changes scale the full EBIT or EBITDA margin path. Mixed groups show revenue-weighted EBIT and EBITDA margins separately. Requirements above 100% are not feasible margins. Joint rows instead search non-negative uniform margin factors only up to the EBIT/EBITDA guardrails; the entire margin path scales, including post-FY2030 convergence. Sales and margins change together only in that table. The rate search runs from the largest terminal growth rate plus 0.5 percentage points to 30% WACC.
The discount rate
- Cost of equity
- 8.45%
- WACC
- 7.75%
- 10-year Treasury · model / spot
- 3.87% · 5.13%
r_f 3.87% (5-year average 10-year Treasury yield 3.87% (spot 5.13% on 2026-10-21)) + β 0.92 = 0.8 floor relevered for debt/equity 0.18 (§4.5 leverage rule) × 5%, rounded to 0.01% (1bp)
methodology §4.5: market-weighted WACC, not rounded
The model uses the recorded 5-year average Treasury yield. The spot yield is shown for context.
Every input, with its source
Show 31 inputs · reported, guidance and rule-based
| Input | Value | Basis | Why |
|---|---|---|---|
| Revenue FY2026Medical Devices | $24.1B | Rule | hold moderate (methodology §4.2), growth 12.6% SEC segmentsAnnual abt:MedicalDevicesMember 2025-12-31; SEC companyAnnual 2025-12-31; 0001628280-26-010185; SEC 2024-12-31; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| Revenue FY2030Medical Devices | $38.8B | Rule | hold moderate (methodology §4.2), growth 12.6% SEC segmentsAnnual abt:MedicalDevicesMember 2025-12-31; SEC companyAnnual 2025-12-31; 0001628280-26-010185; SEC 2024-12-31; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| EBIT margin FY2030Medical Devices | 37.7% | Rule | linear path to 37.7% by FY2030 (§4.3 E2: 4.0000 points = 4pp × clamp((CAGR − 1.5%) / 2%, 0, 1); revenue CAGR 12.6% to FY2030; no cited expansion evidence) SEC segmentsAnnual abt:MedicalDevicesMember 2025-12-31; SEC companyAnnual 2025-12-31; 0001628280-26-010185; ; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| Maintenance capexMedical Devices | 3.1% | Rule | Automatic rule (auto-reported-v 1): historical capex ratio floored at historical D&A ratio (§3.1) us-gaap:SegmentExpenditureAdditionToLongLivedAssets 0001628280-26-010185 2025-12-31; us-gaap:Depreciation 0001628280-26-010185 2025-12-31; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| Terminal growthMedical Devices | 3.0% | Rule | methodology §4.2 terminal growth for a growth line Valuation methodology §4.2 · Read methodology ↗ |
| Revenue FY2026Diagnostic Products | $8.6B | Rule | hold decline (methodology §4.2), growth -4.3% SEC segmentsAnnual abt:DiagnosticProductsMember 2025-12-31; SEC companyAnnual 2025-12-31; 0001628280-26-010185; SEC 2024-12-31; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| Revenue FY2030Diagnostic Products | $7.2B | Rule | hold decline (methodology §4.2), growth -4.3% SEC segmentsAnnual abt:DiagnosticProductsMember 2025-12-31; SEC companyAnnual 2025-12-31; 0001628280-26-010185; SEC 2024-12-31; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| EBIT margin FY2030Diagnostic Products | 19.5% | Rule | linear path to 19.5% by FY2030 (declining line without a management target holds its latest margin) SEC segmentsAnnual abt:DiagnosticProductsMember 2025-12-31; SEC companyAnnual 2025-12-31; 0001628280-26-010185; ; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| Maintenance capexDiagnostic Products | 8.5% | Rule | Automatic rule (auto-reported-v 1): historical capex ratio floored at historical D&A ratio (§3.1) us-gaap:SegmentExpenditureAdditionToLongLivedAssets 0001628280-26-010185 2025-12-31; us-gaap:Depreciation 0001628280-26-010185 2025-12-31; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| Terminal growthDiagnostic Products | -3.0% | Rule | methodology §4.2 terminal growth for a declining line Valuation methodology §4.2 · Read methodology ↗ |
| Revenue FY2026Nutritional Products | $8.5B | Rule | hold moderate (methodology §4.2), growth 0.5% SEC segmentsAnnual abt:NutritionalProductsMember 2025-12-31; SEC companyAnnual 2025-12-31; 0001628280-26-010185; SEC 2024-12-31; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| Revenue FY2030Nutritional Products | $8.6B | Rule | hold moderate (methodology §4.2), growth 0.5% SEC segmentsAnnual abt:NutritionalProductsMember 2025-12-31; SEC companyAnnual 2025-12-31; 0001628280-26-010185; SEC 2024-12-31; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| EBIT margin FY2030Nutritional Products | 18.4% | Rule | linear path to 18.4% by FY2030 (§4.3 E2: 0.0000 points = 4pp × clamp((CAGR − 1.5%) / 2%, 0, 1); revenue CAGR 0.5% to FY2030; no cited expansion evidence) SEC segmentsAnnual abt:NutritionalProductsMember 2025-12-31; SEC companyAnnual 2025-12-31; 0001628280-26-010185; ; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| Maintenance capexNutritional Products | 3.6% | Rule | Automatic rule (auto-reported-v 1): historical capex ratio floored at historical D&A ratio (§3.1) us-gaap:SegmentExpenditureAdditionToLongLivedAssets 0001628280-26-010185 2025-12-31; us-gaap:Depreciation 0001628280-26-010185 2025-12-31; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| Terminal growthNutritional Products | 2.0% | Rule | methodology §4.2 terminal growth for a mature line Valuation methodology §4.2 · Read methodology ↗ |
