Abbvie DCF Stock Analysis.

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 3.92%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.62%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 8.5%

Historical Data

Revenue growth in the last 10 years (CAGR): 8.12%

Earnings growth in the last 10 years (CAGR): -3.37%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 11.33%

Future Assumptions

End of Year FCF growth: 6%

Growth until end of 2026: 11%

Growth until end of 2034: 6%

Perpetual growth: 3%

Net Debt: 63.178B

Outstanding Stock Options Present Value Assumption: $0.711B

Assumptions used for the Black & Scholes model:

• Stock Price: $231
• Strike Price: $117.48
• Time to expiration: 5.3 years
• Risk Free Rate: 3.92%
• Volatility: 20%

Restricted Stock Units Present Value Assumption: $2.399B

Stock Valuation based on these assumptions: $260

Last update 02/17/2026

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Abbvie (ABBV) and I don’t plan to add a position in the coming days.