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Is ABB Ltd.(NYSE: ABB), a large market cap stock a smart buy?

With a market cap of has a large market cap size. ABB Ltd. (NYSE: ABB) has been on the stock market since its IPO date on the 4/6/2001. ABB Ltd. is in the Diversified Machinery industry and Industrial Goods sector. Average volume for ABB Ltd., is 1904.3, and so far today it has a volume of 1189777. Performance year to date since the 4/6/2001 is 18.07%.

To help you determine whether ABB Ltd. is undervalued the following values will help you decide. P/E is 23.8 and forward P/E is 16.57. PEG perhaps more useful shows that ABB Ltd. has a value for PEG of 3.7. P/S ratio is 1.27 and the P/B ratio is 2.96. The P/Cash and P/Free cash flow is 7.32 and 14.09 respectively.

At the current price ABB Ltd. is trading at, 20.26 (0.77% today), ABB Ltd. has a dividend yield of 3.78%, and this is covered by a payout ratio of 0.00%. Earnings per share (EPS) is 0.85, and this is looking to grow in the next year to 19.02% after growing -22.70% this past year. EPS growth quarter over quarter is -7.60%, and -7.60% for sales growth quarter over quarter.

The number of shares outstanding is 2205.08, and the number of shares float is 2063.43. The senior management bring insider ownership to *TBA, and institutional ownership is at 3.60%. The float short is 0.27%, with the short ratio at a value of 2.96. Management has seen a return on assets of 4.50%, and also a return on investment of 10.30%.

The ability for ABB Ltd., to deal with debt, means it current ratio is 1.5, and quick ratio is 1.1. Long term debt/equity is 0.41 and total debt/equity is 0.52. In terms of margins, ABB Ltd. has a gross margin of 28.70%, with its operating margin at 8.50%, and ABB Ltd. has a profit margin of 5.40%.

The 52 week high is -2.52%, with 34.02% being its 52 week low. The 20 day simple moving average is 3.03% and the 200 day simple moving average is 11.39%.

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.


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Peter Clarke

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