Abbott LaboratoriesABT -0.04%80 Pretax Margin % is 12.98% as of Mar. 2026, which is 16% below its 10-year median of 15.49. GuruFocus rates ABT with a GF Score™ of 80/100 and a GF Value™ of $129.49 (Significantly Undervalued). Among 817 Medical Devices & Instruments companies, Abbott Laboratories ranks better than 82.01% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Abbott Laboratories Pretax Margin % Related Terms
Abbott Laboratories Pretax Margin % Historical Data
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The historical data trend for Abbott Laboratories's Pretax Margin % 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.
For the Medical Devices subindustry, Abbott Laboratories's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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.
Abbott Laboratories Pretax Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Abbott Laboratories's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Abbott Laboratories's Pretax Margin % 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.
Abbott Laboratories (ABT) has a Pretax Margin % of 12.98% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Abbott Laboratories and its competitors. This is 16% below median its historical median of 15.49. Over the past decade, Abbott Laboratories' Pretax Margin % has ranged from 6.78 to 19.10. According to the industry distribution chart, Abbott Laboratories ranks #147 out of 817 companies in the Medical Devices & Instruments industry, placing it in the top 18%.
Is Abbott Laboratories' Pretax Margin % too high?
Abbott Laboratories' current Pretax Margin % of 12.98% is 16% below median its 10-year median of 15.49. Over the past 10 years, this metric has ranged from a low of 6.78 to a high of 19.10. The Medical Devices & Instruments industry median Pretax Margin % is 2.43. Abbott Laboratories' value of 12.98% is 434.2% above this industry median. Based on the distribution chart, Abbott Laboratories ranks #147 out of 817 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Abbott Laboratories has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Abbott Laboratories' Pretax Margin % compare to SYK and MDT?
According to the Medical Devices & Instruments industry distribution chart, Abbott Laboratories ranks #147 out of 817 companies for Pretax Margin %. This places Abbott Laboratories in the top 18% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 2.43. Abbott Laboratories' value of 12.98% is 434.2% above this benchmark. Historically, Abbott Laboratories' own Pretax Margin % has ranged from 6.78 to 19.10 over the past decade. While the company's 10-year median is 15.49 vs. the industry median of 2.43, Abbott Laboratories 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 Pretax Margin % for a Medical Devices & Instruments company?
The median Pretax Margin % among Medical Devices & Instruments companies is 2.43, based on 817 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Abbott Laboratories's current Pretax Margin % of 12.98% is 434.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Abbott Laboratories and its competitors. For the Medical Devices & Instruments industry, the median Pretax Margin % is 2.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abbott Laboratories's current Pretax Margin % is 12.98%, which is 16% below median its own 10-year median of 15.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abbott Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Abbott Laboratories (ABT) is currently considered Significantly Undervalued. The stock's GF Value™ is $129.49, compared to a current price of $90.49 — trading 30.1% below its estimated fair value. The current Pretax Margin % is 12.98%, which is 16% below median its 10-year median of 15.49 and 434.2% above the Medical Devices & Instruments industry median of 2.43. Abbott Laboratories' overall GF Score™ is 80/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Abbott Laboratories (ABT), the current Pretax Margin % is 12.98% 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 Abbott Laboratories (ABT) Overvalued in 2026?
Based on GuruFocus' analysis, Abbott Laboratories stock appears to be undervalued.
The current stock price of $90.49 is trading 30.1% below its estimated GF Value™ of $129.49.
GuruFocus considers Abbott Laboratories to be Significantly Undervalued.
Key valuation signals for ABT:
Pretax Margin %: 12.98% (16% below median its 10-year median of 15.49)
GF Value™: $129.49 vs. price of $90.49 (30.1% below fair value)
Industry Position: 434.2% above the Medical Devices & Instruments median (#147 of 817)
No single metric tells the full story. See the ABT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abbott manufactures and markets cardiovascular and diabetes devices, adult and pediatric nutritional products, diagnostic equipment and testing kits, and branded generic drugs. Products include pacemakers, implantable cardioverter defibrillators, neuromodulation devices, coronary stents, catheters, infant formula, nutritional liquids for adults, continuous glucose monitors, and immunoassays and point-of-care diagnostic equipment. Abbott derives roughly 60% of sales outside the United States.
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