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ABB Ltd (ABB) Fair Value & Analysis

Industrials · SE · Market cap 1.7T SEK (≈ $179B) · ISIN CH0012221716

What is ABB Ltd really worth?

AL ABB Ltd ABB · ST
Pricekr 916.00
Fair Valuekr 367.51
Upside−59.9%
Quality72/100

A solid business, but trading 149% above our fair value of kr 367.51.

As of Sep 1, 2026, the fair value of ABB Ltd is kr 367.51 per share against a price of kr 916.00, so the fair value sits 60% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

Strengths

Healthy Growth (revenue 5y +5.8 %/yr)
Solidly profitable · 14.3% net margin
Low debt · generates free cash flow
Wide moat 74/100

For context

·0.13% dividend yield
Evidence: High Range kr 255.62 – kr 543.28

Fair value as of: Sep 1, 2026

From 22 valuation models · updated 5 days ago

Fair value updated Sep 1, 2026, revised from kr 364.43 to kr 367.51 (+0.8%) since Aug 27, 2026. Share price −5.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A high-quality business (quality 72/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (kr 543.28). The favourable scenario is already priced in.
  • A fairly wide model range (kr 255.62 to kr 543.28) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

kr 1,056 kr 233.17 Fair Value kr 367.51 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.

How to read this chart

60‑month range kr 233.17 – kr 1,056 · fair‑value band kr 255.62 – kr 543.28 · the kr 916.00 price screens above the kr 367.51 fair value. Dashed = 300-day average. As of Sep 1, 2026.

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Analysis

ABB Ltd (ABB) currently trades at kr 916.00, while our model-based Fair Value estimate is kr 367.51, implying the stock looks roughly 149.3% overvalued today. The Quality Score stands at 72/100 (solid quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of kr 43.42 per share, and 0 of the 22 models we run sit above the kr 916.00 price. Bear case: the Multiples group reads lowest at kr 39.89, and 22 of the 22 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, ABB Ltd generated revenue of 34.6B SEK at a net margin of 14.3%. Revenue grew 18.3% year over year. It earns a return on equity of 33.6%. Net debt stands at 4.5B SEK. Fundamentals as of Sep 1, 2026

Our scenario range runs from kr 255.62 (bear case) to kr 543.28 (bull case); at kr 916.00, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 10% below its 52-week high and 73% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at −60%, ABB screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly kr 17.25 per share, which is 4.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (kr 5.94 to kr 57.39). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence kr 25.69 kr 36.28 kr 57.28 80
Growth DCF kr 26.89 kr 37.31 kr 56.37 78
Owner Earnings kr 25.94 kr 36.63 kr 57.82 76
All 22 models by family
DCF Models
FCF DCF best evidence kr 25.69 kr 36.28 kr 57.28 80
Owner Earnings kr 25.94 kr 36.63 kr 57.82 76
5Y Revenue Exit kr 22.37 kr 32.97 kr 48.43 72
5Y EBITDA Exit kr 27.69 kr 42.03 kr 61.06 75
5Y P/E Exit kr 31.91 kr 49.21 kr 69.85 70
10Y Revenue Exit kr 22.68 kr 32.29 kr 43.26 67
10Y EBITDA Exit kr 26.71 kr 38.42 kr 51.75 69
10Y P/E Exit kr 29.36 kr 43.28 kr 57.66 64
Earnings-Based
Graham-Dodd kr 18.58 kr 31.69 kr 38.68 67
EPV kr 21.01 kr 25.03 kr 28.60 74
Multiples
P/E Multiple kr 43.04 kr 57.39 kr 71.73 63
P/S Multiple kr 28.62 kr 38.16 kr 47.70 58
P/B Multiple kr 29.92 kr 39.89 kr 49.86 55
EV/EBIT kr 38.83 kr 52.35 kr 65.88 66
EV/EBITDA kr 33.64 kr 45.45 kr 57.25 67
EV/Revenue kr 22.28 kr 32.59 kr 42.89 53
Asset-Based
NCAV (Graham) kr 4.43 kr 5.94 kr 8.86 54
Growth DCF
Growth DCF kr 26.89 kr 37.31 kr 56.37 78
Rev-Margin DCF kr 22.37 kr 33.44 kr 47.32 73
Economic Profit
Residual Income kr 19.70 kr 27.52 kr 217.52 64
ROIC Compounder kr 21.45 kr 26.19 kr 31.36 72
Growth Earnings
Growth-Adj P/E kr 30.39 kr 43.42 kr 56.44 67

Widest divergence: Growth Earnings (kr 43.42) versus Asset-Based (kr 5.94). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 34.6
P/S ratio 4.96 P/E × margin
EPS (TTM) kr 26.47 price ÷ EPS = P/E 34.6
Dividend yield 0.1% payout 4.5%
Net margin 14.3% FY2025
Return on equity 32.1% TTM
More key figures
Profitability
Return on assets (EBIT) 12.0% avg 5y
Operating margin 16.9% TTM
Growth
Revenue (TTM) 35.1B SEK TTM
Revenue growth (YoY) +6.5% 3y avg +5.6%
EPS growth (YoY) +8.3%
Balance sheet & cash flow
Free cash flow 4.7B SEK FY2025
Net debt 4.5B SEK FY2025 · ≈ 1.0 yrs of FCF

Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 72/100

Of which business quality 70 · Market factors (momentum, volatility) 70

Profitability 68
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 71
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 66
Price trend over the last 3–12 months (market factor)
52W Momentum 79
Distance to the 52-week high (market factor)
Net Issuance 94
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

ABB Ltd provides electrification, motion, and automation solutions and products for customers in utilities, industry and transport, and infrastructure in Europe, the Americas, Asia, the Middle East, and Africa. The company operates through Electrification, Motion, and Automation segments.

