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ABBN:SIXABB Ltd. Analysis

Data as of 2026-05-22 - not real-time

CHF 83.42

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

ABB Ltd is trading at CHF 83.42, comfortably above its 20‑day (CHF 80.36), 50‑day (CHF 73.15) and 200‑day (CHF 62.85) moving averages, underscoring a bullish price bias. However, the RSI of 65 hints at near‑overbought conditions and the MACD histogram has turned negative, signaling a bearish momentum shift, while volume has been trending lower. The stock’s 30‑day volatility of 26% is elevated, but its beta of 0.30 suggests limited systematic risk. Fundamentally, the company posts a robust 18% revenue growth, a 33.5% ROE and a modest dividend yield of 1.14% with a 44% payout ratio, indicating dividend sustainability. Yet a trailing PE of 39.7 versus an industry average of 29.5 and a DCF‑derived fair value implying a 13% downside highlight significant valuation pressure. Recent material news includes a European capex program to expand medium‑voltage grid solutions and a modest share‑buyback of 80,000 shares, both supportive, while Kepler Cheuvreux downgraded the stock to Hold on valuation concerns.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Price hovering near resistance at CHF 83.70
  • Bearish MACD crossover and decreasing volume
  • Elevated short‑term volatility

Medium Term

1–3 years
Neutral
Model confidence: 7/10

Key Factors

  • Strong 18% revenue growth and 33.5% ROE
  • Dividend yield of 1.14% with a sustainable payout
  • Strategic European investment in medium‑voltage technologies

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • Long‑term secular tailwinds in electrification and automation
  • Low beta (0.30) reducing market‑wide risk exposure
  • Solid cash generation and ongoing share‑buyback program

Key Metrics & Analysis

Financial Health

Revenue Growth18.30%
Profit Margin14.34%
P/E Ratio39.7
ROE33.55%
ROA8.93%
Debt/Equity59.72
P/B Ratio13.0
Op. Cash FlowCHF5.8B
Free Cash FlowCHF475.5M
Industry P/E29.5

Technical Analysis

TrendBullish
RSI65.2
SupportCHF 75.82
ResistanceCHF 83.70
MA 20CHF 80.36
MA 50CHF 73.15
MA 200CHF 62.85
MACDBearish
VolumeDecreasing
Fear & Greed Index90.98

Valuation

Fair ValueCHF 5.44
Target PriceCHF 72.03
Upside/Downside-13.65%
GradeOvervalued
TypeGrowth
Dividend Yield1.14%

Risk Assessment

Beta0.30
Volatility26.42%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.