One-glance verdict
Overvalued
$64.91 our estimate vs market $92.68
Wall Street consensus: $93.32 (43.8% higher than our fair-value estimate)
43% above our estimate, beyond the bull case
Fundamentals snapshot
ABB Ltd
ABBNY · PNK · Industrials · Electrical Equipment & Parts
Current price
$92.68
52-week range
$67.24 - $110.20
Market cap
$167.67B
Balance sheet
Healthy
66.62x Strong cushion
Net debt $3.29B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 9.5% last year.
- Reward Free cash flow was positive in 4/10 years.
- Reward Dividend yield is 1.3% with 24-year payout history.
- Risk Stock trades 35.8% above its 5-year average P/E.
What this company does
ABB Ltd
ABB Ltd sells electrical products and systems that help industries and infrastructure use power more efficiently, with money mainly coming from sales in Europe, the Americas, and Asia. This matters because their solutions are key to making things like factories and buildings greener and more automated. They offer everything from basic electrical components to complex automation systems that keep things running smoothly and reduce energy waste.
How the company got here
ABB Ltd. has a long history, tracing its roots back to 1883. It was formed through a series of mergers and acquisitions, most notably the 1988 merger of Sweden's ASEA and Switzerland's Brown Boveri. This combination created a global powerhouse in electrical engineering and automation. Over the decades, ABB has strategically evolved, divesting some businesses and focusing on core areas like electrification and automation to adapt to changing industrial landscapes and technological advancements.
What it actually does
Think of ABB as a company that makes the essential electrical and automation "brains" and "muscles" for factories, buildings, and transportation systems. They create the equipment that controls power, makes machines run efficiently, and helps industries operate smoothly and safely. Their products are often hidden behind the scenes, but they are crucial for everything from powering your home to running complex industrial processes and enabling electric vehicles.
Electrification
This segment is all about managing and distributing electricity. ABB provides everything from the circuit breakers in your home's electrical panel to large-scale equipment for power grids and renewable energy projects. They offer solutions that help ensure electricity is delivered reliably and efficiently, whether it's for a factory, a hospital, or a neighborhood. This is a significant part of ABB's business, providing the foundational electrical infrastructure for many sectors.
Motion
The Motion segment focuses on electric motors, drives, and generators. These are the components that make things move in industrial settings, like conveyor belts in factories or the propulsion systems in trains and ships. ABB's solutions in this area are designed to be energy-efficient, helping industries reduce their power consumption and contribute to a lower-carbon future. This segment is a key contributor to ABB's overall revenue.
Automation
This is ABB's most comprehensive segment, offering integrated solutions for controlling and optimizing industrial processes. It includes everything from the software that runs a factory floor to the sensors that measure temperature and pressure, and the robotic systems that perform tasks. ABB provides these automation and digital solutions to a wide range of industries, including oil and gas, chemicals, and marine, helping them improve efficiency, safety, and productivity. This segment represents a substantial portion of ABB's business.
What management is betting on now
ABB's current strategy heavily emphasizes sustainability and digitalization. Management is focused on developing and selling products and solutions that help customers reduce their environmental impact, such as energy-efficient motors and smart grid technologies. They are also investing in digital services and software that allow for remote monitoring, predictive maintenance (fixing equipment before it breaks), and overall optimization of industrial operations. This dual focus aims to position ABB as a leader in the transition towards more sustainable and technologically advanced industries.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2022 Q4
$525.00M
FY2023 Q4
$3.52B
Revenue
$32.23B
Net income
—
Diluted EPS
2.01
Operating cash flow
$4.29B
Free cash flow
$3.52B
Fetching…
Sources
Revenue
$29.45B
Net income
—
Diluted EPS
1.30
Operating cash flow
$1.29B
Free cash flow
$525.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $64.91 vs current price $92.68
Wall Street consensus is the average analyst price target: $93.32 (43.8% higher than our fair-value estimate).
Our most-likely fair value is $64.91 a share — about 30.0% below today's price of $92.68, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net debt $3.3B. Interest coverage 66.6x.
Net debt
$3.29B
Interest coverage
66.62x
ABB Ltd is healthier than 0 of 1 peers on balance-sheet leverage.
Healthy
Worse cushion
Baseline
Better cushion
ABBNY
BASELINE
ABB Ltd
Total debt $9.15B Interest coverage 66.62x This is the baseline the peer rows are being compared against.
What you should know
The case for and against ABBNY
3 Rewards
1 Risk
Rewards
-
Revenue grew 9.5% last year.
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 1.3% with 24-year payout history.
Risks
-
Stock trades 35.8% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
33.70x
Forward P/E
25.35x
P/B
42.32x
P/S
4.69x
EV/EBITDA
94.66x
PEG ratio
1.28x
Profitability
How much profit each dollar creates
Gross margin
40.2%
Operating margin
16.9%
Net margin
14.1%
ROE
32.6%
ROA
9.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.56x
Current ratio
1.43x
Quick ratio
0.82x
Total debt
$9.15B
Total cash
$5.86B
Growth
How the business has been compounding
Revenue TTM
$116.76B
Revenue 5Y CAGR
3.6%
EPS TTM
2.75
EPS 5Y CAGR
25.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$10.60B
Free CF TTM
$4.47B
FCF margin
3.8%
Dividend
Shareholder payout
Yield
1.3%
Payout ratio
43.4%
Last ex-div date
2026-03-24