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Abb Ltd
SIX:ABBN

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Abb Ltd Logo
Abb Ltd
SIX:ABBN
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Price: 44.33 CHF 6.26%
Updated: Apr 19, 2024

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Apr 19, 2024.

Estimated DCF Value of one ABBN stock is 27.62 CHF. Compared to the current market price of 44.33 CHF, the stock is Overvalued by 38%.

ABBN DCF Value
Base Case
27.62 CHF
Overvaluation 38%
DCF Value
Price
Worst Case
Base Case
Best Case
27.62
DCF Value
Worst Case
Base Case
Best Case
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DCF Value: 27.62 CHF

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 19B USD. The present value of the terminal value is 37.3B USD. The total present value equals 56.3B USD.
Forecast Period
Years
Discount Rate
%
Show All DCF Settings
Terminal Growth
%
Hide DCF Settings
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 56.3B USD
Equity Value 56.3B USD
/ Shares Outstanding 1.9B
Value per Share 30.27 USD
USD / CHF Exchange Rate 0.9124
ABBN DCF Value 27.62 CHF
Overvalued by 38%

You are using the equity valuation model. In this approach, further calculations for converting firm value to equity value are not required. The present value, obtained in the present value calculation block, already represents the equity value.

The DCF value per share is derived by dividing the present value by the number of shares:

Present Value
56.3B CHF
/
Number of Shares
1.9B
=
DCF Value
27.62 CHF

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
34.2B 42B
Net Income
3.9B 5.1B
FCFE
4.4B 5.3B

See Also

Discover More

What is the DCF value of one ABBN stock?

Estimated DCF Value of one ABBN stock is 27.62 CHF. Compared to the current market price of 44.33 CHF, the stock is Overvalued by 38%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Abb Ltd's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 56.3B USD.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 27.62 CHF per share.

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