ABBOTT LABORATORIES

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 2✗ 26▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / 3-yr avg EPS22.3x

  ✗Graham<= 15x

  Price-to-Book Ratio3.6x

  ✗Graham<= 1.5x

  P/E x P/B80.50

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)3.53

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value3.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.1%, ROC=37.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS29.2x

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

  Price / (CFO / Shares)19.7x

  ✗Dreman< 8x

  Price / Book Value per Share3.6x

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

  Valuation ReasonablenessP/E=29.2x

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

  P/E or FCF YieldP/E=29.2x, FCF Yield=3.9%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=29.2x, P/B=3.6x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-48.5% (IV=$73.10 vs Price=$108.52)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share25.5x

  ✗Ackman<= 25

  Price vs. Trailing Low120% of trailing low ($90.79)

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

  Net income / market capitalization+2.50%; #2547/6340 (top 40.2%)

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

  Positive book equity / market capitalization+0.2715; #3828/6449 (top 59.4%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS29.2x

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

  (EPS CAGR % + Dividend Yield %) / P/E0.36

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

  Price / Tangible Book Value per Share8.35x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+62.1%

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

  Revenue / market capitalization+0.2566; #3527/5247 (top 67.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+3.60%; #1906/4519 (top 42.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+8.20%; #1957/6202 (top 31.6%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 9▾

  ABT overvalued: all 9 models price fair value below $108.52 (median $67.41)

  Graham fair value$50.12

  ✗Graham-116.5% margin vs $108.52

  Lynch fair value$30.78

  ✗Lynch-252.6% margin vs $108.52

  Greenblatt fair value$32.37

  ✗Greenblatt-235.2% margin vs $108.52

  Dreman fair value$73.10

  ✗Dreman-48.5% margin vs $108.52

  Munger fair value$69.87

  ✗Munger-55.3% margin vs $108.52

  Akre fair value$79.34

  ✗Akre-36.8% margin vs $108.52

  Marks fair value$44.35

  ✗Marks-144.7% margin vs $108.52

  Ackman fair value$70.43

  ✗Ackman-54.1% margin vs $108.52

  Templeton fair value$67.41

  ✗Templeton-61.0% margin vs $108.52
• Profitability19% pass✓ 13✗ 22▾

  13 of 16 flag ABT's profitability — Graham, Buffett, Lynch +10 more

  Positive EPS (10 years)30/30 years positive

  ✓GrahamPositive EPS every year for 10 years

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

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)30/30 years positive

  ✓BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)18.8%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)18.2% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

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

  Basic earnings-growth PEG (dividends excluded)3.53

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR8.3%

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

  ROE9.2%

  ✗Lynch> 15%

  EBIT / Enterprise Value3.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.1%, ROC=37.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets7.52%

  ✓PiotroskiROA > 0

  ROA Change YoY16.46% -> 7.52% (delta: -8.94%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=11.03%, ROA=7.52%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY55.4% -> 56.4%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue13.6%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity9.2%

  ✗Dreman> 12%

  Margin of SafetyP/E=29.2x, P/B=3.6x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity18.5% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-48.5% (IV=$73.10 vs Price=$108.52)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency30/30 years positive

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

  Operating Income / Revenue13.8%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity9.2%

  ✗Ackman>= 15%

  5-Year EPS CAGR8.3% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend16.2% (2023) -> 18.2% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 55.2% -> 56.4%, operating margin 16.2% -> 18.2%

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

  Net income / market capitalization+2.50%; #2547/6340 (top 40.2%)

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

  Gross profit / total assets+28.84%; #1500/3702 (top 40.5%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+9.21%; #1928/5226 (top 36.9%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0327; #2010/5884 (top 34.2%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR8.3% over 5 years

  ✓Neff7%-20% annualized

  Positive Diluted-EPS Years10/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts23% pass✓ 3✗ 10▾

  Split decision: 9 FAIL · 4 NEUTRAL · 3 PASS

  Overall verdict

  ✗GrahamFAIL (3/9)✓BuffettPASS (4/9)✗LynchFAIL (2/7)✗GreenblattRank #1221✓PiotroskiPASS (F-Score 5)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (2/5)✗AckmanFAIL (3/9)•TempletonNEUTRAL (6/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #1488/2370 (Top 62.8%))•NeffNEUTRAL (4/6)•SchlossNEUTRAL (4/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage25% pass✓ 5✗ 10▾

  9 of 12 flag ABT's debt & leverage — Graham, Buffett, Lynch +6 more

  LT Debt vs Net Current AssetsLT Debt $29.5B vs NCA $7.3B

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.61, IC: 6.7x

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

  Total Debt / Equity0.61

  ✗Lynch< 0.33

  Cash - Long-term Debt$-25.4B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change15.51% -> 11.41%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.45

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

  Total Debt / Shareholders' Equity0.61

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

  Debt Levels0.61

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

  Interest Coverage & Debt/EBITDAIC=14.8x, D/EBITDA=N/A (D&A unavailable)

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

  Total Debt / Shareholders Equity0.61

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.6106; #2684/4210 (top 63.8%)

  ✗AsnessTop 30% of eligible cross-section
• Efficiency25% pass✓ 3✗ 8▾

  6 of 8 flag ABT's efficiency — Graham, Piotroski, Dreman +3 more

  Current Ratio1.45

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)12.5%

  ✓Buffett> 10%

  ROIC - WACC+2.5%

  ✓BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)37.2%

  ✓Greenblatt> 25%

  Current Ratio Change YoY1.67 -> 1.58

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.52x -> 0.51x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.45

  ✗Dreman> 1.5

  Return on Invested Capital6.4%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=9.6%; FY2024: ROIC=8.7%; FY2025: ROIC=9.8%

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

  Reinvestment Rate x ROIC0.5% (RR=8% x ROIC=6.4%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)2/5 years above 12% (latest 9.8%)

  ✗SleepROIC > 12% in a majority of years
• Growth38% pass✓ 5✗ 8▾

  5 of 8 flag ABT's growth — Graham, Lynch, Dreman +2 more

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

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)3.53

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR8.3%

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

  Inventory Growth vs Revenue GrowthInv: 9.4% vs Rev: 10.0%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency30/30 years positive

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

  3yr Median Revenue Growth4.6%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency2/5 years with positive EPS growth

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

  5-Year EPS CAGR8.3% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 55.2% -> 56.4%, operating margin 16.2% -> 18.2%

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

  5-year Revenue CAGR5.1%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR8.3% over 5 years

  ✓Neff7%-20% annualized
• Cash Flow40% pass✓ 5✗ 7▾

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

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing$6.8B

  ✗LynchPositive and growing

  Operating Cash Flow$9.6B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=11.03%, ROA=7.52%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)19.7x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=29.2x, FCF Yield=3.9%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive18/18 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap3.6%

  ✗Ackman>= 4%

  Price / FCF per Share25.5x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency26/26 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$6.8B

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

  (Operating cash flow - capex) / market capitalization+3.60%; #1906/4519 (top 42.2%)

  ✗OshaughnessyTop 10% of eligible cross-section