| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 33.50 | -50 |
| Intrinsic value (DCF) | 25.45 | -62 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 17.30 | -74 |
ABB Ltd (ABBN.SW) is a global leader in electrification, automation, robotics, and motion solutions, headquartered in Zurich, Switzerland. Founded in 1883, the company serves industries such as utilities, transportation, infrastructure, and manufacturing with cutting-edge technologies that drive efficiency and sustainability. ABB operates through four key segments: Electrification, Robotics & Discrete Automation, Motion, and Process Automation. Its product portfolio includes electric vehicle charging infrastructure, industrial robots, drives, motors, and advanced control systems, positioning ABB at the forefront of the industrial digital transformation. The company plays a pivotal role in enabling the low-carbon transition, offering solutions for renewable energy integration, smart cities, and electrified transport. With a strong presence in Europe, the Americas, and Asia, ABB leverages its engineering expertise and innovation to maintain a competitive edge in the rapidly evolving industrial technology landscape. Its commitment to sustainability and digitalization makes it a key player in shaping the future of smart infrastructure and Industry 4.0.
ABB Ltd presents a compelling investment case due to its strong market position in electrification and automation, sectors poised for long-term growth driven by global decarbonization and industrial digitalization trends. The company's diversified revenue streams across multiple industries mitigate sector-specific risks, while its robust cash flow generation (CHF 4.68B operating cash flow in FY 2023) supports continued R&D investment and shareholder returns (CHF 0.90 dividend per share). However, investors should note exposure to cyclical industrial demand and potential margin pressures from supply chain costs. With a beta of 0.80, the stock offers relatively lower volatility compared to the broader market, appealing to risk-conscious investors seeking industrial sector exposure. The company's focus on high-growth areas like EV charging and robotics could drive future valuation upside.
ABB maintains competitive advantages through its comprehensive technology portfolio spanning electrification, automation, and robotics - a breadth few competitors can match. The company's installed base of industrial equipment creates sticky customer relationships and recurring service revenue opportunities. ABB's early mover position in industrial digitalization (with its Ability platform) provides an edge in the growing market for IoT-enabled industrial solutions. In electrification, ABB benefits from regulatory tailwinds supporting grid modernization and EV infrastructure. The robotics division competes effectively in high-precision applications, though faces intense competition in collaborative robotics. ABB's Swiss engineering heritage lends credibility in mission-critical industrial applications. However, the company must continually invest to maintain technology leadership against well-capitalized rivals. Geographic diversification (with no single market contributing over 25% of revenue) provides stability but may limit margin optimization opportunities compared to more regionally focused competitors. The recent portfolio simplification (divesting non-core businesses like turbocharging) has sharpened ABB's competitive focus on high-growth automation markets.