Is AbbVie (ABBV) Undervalued As It Expands Skyrizi In Crohns Disease?
Simply Wall St
Sun, 30 August 2026 at 6:37 am GMT+5:30
4 min read
- ABBV
-1.03% - APGE
+0.01%
What AbbVie’s Skyrizi EMA filing means for ABBV stock
AbbVie (ABBV) has moved to expand Skyrizi’s role in Crohn’s disease treatment by submitting an application to the European Medicines Agency for a subcutaneous induction regimen in adults with moderately to severely active disease
The filing, backed by Phase 3 AFFIRM data, comes as AbbVie stock reflects a mixed recent pattern, with the share price down over the past week but higher over the past month, past 3 months and past year
At a share price of US$255.48, AbbVie has seen short term momentum cool, with the 7 day share price return down 3.58%, although the 90 day share price return of 19.98% and 1 year total shareholder return of 25.19% still point to strong underlying interest. Recent updates around Skyrizi in Crohn’s disease and new oncology data, along with the Apogee Therapeutics acquisition, help explain why the stock’s longer term total shareholder returns over 3 and 5 years, at 91.21% and 174.99% respectively, remain well ahead of the recent pullback.
Ride this momentum by comparing AbbVie to other large pharma stocks that screen well on cash flows and balance sheet strength using our hand picked list of solid balance sheet and fundamentals (51 results)
The recent pullback in AbbVie after strong multi year returns raises a simple question. Are you looking at a temporary shift in sentiment, or a measured response to what the current fundamentals justify on valuation?
Most Popular Narrative: 6.6% Undervalued
The most followed AbbVie narrative points to a fair value of about $273 per share compared with the last close at $255.48. That gap reflects a view that the current price does not fully capture what Skyrizi, Rinvoq and the broader pipeline could contribute over time
AbbVie’s diversified and expanding late-stage and early-stage pipeline, coupled with consistent business development activity (e.g., Capstan in vivo CAR-T, Gubra amylin analog for obesity, next-gen siRNA platforms), positions the company to capitalize on the increasing adoption of biologics and specialty pharmaceuticals, which can reinforce premium pricing and protect net margins
Want to see what is baked into that fair value for AbbVie? The narrative focuses on compounding earnings, a shifting margin profile and a premium profit multiple that is more typically associated with faster growing sectors
Result: Fair Value of $273.39 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts
