AbbVie Stock Traded at 71.5 PE Ratio Raises Valuation Concerns

AbbVie's (ABBV) stock has returned 24.9% over the past twelve months, but its revenue growth of 10.4% and operating profit margin of 33.9% have not kept pace with other pharmaceutical companies in its peer group.

Johnson & Johnson (JNJ), for example, grew revenue by 8.1% and achieved an operating margin of 26.8%, while its stock returned 53.9%. JNJ trades at a PE ratio of 30.5, significantly lower than AbbVie's 71.5.

AbbVie's two immunology drugs, SKYRIZI and RINVOQ, accounted for nearly all of the company's revenue growth in the second quarter of 2026. However, management has trimmed its earnings guidance for the year due to planned expenses from the acquisition of Apogee Therapeutics.

The company expects to issue long-term debt to pay for Apogee and is relying on continued growth from SKYRIZI to offset these costs. AbbVie's forward valuation puts it at a significant premium compared to its peers, raising questions about whether the stock is overpriced.