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STOCK COMPARISON

AbbVie vs Johnson & Johnson: Fair Value & Quality

Both stocks run through our valuation models. Here is how AbbVie (ABBV) and Johnson & Johnson (JNJ) compare, as of Oct 20, 2026.

As of Oct 20, 2026, Fair Value Calculator sees AbbVie as the less overvalued of the two: AbbVie trades at $283 versus a fair value of $260 (−8.2%), while Johnson & Johnson trades at $254 versus $169 (−33.5%).
AbbVie
ABBV · USD · Health Care
−8.2%
upside to fair value
fairly valued
Price$283
Fair Value$260
Quality73/100
Johnson & Johnson
JNJ · USD · Health Care
−33.5%
upside to fair value
overvalued
Price$254
Fair Value$169
Quality80/100
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

AbbVieJohnson & Johnson
Valuation
80.9×P/E (TTM)29.7×
77.7×P/E ex one-offs (FY2025)23.5×
17.4×Forward P/E (FY2027)20.9×
25.4×Median P/E at FY-end (ex one-offs where documented)24.5×
7.85×P/S (TTM)6.37×
Negative equityP/B7.65× · book value is mostly goodwill
18.2×EV/EBITDA18.5×
0.54×PEG2.82×
−8.2%Fair value upside−33.5%
2.4%Dividend yield2.1%
$6.83Dividend per share$5.24
Profitability
40.0%Operating margin29.2%
0.83×EBIT margin trend (5Y)1.14×
Negative equityReturn on equity25.7%
3.2%Return on assets13.5%
Growth
10.2%Revenue growth (YoY)6.6%
1.8%Avg. growth/yr (3Y)5.6%
6.0%Avg. growth/yr (5Y)2.7%
−6.7%Value creation/yr+15.4%
Balance & size
6.9×Interest coverage (EBIT/interest)26.4×
Negative equityDebt / equity0.48×
$505BMarket cap$624B
mixedGrowth qualityhealthy
The P/E excluding one-off items is scored: for at least one of the two companies, special items (write-downs, restructuring, litigation) move the reported P/E by 15 % or more. The trailing P/E is shown for reference.
AbbVie, median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 7 of the years ex one-offs: 25.4. Johnson & Johnson, median P/E at fiscal year-end, 9 fiscal years (2016 to 2025), reported earnings, 8 of the years ex one-offs: 24.5.
Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

Johnson & Johnson leads: 6 to 8 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

AbbVie Johnson & Johnson
ProfitabilityHow much profit the company makes from its sales and capital
39
74
Quality GrowthAre margins and returns getting better?
58
73
CashflowDo the profits arrive as real cash?
99
70
Financial strengthDebt, balance sheet and risk of trouble
49
72
InvestmentDoes it invest with discipline instead of growing at any price?
100
87
Low VolatilityHow calm the share price moves, does not count
88
94
MomentumPrice trend of the last 3 to 12 months, does not count
69
61
Near the 52-week highDistance to the 52-week high, does not count
80
73
New sharesBuys back shares or issues new ones?
83
87

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyAbbViePrice $283Johnson & JohnsonPrice $254
DCF Models−50.8%below the price$139−32.9%below the price$170
Earnings-Based−85.0%below the price$42.52−69.0%below the price$78.71
Dividend Discount−47.6%below the price$148−56.8%below the price$110
Multiples−76.1%below the price$67.70−33.5%below the price$169
Growth DCF−30.3%below the price$197−42.2%below the price$147
Economic Profit−54.1%below the price$130−60.2%below the price$101
Growth Earnings−85.6%below the price$40.80−18.6%below the price$207
Minimum−85.6%below the price$40.80−69.0%below the price$78.71
Maximum−30.3%below the price$197−18.6%below the price$207
Median−54.1%below the price$130−42.2%below the price$147
Geometric mean−67.0%below the price$93.35−47.4%below the price$134

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

AbbVie: 23 of 23 models see the stock below the current price.

Johnson & Johnson: 24 of 24 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

AbbVie
Price $283
Fair Value $260
Bear $168Bull $359
Johnson & Johnson
Price $254
Fair Value $169
Bear $108Bull $255

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

AbbVie · Health Care

Quality score73 · Top 25%
Fair value upside−8.2% · above median

Johnson & Johnson · Health Care

Quality score80 · Top 25%
Fair value upside−33.5% · below median

Bottom line

As of Oct 20, 2026, Fair Value Calculator sees AbbVie as the less overvalued of the two: AbbVie trades at $283 versus a fair value of $260 (−8.2%), while Johnson & Johnson trades at $254 versus $169 (−33.5%).

Johnson & Johnson has the higher quality score (80/100).

Open AbbVie live analysis →

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.