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DCF Valuation
Base-case fair value
$69.13
Intrinsic $92.17 · 25% MOS
Current price: $105.73
Base-case summary
Our base-case DCF for Abb Ltd (ABBNY) projects 10 years of free cash flow growth at 13.9% for years 1–5 and 7.0% for years 6–10, anchored to 13.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $4.8B in trailing free cash flow, this produces an intrinsic value of $92.17 per share. A 25% safety margin gives a fair value of $69.13, suggesting the stock is currently 35% overvalued against the $105.73 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$4.8B
Cash & equivalents
$6.6B
Total debt
$9.1B
Shares outstanding
1.8B