AbbVie Inc.

Where It Passes

Where It Falls Short

• Valuation0% pass✗ 28▾

  All 13 investors flag ABBV's valuation

  Price / 3-yr avg EPS118.5x

  ✗Graham<= 15x

  Price-to-Book Ratio

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 125.0x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value2.6%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=2.6%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS125.0x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)27.4x

  ✗Dreman< 8x

  Price / Book Value per ShareN/A (negative BVPS)

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=125.0x

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=125.0x, FCF Yield=3.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=125.0x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-689.9% (IV=$37.35 vs Price=$295.03)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share29.3x

  ✗Ackman<= 25

  Price vs. Trailing Low160% of trailing low ($183.90)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+1.98%; #2738/6340 (top 43.2%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization-0.0088; #5336/6449 (top 82.7%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS125.0x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E0.00

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-125.0%

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.1266; #4191/5247 (top 79.9%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+3.62%; #1901/4519 (top 42.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+41.88%; #773/6202 (top 12.5%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 6▾

  ABBV overvalued: all 6 models price fair value below $295.03 (median $60.18)

  Greenblatt fair value$55.06

  ✗Greenblatt-435.8% margin vs $295.03

  Dreman fair value$37.35

  ✗Dreman-689.9% margin vs $295.03

  Munger fair value$186.02

  ✗Munger-58.6% margin vs $295.03

  Marks fair value$58.71

  ✗Marks-402.5% margin vs $295.03

  Ackman fair value$156.24

  ✗Ackman-88.8% margin vs $295.03

  Templeton fair value$61.65

  ✗Templeton-378.6% margin vs $295.03
• Debt & Leverage8% pass✓ 1✗ 14▾

  11 of 12 flag ABBV's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current AssetsLT Debt $64.5B vs NCA $-14.2B

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: N/A (negative equity), IC: 7.1x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / EquityN/A (negative equity)

  ✗Lynch< 0.33

  Cash - Long-term Debt$-59.3B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change49.45% -> 48.15%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.87

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt LevelsN/A (non-positive equity)

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=5.2x, D/EBITDA=N/A (D&A unavailable)

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)

  ✗AsnessTop 30% of eligible cross-section
• Profitability13% pass✓ 13✗ 22▾

  14 of 16 flag ABBV's profitability — Graham, Buffett, Lynch +11 more

  Positive EPS (10 years)15/15 years positive

  ✓GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)-7.7%

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)15/15 years positive

  ✓BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)70.9%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)24.6% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)0.44

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 125.0x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-2.8%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROEN/A (negative equity)

  ✗Lynch> 15%

  EBIT / Enterprise Value2.6%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=2.6%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets3.15%

  ✓PiotroskiROA > 0

  ROA Change YoY3.17% -> 3.15% (delta: -0.01%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=14.21%, ROA=3.15%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY70.0% -> 70.2%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue19.4%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity

  ✗Dreman> 12%

  Margin of SafetyP/E=125.0x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity81.4% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-689.9% (IV=$37.35 vs Price=$295.03)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency15/15 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue32.2%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity

  ✗Ackman>= 15%

  5-Year EPS CAGR-2.8% CAGR over 5 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend23.5% (2023) -> 24.6% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 62.4% -> 70.2%, operating margin 23.5% -> 24.6%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+1.98%; #2738/6340 (top 43.2%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+32.07%; #1316/3702 (top 35.5%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0241; #1657/5884 (top 28.2%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-2.8% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years10/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Growth13% pass✓ 3✗ 10▾

  7 of 8 flag ABBV's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)-7.7%

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 125.0x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-2.8%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 7.4% vs Rev: 10.7%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$2.18 (2011) -> $2.36 (2025)

  ✓DremanPositive over recent years

  EPS CAGR0.6% CAGR over 14 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency15/15 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth3.7%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency2/5 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR-2.8% CAGR over 5 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 62.4% -> 70.2%, operating margin 23.5% -> 24.6%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR6.0%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-2.8% over 5 years

  ✗Neff7%-20% annualized
• Verdicts17% pass✓ 2✗ 10▾

  Split decision: 10 FAIL · 4 NEUTRAL · 2 PASS

  Overall verdict

  ✗GrahamFAIL (2/9)✓BuffettPASS (4/9)✗LynchFAIL (1/7)•GreenblattNot ranked•PiotroskiNEUTRAL (F-Score 7)✗DremanFAIL (3/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)✗MarksFAIL (2/5)✗AckmanFAIL (3/9)✗TempletonFAIL (3/8)•SleepNEUTRAL (4/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (3/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow40% pass✓ 5✗ 7▾

  6 of 10 flag ABBV's cash flow — Buffett, Lynch, Dreman +3 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing$18.9B

  ✗LynchPositive and growing

  Operating Cash Flow$19.0B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=14.21%, ROA=3.15%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)27.4x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=125.0x, FCF Yield=3.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive15/15 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap3.6%

  ✗Ackman>= 4%

  Price / FCF per Share29.3x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency15/15 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$18.9B

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+3.62%; #1901/4519 (top 42.1%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency50% pass✓ 6✗ 5▾

  4 of 8 pass — Graham, Greenblatt, Dreman +1 more object

  Current Ratio0.87

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)17.4%

  ✓Buffett> 10%

  ROIC - WACC+7.4%

  ✓BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)N/A (invested capital <= 0)

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.66 -> 0.67

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.42x -> 0.46x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities0.87

  ✗Dreman> 1.5

  Return on Invested Capital22.0%

  ✓Munger> 15%

  ROIC (high and growing)FY2023: ROIC=14.4%; FY2024: ROIC=10.2%; FY2025: ROIC=19.3%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC0.0% (RR=0% x ROIC=22.0%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)4/5 years above 12% (latest 19.3%)

  ✓SleepROIC > 12% in a majority of years