AbbVie‘s CAPE ratio

AbbVie’s CAPE ratio, or Cyclically Adjusted Price-to-Earnings ratio, evaluates its stock price relative to its inflation-adjusted earnings over the past 10 years. This metric helps investors assess whether the stock is overvalued or undervalued based on long-term earnings trends, rather than short-term fluctuations. AbbVie’s CAPE ratio can be influenced by factors like drug patent expirations, pipeline developments, and overall pharmaceutical sector performance. A higher ratio suggests higher growth expectations, while a lower ratio might indicate undervaluation or market concerns about future earnings stability.