Home / Biopharma / Stocks Carrying Position in Ratio Analysis: AbbVie Inc. (NYSE:ABBV), Johnson & Johnson (NYSE:JNJ)

Stocks Carrying Position in Ratio Analysis: AbbVie Inc. (NYSE:ABBV), Johnson & Johnson (NYSE:JNJ)

AbbVie Inc. (NYSE:ABBV) runs in leading trade, it are lagging behind -0.96% to trade at $66.74. ABBV attains analyst recommendation of 2.30 on scale of 1-5 with week’s performance of 1.58%.

To find out the technical position of ABBV, it holds price to book ratio of 19.42 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 11.87, and price to earnings ratio calculated as 19.32. The price to earnings growth ration calculated as 1.15. ABBV is presenting price to cash flow of 13.67 and free cash flow concluded as 26.68.

EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 185.20%, and looking further price to next year’s EPS is 18.14%. While take a short look on price to sales ratio, that was 4.42 and price to earning ration of 19.32 attracting passive investors.

Johnson & Johnson (NYSE:JNJ) kept active in under and overvalue discussion, JNJ holds price to book ratio of 4.63 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 22.79, which is authentic method to judge but not universal for all situation.

Fundament/ News Factor in Focus

Taking look on ratio analysis, JNJ has forward price to earnings ratio of 17.20, compare to its price to earnings ratio of 22.79. Adding one more ration to find detail valuation of security, price to earnings growth ration that stands at 3.49. The co is presenting price to cash flow as 7.89 and while calculating price to free cash flow it concluded at 112.64, the low single digit may indicate stock is undervalued and vise versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.

The firm has price volatility of 0.60% for a week and 0.74% for a month. Its beta stands at 0.62 times. Narrow down four to firm performance, its weekly performance was -1.08% and monthly performance was -0.56%.


About Devon Leftovich

Devon Leftovich is an entrepreneur. He has been writing and editing professionally for over six years. He is admin editor and senior content writer of SWR. However, he has determined to give investors something rare, a dignified partner who can manage money with integrity and a clear conscience about the degree of due diligence behind investment decisions. He said, "I love the financial world because it is like one big puzzle and I hope we the SWR help each other out to solve the puzzle to help us realize our dreams." Interests: Analysis of different Companies; including news and analyst rating updates. He performs analysis of Companies and publicizes important information for investor/traders community. Stocks long-term and short-term holding views, Tech Stocks

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