Full company description

ABB Ltd provides electrification, motion, and automation solutions and products for customers in utilities, industry and transport, and infrastructure in Europe, the Americas, Asia, the Middle East, and Africa. The company operates through Electrification, Motion, and Automation segments. Its Electrification segment offers renewable power solutions, modular substation packages, distribution automation products, switchboards and panelboards, switchgears, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions. The company's Motion segment designs, manufactures, and sells drives, motors, generators, and traction converters that are driving the low-carbon future for industries, cities, infrastructure, and transportation. The company's Automation segment offers industry-specific, integrated automation, electrification and digital solutions, as well as lifecycle services for the process, hybrid and marine industries. This segment also provides control technologies; process, machine and factory automation; industrial software; advanced analytics; sensing and measurement technology; and marine propulsion systems; services such as remote monitoring, preventive maintenance, asset performance management, emission monitoring and cybersecurity. It serves oil, gas, renewables, chemicals, mining, metals, cement, pulp and paper, pharmaceuticals, battery manufacturing, food and beverage, space, power generation, water, marine, and ports industries. The company was founded in 1883 and is headquartered in Zurich, Switzerland.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ABB Ltd reported revenue of $34.6B in FY2025 versus $28.9B in FY2021, a compound +4.6%/yr. Reported net income was $5.0B in FY2025, compounding +2.2%/yr from FY2021.

Growth Quality 81/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
34.6B SEK
Latest YoY
+5.4%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.6%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.8%
Avg. revenue growth/yr (26Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year.
+28.4% · in SEK
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+28.3%
Dividend yield0.1%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 39.6% vs 10Y 11.5%, picking up
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.6.1% (2020) → 16.7% (2025) · rising
Worst earnings drop84% (2020) · in SEK
Revenue +4.6%/yr
FY21 $28.9B
FY22 $29.4B
FY23 $32.2B
FY24 $32.9B
FY25 $34.6B
Net income +2.2%/yr
FY21 $4.5B
FY22 $2.5B
FY23 $3.7B
FY24 $3.9B
FY25 $5.0B
Character of growth · EPS growth decomposed (2014-2025) +9.9 % p.a.
Revenue per share +1.1 %

of which total revenue −1.0 % · buybacks/dilution +2.1 %

EBIT margin +5.9 %
Tax rate +1.0 %
Residual (interest, one-offs) +1.7 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

ABB screens 149% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "ABB Ltd Fair Value". https://www.fairvalue-calculator.com/stock/ABB.ST

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Electrical Equipment & Parts · 544 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 72 · Top 25%
Fair Value upside −63% · Below median
Return on equity (TTM) 32% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth 7% · Below median
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.49× · Higher than 75% of peers

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 34.6× · Pricier than median
P/B 11.16× · Pricier than 75% of peers
P/S (TTM) 5.11× · Pricier than 75% of peers
P/FCF 38.4× · Pricier than 75% of peers
EV/EBITDA 26.0× · Pricier than median
PEG 2.98× · Pricier than 75% of peers

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Sep 1, 2026).

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Frequently asked questions

Is ABB Ltd (ABB) overvalued or undervalued?
As of Sep 1, 2026, our model estimates a fair value of kr 367.51 versus a price of kr 916.00, about −60% upside (overvalued).
What is the fair value of ABB?
Our model-based fair value for ABB Ltd is kr 367.51 (as of Sep 1, 2026), built from audited fundamentals. The current price: kr 916.00.
What is the quality score of ABB?
ABB Ltd has a Quality Score of 72/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for ABB Ltd (ABB)?
Our model-based price target is the fair value of kr 367.51 (as of Sep 1, 2026) from 22 valuation models. Cautious scenario kr 255.62, optimistic scenario kr 543.28. It is a calculation from audited fundamentals, not an analyst target.
What is the ABB Ltd stock forecast for 2026?
Our models put fair value at kr 367.51, about −60% upside versus a price of kr 916.00 (overvalued). Cautious scenario kr 255.62, optimistic scenario kr 543.28. The calculation is refreshed regularly with new filings.
What is the revenue of ABB Ltd (ABB)?
ABB Ltd reported trailing-twelve-month revenue of about 34.6B SEK (latest available figure, as of Sep 1, 2026).
What is the net profit margin of ABB?
The net profit margin of ABB Ltd is about 14.3%, meaning it keeps roughly 14.3% of revenue as net income. Based on the latest reported figures.
Does ABB Ltd pay a dividend?
ABB Ltd currently shows a dividend yield of about 0.13% relative to its recent price (as of Sep 1, 2026).
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