Abbvie Inc (ABBV) is overvalued and Novartis AG ADR (NVS) is overvalued.
Both trade above our estimate of their intrinsic value. NVS is the closer of the two: -27%, against -148% for ABBV.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.1% (average of 3 methods) values the shares at $106.86; the price of $265.21 is 148% above that value, and 83% of that value comes from beyond year five.
Leak Score 57/100 on 8 of 12 signals
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $111.38; the price of $141.28 is 27% above that value, and 81% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | ABBV | NVS |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $265.21 | $141.28 |
| Intrinsic value | $106.86 | $111.38 |
| Margin of safety | -148% | -27% |
| Leak Score | 57/100 (8/12) | 59/100 (3/12) |
| Market cap | $468.7B | $258.6B |
| Revenue growth, 5 years | 6.0% | 2.3% |
| Operating margin | 34.2% | 29.6% |
| Net margin | 9.7% | 23.3% |
| Return on equity | 15221.8% | 30.6% |
| Debt to equity | — | 1.18 |
| P/E | 75.0x | 21.3x |
| Forward P/E | 16.2x | 14.4x |
| P/B | — | 6.2x |
| Dividend yield | 2.6% | 3.1% |