- Everyone talks about how attractive ABBV is, but I couldn't find a detailed DCF model on the stock here at SA.
- I decided to build such a model, taking into account the synergistic effect of the Allergan acquisition.
- I considered the prospects for each of AbbVie's new products, which led me to a projected 5-year revenue CAGR of 10.38%.
- Using fairly conservative assumptions, my DCF valuation model concluded that ABBV is currently significantly undervalued, given the stable dividend yield of ~4.50%.
- Therefore, I recommend ABBV to all value investors.
For further details see:
AbbVie Is A Bargain At The Current Price: DCF Valuation