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Is this Large Market Cap Stock target price reasonable for AbbVie Inc. (NYSE:ABBV)?

The company in question is, AbbVie Inc. (NYSE:ABBV) currently with a stock price of 64.61 (0.76% today). The market cap for AbbVie Inc. is 105072.66, and is in the sector Healthcare, and Drug Manufacturers – Major industry. The target price for AbbVie Inc. is 71.37. Currently AbbVie Inc. is trading with a P/E of 18.52, and a forward P/E of 11.33. Average volume for AbbVie Inc. is 7602.6 and so far today it is 5936289.

Performance in the last year for AbbVie Inc. has been 12.28%. For EPS growth, AbbVie Inc. has seen a growth of 185.20%, and is looking to grow in the next year to 18.60%. More long term stats show that EPS growth has been 3.50% over the last five years and could be 16.25% for the next five years. AbbVie Inc. has seen sales growth quarter over quarter at 17.80%, with EPS growth quarter over quarter at 17.90%. The 20-day simple moving average is 0.16%, with the 200-day simple moving average coming to 9.38%.

Since the IPO date for AbbVie Inc. on the 1/2/2013, AbbVie Inc. has seen performance year to date to be 12.25%. With AbbVie Inc. trading at 64.61, the dividend yield is 3.53%, and the EPS is 3.49.

So could AbbVie Inc., be undervalued? Well as said before P/E is 18.52. The PEG is 1.14, P/S is 4.24 and the P/B is at 18.62. The P/cash is 13.13, with P/free cash flow at 25.63.

AbbVie Inc. ability to deal with debt shows that the current ratio is 1.8, and the quick ratio is 1.6. This is with long term debt/equity at 6.62, and total debt/equity at 6.71.

In terms of margins, AbbVie Inc. has a gross margin of 78.60%, an operating margin of 35.00% and a profit margin of 23.10%.Payout ratio for AbbVie Inc. is 63.30%. Return on assets come to 10.00% with return on investment coming to 16.90%.

Insider ownership for AbbVie Inc., is at 0.10% and institutional ownership comes to 71.90%. Outstanding shares are at 1626.26. While shares float is 1626.26. The float short is currently 2.95%, and short ratio is 6.31.

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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