AbbVie's Stock Valuation Multiple Widens Despite Strong Revenue Growth

AbbVie's stock has outperformed its peers in the past year, but its valuation multiples are higher than those of other companies in the same group. According to a recent analysis, AbbVie's stock returned 24.9% over the past twelve months, which is lower than Johnson & Johnson's 53.9% return and Eli Lilly's 50.6% return. However, AbbVie's revenue growth was higher at 10.4%, second only to Eli Lilly among its peers.

The company's immunology drugs, SKYRIZI and RINVOQ, were major contributors to its revenue growth, with SKYRIZI accounting for nearly a third of AbbVie's $17 billion quarter. However, the company also faces risks, including the planned purchase of Apogee Therapeutics, which is expected to issue long-term debt to pay for the acquisition.

AbbVie's valuation multiples are higher than those of its peers, with a price-to-earnings ratio of 71.5 compared to Johnson & Johnson's 30.5 and Eli Lilly's 37.5. However, if we use AbbVie's adjusted earnings guide for 2026, the company's valuation multiple drops to around 18 times.