{"id":58938,"date":"2026-05-02T00:23:11","date_gmt":"2026-05-02T00:23:11","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/58938\/"},"modified":"2026-05-02T00:23:11","modified_gmt":"2026-05-02T00:23:11","slug":"has-abb-swxabbn-run-too-far-after-its-84-one-year-share-price-jump","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/58938\/","title":{"rendered":"Has ABB (SWX:ABBN) Run Too Far After Its 84% One Year Share Price Jump"},"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’s share price still offers value after a strong run, this breakdown will help you put the current price into clear context.<\/p>\n

ABB’s stock closed at CHF 78.44, with returns of 0.4% over 7 days, 24.0% over 30 days, 28.1% year to date, 84.3% over 1 year, 161.1% over 3 years, and 200.9% over 5 years.<\/p>\n

Recent coverage has focused on ABB’s role in electrification, automation, and power grid technology. This often features in discussions about long term infrastructure and industrial trends and can shape how investors think about the balance between growth potential and risk in the current share price.<\/p>\n

Despite that backdrop, ABB currently records a valuation score of 0 out of 6. The next sections will walk through the traditional valuation approaches used to reach that result and then finish with a perspective that can help you interpret those models more effectively.<\/p>\n

ABB scores just 0\/6 on our valuation checks. See what other red flags we found in the full valuation breakdown<\/a>.<\/p>\n

Approach 1: ABB Discounted Cash Flow (DCF) Analysis <\/p>\n

A Discounted Cash Flow, or DCF, model estimates what a company could be worth today by projecting future cash flows and discounting them back to a present value. It is essentially asking what ABB\u2019s future cash generation might be worth in today\u2019s dollars.<\/p>\n

ABB\u2019s latest twelve month free cash flow is about US$4.89b. Analysts have provided explicit free cash flow estimates out to 2030, with projections of US$4.71b in 2026 and US$7.15b by 2030. Beyond the analyst horizon, Simply Wall St extrapolates further annual cash flows using a 2 Stage Free Cash Flow to Equity model, which tapers growth as the business matures.<\/p>\n

When all these projected cash flows are discounted back using this model, the resulting intrinsic value is US$55.92 per share. Compared with ABB\u2019s current share price of CHF 78.44, this output suggests the stock is around 40.3% above the model\u2019s estimate of fair value. In this framework, the DCF points to a rich valuation at today\u2019s price.<\/p>\n

Result: OVERVALUED<\/p>\n

Our Discounted Cash Flow (DCF) analysis suggests ABB may be overvalued by 40.3%. Discover 241 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 May 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

Approach 2: ABB Price vs Earnings <\/p>\n

For a profitable company like ABB, the P\/E ratio is a useful yardstick because it links what you pay for each share to the earnings that support that price. In simple terms, higher growth expectations and lower perceived risk usually support a higher P\/E, while slower growth or higher risk tend to line up with a lower, more cautious multiple.<\/p>\n

Story Continues <\/p>\n

ABB currently trades on a P\/E of 37.44x. That sits above the Electrical industry average P\/E of about 34.52x and also above the peer group average of 33.48x. On a straight comparison with those benchmarks, the shares are pricing in a richer earnings multiple than many sector peers.<\/p>\n

Simply Wall St\u2019s Fair Ratio for ABB is 33.44x. This is a proprietary estimate of what ABB\u2019s P\/E might be given its earnings growth profile, industry, profit margins, market cap and identified risks. Because it blends these company specific inputs instead of relying only on broad peer or industry averages, it can give a more tailored view of what \u201cnormal\u201d looks like for ABB.<\/p>\n

Comparing ABB\u2019s current 37.44x P\/E with the 33.44x Fair Ratio suggests the shares are trading above this modelled fair range.<\/p>\n

Result: OVERVALUED<\/p>\n

\"SWX:ABBN<\/a> SWX:ABBN P\/E Ratio as at May 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

Upgrade Your Decision Making: Choose your ABB Narrative <\/p>\n

Earlier it was mentioned that there is an even better way to understand valuation. This is where Narratives come in as a simple way for you to attach a clear story about ABB to concrete assumptions for future revenue, earnings, margins and fair value. You can then compare that value to the current share price to frame buy or sell decisions, and have that view update automatically when fresh news or earnings arrive on Simply Wall St\u2019s Community page. For example, one investor might align with a more cautious ABB Narrative that points to a Fair Value around CHF 54.76, while another leans toward a more optimistic view closer to CHF 77.78, both using the same underlying tool but telling very different stories about what they believe ABB is worth.<\/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":[232,962,1103,1104,1105,3794,842,3378],"class_list":{"0":"post-58938","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-abb","8":"tag-abb","9":"tag-chf","10":"tag-dcf","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":"https:\/\/pubeurope.com\/@ch\/116502135260469895","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/58938","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=58938"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/58938\/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=58938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=58938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=58938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}