Is Abbott Laboratories overvalued or undervalued?

As of 17 July 2025, Abbott Laboratories has moved from a very attractive to a fair valuation grade. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 19, an EV to EBITDA of 25.84, and a PEG ratio of 0.14, which suggests strong growth potential relative to its price. In comparison, Thermo Fisher Scientific has a P/E of 30.06, indicating that Abbott is more attractively priced within its peer group, while Medtronic shows a P/E of 21.47, further supporting the notion of Abbott's fair valuation.
Despite the recent stock performance, where Abbott returned 18.97% year-to-date compared to the S&P 500's 12.22%, the longer-term returns reveal a lag, with a 3-year return of 29.39% versus the S&P's 70.41%. This indicates that while Abbott has performed well recently, its longer-term growth has not kept pace with the broader market, reinforcing the fair valuation assessment.