AbbVie

Methodology

AbbVie's patent cliffs and pipeline transitions make this calculation sensitive to earnings normalization assumptions. Using peak Humira-driven earnings overstates long-term value, while trough transitional earnings may understate newer drug potential. The method works best when carefully adjusting for product lifecycle stages rather than using current reported figures.

Methodology

AbbVie often trades at low PEG ratios reflecting market concerns about patent expirations and pipeline execution risks. However, low ratios can signal opportunity if newer immunology drugs successfully replace blockbuster revenue or may reflect justified skepticism. Compare to peers facing similar patent dynamics to gauge whether the discount is warranted.

Methodology

AbbVie's substantial dividend yield makes yield-adjusted metrics critical for evaluating total return potential. The company maintains aggressive dividend growth even through major patent transitions, signaling management confidence in underlying cash generation. PEGY better captures AbbVie's appeal as a high-yield pharma play where income significantly enhances investment returns.