{"id":16729,"date":"2026-02-23T20:20:07","date_gmt":"2026-02-23T20:20:07","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/16729\/"},"modified":"2026-02-23T20:20:07","modified_gmt":"2026-02-23T20:20:07","slug":"is-abb-swxabbn-still-attractively-priced-after-its-strong-multi-year-share-price-run","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/16729\/","title":{"rendered":"Is ABB (SWX:ABBN) Still Attractively Priced After Its Strong Multi Year Share Price Run"},"content":{"rendered":"\n

Find winning stocks<\/a> in any market cycle. Join 7 million investors using Simply Wall St’s investing ideas for FREE.<\/p>\n

If you are wondering whether ABB is still reasonably priced after a strong run, this article walks through what the current share price could imply about value.<\/p>\n

The stock closed at CHF69.80 recently, with a 1.2% decline over the last 7 days, a 16.8% gain over 30 days, 14.0% year to date, 42.9% over 1 year, 138.4% over 3 years and 209.3% over 5 years.<\/p>\n

Recent headlines around ABB have focused on its position as a major industrial and automation company, with ongoing interest in how it is positioned in areas like electrification and robotics. These factors can influence how investors think about growth and risk, and this broader attention helps frame why the strong multi year share price performance and recent pullback matter for valuation.<\/p>\n

ABB currently has a valuation score of 1 out of 6. In this article we will look at what different valuation approaches say about that, then finish by looking at a broader way to think about what the market might be pricing in.<\/p>\n

ABB scores just 1\/6 on our valuation checks. See what other red flags we found in the full valuation breakdown<\/a>.<\/p>\n

A Discounted Cash Flow, or DCF, model takes estimates of a company\u2019s future cash flows and discounts them back to today using a required rate of return, to give an estimate of what the business might be worth per share right now.<\/p>\n

For ABB, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about US$4.58b. Analyst inputs from 2026 to 2030 are combined with further extrapolated estimates out to 2035 by Simply Wall St, with projected free cash flow of US$7.58b in 2030 and a series of discounted values provided for each year.<\/p>\n

Putting all of those discounted cash flows together gives an estimated intrinsic value of US$62.23 per share. Compared with the recent share price of CHF69.80, the DCF output suggests ABB is about 12.2% overvalued on this model.<\/p>\n

Result: OVERVALUED<\/p>\n

Our Discounted Cash Flow (DCF) analysis suggests ABB may be overvalued by 12.2%. Discover 226 high quality undervalued stocks<\/a> or create your own screener<\/a> to find better value opportunities.<\/p>\n

\"ABBN<\/a> ABBN Discounted Cash Flow as at Feb 2026 <\/p>\n

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for ABB.<\/a><\/p>\n

For a profitable company like ABB, the P\/E ratio is a useful way to gauge what you are paying for each unit of current earnings. It gives a quick sense of how the market is weighing ABB\u2019s earnings profile against other opportunities.<\/p>\n

A \u201cnormal\u201d or \u201cfair\u201d P\/E tends to be higher when investors expect stronger earnings growth or see the business as relatively resilient, and lower when growth expectations are modest or risks feel more elevated. That is why context matters when you look at a single number.<\/p>\n

ABB currently trades on a P\/E of 35.83x, compared with an Electrical industry average of about 31.31x and a peer group average of 30.85x. Simply Wall St\u2019s Fair Ratio for ABB is 40.34x, which is a proprietary estimate of the P\/E that would be consistent with factors such as ABB\u2019s earnings growth profile, margins, size and risk characteristics.<\/p>\n

Because the Fair Ratio adjusts for these company specific features, it can be more informative than a simple comparison with peers or the industry average. On this measure, ABB\u2019s current 35.83x P\/E sits below the 40.34x Fair Ratio, which indicates that the shares screen as undervalued on this metric.<\/p>\n

