Abbott Laboratories

Methodology

Abbott's diversified healthcare portfolio across devices, diagnostics, nutrition, and pharmaceuticals provides earnings stability that makes this calculation reliable. The recurring revenue from chronic disease devices and consumables creates predictable growth. However, COVID testing volatility temporarily distorted earnings, requiring normalization for meaningful fair value assessment.

Methodology

Abbott typically commands premium PEG ratios reflecting diversified revenue streams and aging demographic exposure. The continuous glucose monitoring franchise drives above-average growth for a mature healthcare company. Compare to peers like Johnson & Johnson and Medtronic to assess whether Abbott's growth-to-value balance is attractive within diversified med-tech.

Methodology

Abbott's modest but growing dividend makes yield-adjusted metrics moderately more relevant for conservative healthcare investors. The company balances capital allocation between dividends, organic growth investments, and strategic acquisitions. PEGY better captures total return for investors seeking dependable healthcare exposure combining both income and growth characteristics.