Is Abbott Laboratories overvalued or undervalued?

As of 18 June 2025, Abbott Laboratories has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a P/E ratio of 19, significantly lower than its peers such as Intuitive Surgical, Inc. at 73.45 and Danaher Corp. at 39.51. Additionally, Abbott's PEG ratio stands at an impressive 0.14, indicating strong growth potential relative to its price, while its ROE is a robust 27.70%.
In comparison to its peers, Abbott Laboratories shows favorable metrics, particularly with an EV to EBITDA of 25.84, which is lower than Intuitive Surgical's 60.67, highlighting its relative value. The company's recent performance has also been noteworthy, with a year-to-date return of 17.81%, outperforming the S&P 500's 2.44%. Overall, Abbott Laboratories presents a compelling investment opportunity given its strong financial ratios and favorable peer comparisons.