Company name ABB Ltd (ADR)
Stock ticker ABB
Live stock price [stckqut]ABB[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Poor
EPS growth Fair
P/E growth Fair
EBIT growth Fair

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $23.57
Target stock price (averages with growth) $33.67
Target stock price (averages with no growth) $33.2
Target stock price (manual assumptions) $22.69

The following company description is from Google Finance: http://www.google.com/finance?q=abb

ABB Ltd (ABB) is engaged in power and automation technologies committed to improving performance and lowering the environmental impact for utility and industry customers. The Company provides a broad range of products, systems, solutions and services that are designed to power grid reliability boost industrial productivity and enhance energy efficiency. The Company’s power businesses focus on power transmission, distribution and power-plant automation, and support electric, gas and water utilities, as well as industrial and commercial customers. Effective September 27, 2013, ABB Ltd acquired Baldor Electric India Pvt Ltd.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in ABB Ltd (ADR).

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $24.87

Growth: 0.09

Current EPS (TTM): $1.25

P/E: 19

Future EPS Calc: $1.92

Future Stock Price Calc: $36.54

Target stock price: $22.68

I hope that this makes you a better investor. [/s2If]