Result: UNDERVALUED<\/p>\n

\"SWX:ABBN<\/a> SWX:ABBN P\/E Ratio as at Feb 2026 <\/p>\n

P\/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 100 top founder-led companies<\/a>.<\/p>\n

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simple stories you build around ABB that connect your view of its future revenues, earnings and margins to a fair value, which you can then compare to today\u2019s price.<\/p>\n

On Simply Wall St\u2019s Community page, Narratives let you set your own assumptions, link ABB\u2019s business story to a forecast, and then see a Fair Value that updates automatically when fresh information arrives, such as news, earnings or new analyst price targets.<\/p>\n

For ABB right now, one investor might align with a more cautious view that points to a Fair Value around CHF37.92, while another might lean toward a more optimistic view closer to CHF63.81. Narratives make these different perspectives transparent so you can decide where you sit and whether the current price looks high, low or about right to you.<\/p>\n

For ABB however we will make it really easy for you with previews of two leading ABB Narratives:<\/p>\n

These are investor built stories that tie specific revenue, earnings and valuation assumptions to a Fair Value, so you can quickly see which one feels closer to your own view.<\/p>\n

\ud83d\udc02 ABB Bull Case<\/p>\n

Fair Value: CHF78.40<\/p>\n

Implied undervaluation vs last close: about 10.9% below this Fair Value<\/p>\n

Assumed annual revenue growth: 10.40%<\/p>\n

Assumes strong demand across electrification, data centers and grid upgrades, supported by a record order pipeline and ongoing margin improvement.<\/p>\n

Expects the planned Robotics spin off, local manufacturing and a shift toward digital services to support higher profit margins and a larger earnings base.<\/p>\n

Builds in higher earnings by 2028, a P\/E of 27.0x on those earnings and share count reductions, with a bullish Fair Value of CHF63.81 used to frame upside compared with consensus.<\/p>\n

\ud83d\udc3b ABB Bear Case<\/p>\n

Fair Value: CHF62.40<\/p>\n

Implied overvaluation vs last close: about 11.9% above this Fair Value<\/p>\n

Assumed annual revenue growth: 7.88%<\/p>\n

Assumes solid but more moderate revenue and margin trends, with support from electrification, automation and digital offerings, and a large order backlog.<\/p>\n

Builds in risks around weaker end markets, competition in areas like robotics and China, and sensitivity to infrastructure and data center spending.<\/p>\n

Uses earnings of $5.5b by 2028, a 24.1x P\/E and share buybacks to arrive at a consensus price target of CHF51.11, which sits slightly below the current share price.<\/p>\n

Both narratives rely on concrete numbers, not vague stories, so they can be a useful way for you to test whether today\u2019s CHF69.80 price lines up with your own expectations for ABB\u2019s growth, margins and risk. If you want to see how other investors are framing the upside and downside, Curious how numbers become stories that shape markets? Explore Community Narratives<\/a> can give you more versions of the ABB story to compare against your own.<\/p>\n

Do you think there’s more to the story for ABB? Head over to our Community to see what others are saying!<\/a><\/p>\n

\"SWX:ABBN<\/a> SWX:ABBN 1-Year Stock Price Chart <\/p>\n

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.<\/p>\n

Companies discussed in this article include ABBN.SW<\/a>.<\/p>\n

Have feedback on this article? Concerned about the content? Get in touch<\/a> with us directly. Alternatively, email editorial-team@simplywallst.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St’s investing ideas for…\n","protected":false},"author":2,"featured_media":668,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[130],"tags":[232,1103,2125,1104,1105,3794,842,3378],"class_list":{"0":"post-16729","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-abb","8":"tag-abb","9":"tag-dcf","10":"tag-earnings-growth","11":"tag-fair-value","12":"tag-free-cash-flow","13":"tag-future-cash-flows","14":"tag-share-price","15":"tag-simply-wall-st"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/16729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=16729"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/16729\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/668"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=16729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=16729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=16729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}