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Stock Insight: ABB Ltd Shares

Today we’re reviewing ABB Ltd shares.

They’ve had a great year so far with shares up 18.1%. But will this trend continue or reverse?

Check out our analysis below…

Business Overview

ABB Ltd was founded in 1988 and is headquartered in Switzerland.

The company operates in the industrial automation industry and employs 140 thousand people. The CEO is Ulrich Spiesshofer.

The business is broken down into five segments: Electrification Products, Robotics and Motion, Industrial Automation, Power Grids, and Corporate and Other. ABB Ltd has also expanded its business recently by acquiring GE Industrial Solutions for $2.6 billion.

ABB Ltd’s revenue is down over the last year…

ABB Ltd Shares Revenue

Revenue will keep flowing for now. And investors value the company at $53.8 billion… but is that too high?

What are ABB Ltd Shares Worth?

At $24.88 per share, you might think it’s a good deal… but share price doesn’t tell us much on its own. Instead let’s look at the following key metrics…

Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down. – Warren Buffett

Price-to-Earnings: ABB Ltd shares trade at 24 times earnings. That’s below the average for its competitors.

The lower the P/E ratio the better. A high ratio indicates investors are already expecting high earnings growth.

Price-to-Book: ABB Ltd shares trade at 3.9 times their book value. This is good compared to its competitors.

The P/B ratio varies across industries and it’s 4 for ABB Ltd’s peers.

Debt-to-Equity: This ratio comes in at 0.52 and gives insight into the company’s financial structure.

The industry average is 0.9… so ABB Ltd shares look a little safer.

Great company research should go much further than these three ratios… but they’re a good place to start.

To learn more about ABB Ltd shares… check out the company’s website or the most recent SEC annual report.

Brian Kehm

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Published in Stock Research


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