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AbbVie (NYSE:ABBV) GF Value Rank

: 3 (As of Today)
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AbbVie has the GF Value Rank of 3.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Drug Manufacturers - General subindustry, AbbVie's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Drug Manufacturers industry and Healthcare sector, AbbVie's GF Value Rank distribution charts can be found below:

* The bar in red indicates where AbbVie's GF Value Rank falls into.

AbbVie GF Value Rank Related Terms

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AbbVie (NYSE:ABBV) Business Description

1 North Waukegan Road, North Chicago, IL, USA, 60064-6400
AbbVie is a pharmaceutical firm with a strong exposure to immunology and oncology. The firm's top drug, Humira, represents close to half of the company's current profits. The company was spun off from Abbott in early 2013. The recent acquisition of Allergan adds several new drugs in aesthetics and women's health.
Kevin K Buckbee officer: SVP, Controller 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL 60064
Perry C Siatis officer: EVP, GC and Secretary 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL 60064
Scott T Reents officer: SVP, Chief Financial Officer 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL 60064
Elaine K. Sorg officer: Sr. V.P., U.S. Commercial Ops. 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL 60064
Carrie C Strom officer: SVP & Pres Global Allerg Aesth 1 N. WAUKEGAN ROAD, NORTH CHICAGO IL 60064
Edward J Rapp director 100 NE ADAMS STREET, PEORIA IL 61629
Edward M Liddy director 2775 SANDERS ROAD, NORTHBROOK IL 60062-6127
Robert J Alpern director YALE SCHOOL OF MEDICINE, 333 CEDAR STREET, C203 SHM, NEW HAVEN CT 06520
Timothy J. Richmond officer: EVP, Chief HR Officer 1 N. WAUKEGAN ROAD, NORTH CHICAGO IL 60064
Thomas J Hudson officer: SVP, R&D and CSO 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL 60064
Nicholas Donoghoe officer: SVP, Enterprise Innovation 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL 60064
Jeffrey Ryan Stewart officer: SVP, US Commercial Operations 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL 60064
Brian L Durkin officer: VP, Controller 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL 60064
Rebecca B Roberts director 1000 LOUISIANA, SUITE 5800, HOUSTON TX 77002
Melody B Meyer director 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL 60064