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ABBVIE INC. (ABBV) — WACC Analysis

WACC Breakdown

ABBVIE INC. (ABBV) has a weighted average cost of capital (WACC) of 7.1%. The cost of equity is 7.5%, derived from a beta of 0.29 and a risk-free rate of 5.3%. The after-tax cost of debt is 3.7%. The capital structure is 88.5% equity and 11.5% debt.

Interpretation

A WACC of 7.1% suggests that the market views ABBVIE INC. as relatively low-risk, with a lower cost of financing.

Investors can compare ABBV's WACC of 7.1% against industry peers to gauge its relative financing costs. A beta of 0.29 reflects the stock's volatility relative to the broader market.

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VALUATION

ABBV WACC: 7.07% for ABBVIE INC.

Current inputs imply a 7.51% cost of equity and a 4.67% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

ABBVIE INC. Common Stock (ABBV) WACC Results
Weighted Average Cost of Capital
7.07%
Cost of Equity
7.51%
Risk-Free Rate5.28%
Beta0.29
Market Risk Premium4.23%
Cost of Debt
3.69%
Pre-Tax Cost of Debt4.67%
Tax Rate21.00%
Tax Shield0.98%
Capital Structure
Equity: 88.47%($479.52B)
Debt: 11.53%($62.48B)
Equity Component
6.64%
88.47% × 7.51%
Debt Component
0.43%
11.53% × 3.69%

ABBVIE INC. (ABBV) WACC in context

ABBVIE INC. (ABBV) currently screens with an estimated WACC of 7.07%. That blends a 7.51% cost of equity, a 4.67% pre-tax cost of debt, and a 88.47% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What ABBV WACC implies

A 7.07% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates ABBV

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.29 and equity accounts for 88.47% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

ABBV WACC: 7.07% — ABBVIE INC. Cost of Capital (October 2026) | DeepViews