AbbVieXSWX:ABBV 65 Debt-to-EBITDA is 4.93 as of Mar. 2026, which is 32% above its 10-year median of 3.74. GuruFocus rates XSWX:ABBV with a GF Score™ of 65/100 and a GF Value™ of CHF167.66 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 687 Drug Manufacturers companies, AbbVie ranks worse than 77.87% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for AbbVie's Debt-to-EBITDA or its related term are showing as below:
XSWX:ABBV'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.62 Med: 3.74 Max: 6.98
Current: 4.31
During the past 13 years, the highest Debt-to-EBITDA Ratio of AbbVie was 6.98. The lowest was 2.62. And the median was 3.74.
XSWX:ABBV's Debt-to-EBITDA is ranked worse than 77.87% of 687
companies
in the Drug Manufacturers industry
Industry Median: 1.66
vs XSWX:ABBV: 4.31
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
AbbVie Debt-to-EBITDA Related Terms
AbbVie Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for AbbVie's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:ABBV vs MRK, JNJ, AMGN: Debt-to-EBITDA Comparison
For the Drug Manufacturers - General subindustry, AbbVie's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AbbVie Debt-to-EBITDA vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, AbbVie's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where AbbVie's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
AbbVie (XSWX:ABBV) has a Debt-to-EBITDA of 4.93 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on AbbVie. This is 32% above median its historical median of 3.74. Over the past decade, AbbVie's Debt-to-EBITDA has ranged from 2.62 to 6.98. According to the industry distribution chart, AbbVie ranks #535 out of 687 companies in the Drug Manufacturers industry, placing it in the top 77.9%.
Is AbbVie's Debt-to-EBITDA too high?
AbbVie's current Debt-to-EBITDA of 4.93 is 32% above median its 10-year median of 3.74. Over the past 10 years, this metric has ranged from a low of 2.62 to a high of 6.98. The Drug Manufacturers industry median Debt-to-EBITDA is 1.66. AbbVie's value of 4.93 is 197% above this industry median. Based on the distribution chart, AbbVie ranks #535 out of 687 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, AbbVie has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does AbbVie's Debt-to-EBITDA compare to MRK and JNJ?
According to the Drug Manufacturers industry distribution chart, AbbVie ranks #535 out of 687 companies for Debt-to-EBITDA. This places AbbVie in the lower half of its industry. The industry median Debt-to-EBITDA is 1.66. AbbVie's value of 4.93 is 197% above this benchmark. Historically, AbbVie's own Debt-to-EBITDA has ranged from 2.62 to 6.98 over the past decade. While the company's 10-year median is 3.74 vs. the industry median of 1.66, AbbVie has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Drug Manufacturers company?
The median Debt-to-EBITDA among Drug Manufacturers companies is 1.66, based on 687 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AbbVie's current Debt-to-EBITDA of 4.93 is 197% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on AbbVie. For the Drug Manufacturers industry, the median Debt-to-EBITDA is 1.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AbbVie's current Debt-to-EBITDA is 4.93, which is 32% above median its own 10-year median of 3.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AbbVie stock overvalued right now?
Based on GuruFocus' analysis, AbbVie (XSWX:ABBV) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF167.66, compared to a current price of CHF207.55 — trading 23.8% above its estimated fair value. The current Debt-to-EBITDA is 4.93, which is 32% above median its 10-year median of 3.74 and 197% above the Drug Manufacturers industry median of 1.66. AbbVie's overall GF Score™ is 65/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For AbbVie (XSWX:ABBV), the current Debt-to-EBITDA is 4.93 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AbbVie (XSWX:ABBV) Overvalued in 2026?
Based on GuruFocus' analysis, AbbVie stock appears to be overvalued.
The current stock price of CHF207.55 is trading 23.8% above its estimated GF Value™ of CHF167.66.
GuruFocus considers AbbVie to be Modestly Overvalued.
Key valuation signals for XSWX:ABBV:
Debt-to-EBITDA: 4.93 (32% above median its 10-year median of 3.74)
GF Value™: CHF167.66 vs. price of CHF207.55 (23.8% above fair value)
Industry Position: 197% above the Drug Manufacturers median (#535 of 687)
No single metric tells the full story. See the XSWX:ABBV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AbbVie is a pharmaceutical firm with a strong exposure to immunology (with Humira, Skyrizi, and Rinvoq) and oncology (with Imbruvica and Venclexta). The company was spun off from Abbott in early 2013. The 2020 acquisition of Allergan added several new products and drugs in aesthetics, including Botox. The 2024 acquisitions of Cerevel (neuroscience) and ImmunoGen (oncology) help supplement AbbVie's portfolio.
65GF Score
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