| Revenue FY2026Established Pharmaceutical Products | $5.9B | Rule | hold moderate (methodology §4.2), growth 6.6% SEC segmentsAnnual abt:EstablishedPharmaceuticalProductsMember 2025-12-31; SEC companyAnnual 2025-12-31; 0001628280-26-010185; SEC 2024-12-31; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| Revenue FY2030Established Pharmaceutical Products | $7.6B | Rule | hold moderate (methodology §4.2), growth 6.6% SEC segmentsAnnual abt:EstablishedPharmaceuticalProductsMember 2025-12-31; SEC companyAnnual 2025-12-31; 0001628280-26-010185; SEC 2024-12-31; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| EBIT margin FY2030Established Pharmaceutical Products | 27.3% | Rule | linear path to 27.3% by FY2030 (§4.3 E2: 4.0000 points = 4pp × clamp((CAGR − 1.5%) / 2%, 0, 1); revenue CAGR 6.6% to FY2030; no cited expansion evidence) SEC segmentsAnnual abt:EstablishedPharmaceuticalProductsMember 2025-12-31; SEC companyAnnual 2025-12-31; 0001628280-26-010185; ; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| Maintenance capexEstablished Pharmaceutical Products | 3.1% | Rule | Automatic rule (auto-reported-v 1): historical capex ratio floored at historical D&A ratio (§3.1) us-gaap:SegmentExpenditureAdditionToLongLivedAssets 0001628280-26-010185 2025-12-31; us-gaap:Depreciation 0001628280-26-010185 2025-12-31; Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| Terminal growthEstablished Pharmaceutical Products | 3.0% | Rule | methodology §4.2 terminal growth for a growth line Valuation methodology §4.2 · Read methodology ↗ |
| Share of revenue FY2026Company costs | 8.5% | Rule | company costs outside segment profit, cash only: Automatic rule (auto-reported-v 1): annual sum of line EBIT minus consolidated EBIT; zero suppresses duplicate corporate costs after allocation; grows with the lines' revenue SEC companyAnnual 2025-12-31; 0001628280-26-010185 |
| Share of revenue FY2034Company costs | 8.5% | Rule | company costs outside segment profit, cash only: Automatic rule (auto-reported-v 1): annual sum of line EBIT minus consolidated EBIT; zero suppresses duplicate corporate costs after allocation; grows with the lines' revenue SEC companyAnnual 2025-12-31; 0001628280-26-010185 |
| WACCDiscount rates | 7.75% | Rule | methodology §4.5: market-weighted WACC, not rounded FRED DGS10 2021-10-20..2026-10-21 |
| Cost of equityDiscount rates | 8.45% | Rule | r_f 3.87% (5-year average 10-year Treasury yield 3.87% (spot 5.13% on 2026-10-21)) + β 0.92 = 0.8 floor relevered for debt/equity 0.18 (§4.5 leverage rule) × 5%, rounded to 0.01% (1bp) 60 monthly returns vs SPY, 2021-09..2026-09 (adjusted closes) |
| Tax rateDiscount rates | 21.0% | Rule | Automatic rule (auto-reported-v 1): uniform tax-rate default; no verified effective tax rate in evidence Valuation methodology §9; Automatic estimation rules · Read methodology ↗ |
| Cash and short-term investmentsBalance sheet | $5.6B | Reported | cash, cash equivalents and short-term investments; use consolidated short-term investment total once, including all security classes sec.gov ↗ |
| BorrowingsBalance sheet | $32.6B | Reported | borrowings due within a year plus long-term borrowings us-gaap:LongTermDebtCurrent · 0001628280-26-050134 + us-gaap:LongTermDebtNoncurrent · 0001628280-26-050134 |
| Finance leasesBalance sheet | $0.0B | Reported | no finance lease liability reported balance sheet 2026-06-30 |
| Minority interestsBalance sheet | $0.7B | Reported | noncontrolling interests at book value us-gaap:MinorityInterest · 0001628280-26-050134 (filed 2026-07-28) |
| SharesBalance sheet | 1.730B | Reported | shares outstanding as of 2026-06-30 cover page of 10-Q 0001628280-26-050134 |
| Dividends per yearShareholders | $4.2B | Reported | Automatic rule (auto-reported-v 1): latest annual dividend per share held flat × 1.730B shares SEC companyAnnual 2025-12-31; 0001628280-26-010185 |
Research notes
- share-count comparison: 1.742981B quarter 2026-04-01..2026-06-30 · 0001628280-26-050134; point-in-time denominator retained
- unallocated company costs: $3.7B a year (8.5% of trailing revenue), growing with the lines, valued as one negative business
- cost of equity 8.45% (β 0.92 = 0.8 floor relevered for debt/equity 0.18 (§4.5 leverage rule)), WACC 7.8%
- §4.5 leverage: D/E 0.184, net debt/EBITDA 2.92, β_lev 0.916, β 0.800 → 0.916; D $32.61B, E $177.38B, cash $5.60B, base EBITDA $9.24B
- Nutritional Products: FY2030 margin set to 18.4% instead of 22.4% (§4.3 E2: 0.0000 points = 4pp × clamp((CAGR − 1.5%) / 2%, 0, 1); revenue CAGR 0.5% to FY2030; no cited expansion evidence)
Automatic estimate: reported data and uniform rules only; not reviewed by an analyst. This is a research model, not investment advice. Automatic rules (auto-reported-v1) read SEC reported facts; deterministic code applies the samepublished rules to every company and checks the result. Inputs may contain errors; follow the source links before relying on them. Read our valuation methodology →