AbbVieXSWX:ABBV 65 Return-on-Tangible-Asset is 5.78% as of Mar. 2026, which is 72% below its 10-year median of 20.98. 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 1,005 Drug Manufacturers companies, AbbVie ranks better than 71.54% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. AbbVie's annualizedNet Income for the quarter that ended in Mar. 2026 was CHF2,189 Mil. AbbVie's average total tangible assets for the quarter that ended in Mar. 2026 was CHF37,891 Mil. Therefore, AbbVie's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 5.78%.
The historical rank and industry rank for AbbVie's Return-on-Tangible-Asset or its related term are showing as below:
XSWX:ABBV'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 8.02 Med: 20.98 Max: 31.72
Current: 8.02
During the past 13 years, AbbVie's highest Return-on-Tangible-Asset was 31.72%. The lowest was 8.02%. And the median was 20.98%.
XSWX:ABBV's Return-on-Tangible-Asset is ranked better than 71.54% of 1005
companies
in the Drug Manufacturers industry
Industry Median: 3.16
vs XSWX:ABBV: 8.02
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
AbbVie Return-on-Tangible-Asset Related Terms
AbbVie Return-on-Tangible-Asset Historical Data
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The historical data trend for AbbVie's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Drug Manufacturers - General subindustry, AbbVie's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, AbbVie's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where AbbVie's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 5.78% mean?
AbbVie (XSWX:ABBV) has a Return-on-Tangible-Asset of 5.78% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on AbbVie and its competitors. This is 72% below median its historical median of 20.98. Over the past decade, AbbVie's Return-on-Tangible-Asset has ranged from 8.02 to 31.72. According to the industry distribution chart, AbbVie ranks #286 out of 1005 companies in the Drug Manufacturers industry, placing it in the top 28.5%.
Is AbbVie's Return-on-Tangible-Asset too high?
AbbVie's current Return-on-Tangible-Asset of 5.78% is 72% below median its 10-year median of 20.98. Over the past 10 years, this metric has ranged from a low of 8.02 to a high of 31.72. The Drug Manufacturers industry median Return-on-Tangible-Asset is 3.16. AbbVie's value of 5.78% is 82.9% above this industry median. Based on the distribution chart, AbbVie ranks #286 out of 1005 companies in the Drug Manufacturers industry, which is above the industry midpoint. 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 Return-on-Tangible-Asset compare to MRK and JNJ?
According to the Drug Manufacturers industry distribution chart, AbbVie ranks #286 out of 1005 companies for Return-on-Tangible-Asset. This puts AbbVie in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.16. AbbVie's value of 5.78% is 82.9% above this benchmark. Historically, AbbVie's own Return-on-Tangible-Asset has ranged from 8.02 to 31.72 over the past decade. While the company's 10-year median is 20.98 vs. the industry median of 3.16, 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 Return-on-Tangible-Asset for a Drug Manufacturers company?
The median Return-on-Tangible-Asset among Drug Manufacturers companies is 3.16, based on 1,005 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AbbVie's current Return-on-Tangible-Asset of 5.78% is 82.9% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on AbbVie and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Asset is 3.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AbbVie's current Return-on-Tangible-Asset is 5.78%, which is 72% below median its own 10-year median of 20.98. 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 CHF206.75 — trading 23.3% above its estimated fair value. The current Return-on-Tangible-Asset is 5.78%, which is 72% below median its 10-year median of 20.98 and 82.9% above the Drug Manufacturers industry median of 3.16. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For AbbVie (XSWX:ABBV), the current Return-on-Tangible-Asset is 5.78% 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 CHF206.75 is trading 23.3% above its estimated GF Value™ of CHF167.66.
GuruFocus considers AbbVie to be Modestly Overvalued.
Key valuation signals for XSWX:ABBV:
Return-on-Tangible-Asset: 5.78% (72% below median its 10-year median of 20.98)
GF Value™: CHF167.66 vs. price of CHF206.75 (23.3% above fair value)
Industry Position: 82.9% above the Drug Manufacturers median (#286 of 1005)
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
Get the complete analysis for XSWX:ABBV
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