{"id":35442,"date":"2026-03-20T05:38:18","date_gmt":"2026-03-20T05:38:18","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/35442\/"},"modified":"2026-03-20T05:38:18","modified_gmt":"2026-03-20T05:38:18","slug":"is-it-too-late-to-consider-abb-swxabbn-after-strong-five-year-share-price-gains","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/35442\/","title":{"rendered":"Is It Too Late To Consider ABB (SWX:ABBN) After Strong Five Year Share Price Gains?"},"content":{"rendered":"\n

Make better investment decisions<\/a> with Simply Wall St’s easy, visual tools that give you a competitive edge.<\/p>\n

If you are wondering whether ABB at around CHF66 is still offering value after a strong run, this article will walk you through what the current price might be implying about the company.<\/p>\n

ABB’s share price closed at CHF66.44, with returns of 0.0% over 7 days, a 4.4% decline over 30 days, 8.5% year to date, 38.5% over 1 year and 170.1% over 5 years, which understandably has investors asking what is already priced in.<\/p>\n

Recent news around ABB has focused on its position as a major industrial and automation player and how investors are thinking about its long term role in areas like electrification and automation. While the headlines often focus on growth themes, they also feed into changing views on risk and what a fair price for the stock might be.<\/p>\n

ABB currently has a valuation score of 1 out of 6. Next we will look at how different valuation approaches interpret that score and then finish with a way to think about value that goes beyond any single model.<\/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 DCF model takes estimates of a company\u2019s future cash flows and discounts them back to today\u2019s value, to arrive at an estimate of what the business might be worth 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 company\u2019s latest twelve month free cash flow is about US$4.6b. Analyst estimates are available for several years and Simply Wall St extrapolates beyond that, with projected free cash flow of US$7.6b in 2030 and a series of annual projections in between.<\/p>\n

When all of those future cash flows are discounted back to today using this model, the estimated intrinsic value comes out at US$62.22 per share. Compared to the current share price of CHF66.44, this implies ABB is around 6.8% overvalued on this DCF view, although the gap is relatively small.<\/p>\n

Result: ABOUT RIGHT<\/p>\n

ABB is fairly valued according to our Discounted Cash Flow (DCF)<\/a>, but this can change at a moment’s notice. Track the value in your watchlist<\/a> or portfolio<\/a> and be alerted on when to act.<\/p>\n

\"ABBN<\/a> ABBN Discounted Cash Flow as at Mar 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 see what you are paying for each unit of earnings. It quickly shows how the market is weighing the company\u2019s earnings profile against others.<\/p>\n

What counts as a \u201cnormal\u201d P\/E depends on how investors see growth potential and risk. Higher expected growth or lower perceived risk can justify a higher P\/E, while lower growth or higher risk usually points to a lower multiple.<\/p>\n

ABB currently trades on a P\/E of 33.45x, compared with an Electrical industry average of about 30.56x and a peer average of 29.25x. Simply Wall St also uses a proprietary \u201cFair Ratio\u201d for P\/E, which is 51.84x for ABB. This Fair Ratio is designed to be more tailored than a simple peer or industry comparison because it factors in earnings growth, profit margins, the company\u2019s industry, market cap and specific risks.<\/p>\n

When you compare ABB\u2019s current P\/E of 33.45x with the Fair Ratio of 51.84x, the stock screens as trading below that tailored level.<\/p>\n

Result: UNDERVALUED<\/p>\n

\"SWX:ABBN<\/a> SWX:ABBN P\/E Ratio as at Mar 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 98 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, a simple way for you to attach your own story about ABB to the numbers by linking what you believe about its future revenue, earnings and margins to a financial forecast and a Fair Value, and then comparing that Fair Value to the current price.<\/p>\n

On Simply Wall St\u2019s Community page, Narratives are an easy tool that millions of investors use to set out their view of a company, see the implied Fair Value that falls out of those assumptions, and then quickly judge whether the current price looks high or low against that view when deciding whether it might be a time to buy, hold or sell.<\/p>\n

Narratives also update automatically when new information such as ABB news, earnings or guidance is added to the platform, so your Fair Value estimate and the gap between price and value stay aligned with the latest data without you needing to rebuild a model each time.<\/p>\n

For ABB today, for example, one optimistic Narrative ties together assumptions that point to a Fair Value of about CHF77.78. A more cautious Narrative points to a Fair Value closer to CHF42.40. Your job is to decide which story feels closer to your own view, or to create your own version in between.<\/p>\n

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

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

Fair Value: CHF77.78<\/p>\n

Implied discount to this Fair Value: about 14.6% compared to the last close of CHF66.44<\/p>\n

Revenue growth assumption: 10.59% a year<\/p>\n

Backers of this view focus on data center demand, electrification and a record order pipeline as reasons ABB could deliver stronger revenue growth and higher margins than consensus expects.<\/p>\n

The Robotics spin off, the shift toward digital services and local manufacturing are seen as key drivers for higher margin, more recurring earnings and stronger customer loyalty over time.<\/p>\n

Risks in this story include deglobalization, intense competition in automation and robotics, exposure to cyclical end markets and execution around restructuring and spin offs.<\/p>\n

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

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

Implied premium to this Fair Value: about 6.5% compared to the last close of CHF66.44<\/p>\n

Revenue growth assumption: 7.88% a year<\/p>\n

This view accepts that ABB has a solid backlog and recurring revenues, but argues that the current price already reflects those positives, with only modest upside to analyst targets.<\/p>\n

Analysts behind this case see earnings growing, but with more moderate revenue and margin assumptions and a lower future P\/E multiple than in the bullish scenario.<\/p>\n

They highlight ongoing risks around weak end markets, pricing pressure in China and robotics, reliance on infrastructure and data center spending, and the potential for uneven profitability if some segments stay soft.<\/p>\n

These Narratives frame the current price against two different sets of assumptions. The key question for you is which story feels closer to how you see ABB’s future, or whether your own view sits somewhere between them.<\/p>\n

Curious how numbers become stories that shape markets? Explore Community Narratives<\/a><\/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":"Make better investment decisions with Simply Wall St’s easy, visual tools that give you a competitive edge. If…\n","protected":false},"author":2,"featured_media":668,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[130],"tags":[232,19194,20975,5606,1105,3794,842],"class_list":{"0":"post-35442","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-abb","8":"tag-abb","9":"tag-cash-flow-projections","10":"tag-dcf-model","11":"tag-fair-price","12":"tag-free-cash-flow","13":"tag-future-cash-flows","14":"tag-share-price"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116259894245341017","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/35442","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=35442"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/35442\/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=35442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=35442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=35442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}