{"id":45226,"date":"2026-04-07T09:24:06","date_gmt":"2026-04-07T09:24:06","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/45226\/"},"modified":"2026-04-07T09:24:06","modified_gmt":"2026-04-07T09:24:06","slug":"is-abb-swxabbn-still-fairly-priced-after-its-69-5-one-year-rally","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/45226\/","title":{"rendered":"Is ABB (SWX:ABBN) Still Fairly Priced After Its 69.5% One Year Rally?"},"content":{"rendered":"\n

Find your next quality investment<\/a> with Simply Wall St’s easy and powerful screener, trusted by over 7 million individual investors worldwide.<\/p>\n

If you are wondering whether ABB at around CHF 65.84 is still reasonably priced after a strong run, the next sections break down what the current market price might be implying.<\/p>\n

The share price has delivered a 69.5% return over the last year, with 7.5% year to date, 5.9% over the last 7 days and a small 0.9% decline over the last 30 days, which may hint at changing views on both upside potential and risk.<\/p>\n

Recent news coverage has focused on ABB’s position within capital goods and electrification markets and how investors are assessing its role in long term infrastructure and automation themes. These headlines provide useful context when thinking about whether the current price already reflects those expectations or leaves room for surprise.<\/p>\n

ABB currently has a valuation score of 2 out of 6, and the rest of this article looks at how different valuation approaches line up with that score, before finishing with a way of assessing value that can help you connect the numbers to the underlying story.<\/p>\n

ABB scores just 2\/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 projects a company\u2019s future cash flows and then discounts them back to today\u2019s value to estimate what the entire business might be worth per share.<\/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 and subsequent extrapolations suggest free cash flow of US$7.58b in 2030, with a full set of ten year projections discounted back to today.<\/p>\n

Pulling those discounted cash flows together gives an estimated intrinsic value of CHF 66.94 per share, compared with the current market price of around CHF 65.84. That implies the shares are about 1.6% below the DCF estimate, which sits within a reasonable margin of error for this type of model.<\/p>\n

On this DCF view, ABB appears broadly in line with its estimated cash flow value rather than clearly cheap or expensive.<\/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 Apr 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 profitable companies, the P\/E ratio is a useful way to think about value because it links what you pay for each share to the earnings that support that share. A higher or lower P\/E often reflects what the market is baking in around future growth and the level of risk. As a result, a company with stronger growth prospects or perceived resilience can trade on a higher \u201cnormal\u201d P\/E than one with slower growth or higher uncertainty.<\/p>\n

Story Continues <\/p>\n

ABB currently trades on a P\/E of 32.7x. That sits above the Electrical industry average of 30.1x and the peer average of 29.4x, which suggests the market is willing to pay more for ABB\u2019s earnings than for the typical peer. Simply Wall St\u2019s Fair Ratio for ABB is 33.7x, which is a proprietary estimate of what ABB\u2019s P\/E might be given its earnings growth profile, industry, profit margins, market value and risk factors.<\/p>\n

This Fair Ratio aims to be more tailored than a simple peer or sector comparison because it adjusts for company specific characteristics rather than using a one size fits all benchmark. With ABB\u2019s current P\/E of 32.7x sitting slightly below the Fair Ratio of 33.7x, the valuation looks close to what that model would suggest.<\/p>\n

Result: ABOUT RIGHT<\/p>\n

\"SWX:ABBN<\/a> SWX:ABBN P\/E Ratio as at Apr 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 96 top founder-led companies<\/a>.<\/p>\n

Earlier it was mentioned that there is an even better way to think about valuation. Meet Narratives, a simple tool on Simply Wall St\u2019s Community page that lets you attach your own story about ABB to the numbers by linking a view on its future revenue, earnings and margins to a Fair Value estimate. You can then compare that Fair Value with the current price to help you decide whether to buy, hold or sell, and your view is automatically updated as new earnings or news arrive. One investor might focus on a cautious ABB Narrative that aligns with a Fair Value around CHF 52.89, while another builds a more optimistic ABB Narrative closer to CHF 77.78, with both perspectives clearly tied to explicit forecasts rather than vague opinions.<\/p>\n

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

These give you a structured bullish and cautious view built from the same data set, so you can quickly see which assumptions feel closer to your own.<\/p>\n

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

Fair Value: CHF 77.78<\/p>\n

Current price vs this fair value: around 15% below the narrative fair value<\/p>\n

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

Analysts in this camp emphasize strong electrification and grid demand, plus a record order pipeline, as support for expectations of higher revenue and margin potential over time.<\/p>\n

The Robotics spin off, growing digital services such as ABB Ability, and local manufacturing are seen as key drivers that could lift returns if execution stays on track.<\/p>\n

Main risks flagged include supply chain and geopolitical disruptions, exposure to cyclical end markets, and competition in robotics and automation that could pressure pricing and margins.<\/p>\n

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

Fair Value: CHF 62.40<\/p>\n

Current price vs this fair value: around 5% above the narrative fair value<\/p>\n

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

This view still incorporates solid demand for electrification, digital solutions and automation, but anchors expectations closer to the analyst consensus on revenue and margins.<\/p>\n

It notes that order backlog and recurring service revenues provide visibility, while local for local production and new products support performance in faster growing regions.<\/p>\n

Key watchpoints are weaker end markets in areas such as autos and some industrial segments, intense competition in China and robotics, and reliance on continued infrastructure and data center investment.<\/p>\n

Both narratives use explicit assumptions on revenue growth, margins, earnings, P\/E and discount rates, so you can stress test them against your own view of ABB’s markets, competitiveness and risk tolerance rather than relying on headlines alone.<\/p>\n

If you want to see the full range of community views, including how these bullish and cautious setups compare with your own stance on ABB, To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives<\/a> for ABB on Simply Wall St. Add the company to your watchlist<\/a> or portfolio<\/a> so you’ll be alerted when the story evolves.<\/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 your next quality investment with Simply Wall St’s easy and powerful screener, trusted by over 7 million…\n","protected":false},"author":2,"featured_media":668,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[130],"tags":[232,19194,962,1103,1104,1105,3794,3795,3378],"class_list":{"0":"post-45226","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-chf","11":"tag-dcf","12":"tag-fair-value","13":"tag-free-cash-flow","14":"tag-future-cash-flows","15":"tag-intrinsic-value","16":"tag-simply-wall-st"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116362704691816329","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/45226","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=45226"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/45226\/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=45226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=45226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=45226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}