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A look at a High Market Cap Stock: ABB Ltd., ABB

ABB Ltd., ABB is in the exchange NYSE and its industry is Diversified Machinery in the sector of Industrial Goods. Based in Switzerland, ABB Ltd., ABB  has a market cap of 45261.33. Since its IPO date on the 4/6/2001, ABB Ltd., ABB performance year to date is 19.65%. Today ABB Ltd., ABB has gained 0.20%, with a current price of 20.42.

Ownership of the company is *TBA for insider ownership while institutional ownership is 3.10%. The management of the company have seen the company have a payout ratio of 95.30%. Return of assets are at 4.00%, with return on investment at 10.30%.

In terms of debt levels and profit levels, ABB Ltd., ABB is seeing a long-term debt/equity of 0.47. While Total debt/equity is 0.57. With a profit margin of 4.90%, this is combined with a gross margin of 28.30%, and operating margin of 7.80%. ABB Ltd. ability to meet debt levels, with a current ratio of 1.4, while the quick ratio is 1.1.

For the last year ABB Ltd., ABB has seen a EPS growth of -22.70%. A performance for the year of 12.72%. The 52-week high is -10.91%, and the 52-week low is 35.05%. The average volume for ABB Ltd., ABB is 714858.

With a target price of 20.79, can ABB Ltd., ABB reach this target? Looking at the value indicators of ABB Ltd., ABB. ABB Ltd. has a P/E of 26.5 and a forward P/E of 18.23. Perhaps the more useful indicator than P/E, is PEG which has a value of 4.27. ABB Ltd. also has a P/S and a P/B of 1.33 and 3.23 respectively. For P/cash, ABB Ltd. has a value of 8.44, while it is 12.76 for P/free cash flow.

At the current price of 20.42, ABB Ltd. has a dividend yield of 3.68%. We see a return on equity of 12.10%.

Looking more long-term ABB Ltd., is projected to get an EPS growth for the next five years of 6.20%. In the short-term an EPS growth of 15.85% in the next year is forecasted. This is after a EPS growth of -22.70% for this year and for the last five years a -4.90% growth has been seen.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

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