How to buy ABB stock | 22 April
finder CA

Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

How to buy ABB stock in Canada

Own ABB shares in just a few minutes.

Compare brokers
Avatar
Jing Jun Ma
Posted
Fact checked

ABB Ltd is an electrical equipment & parts business based in the US. ABB shares (ABB.US) are listed on the NYSE and all prices are listed in US Dollars. ABB employs 105,600 staff and has a trailing 12-month revenue of around $26.1 billion.

How to buy shares in ABB

  1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
  2. Open your account. You'll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: ABB in this case.
  5. Research ABB shares. The platform should provide the latest information available.
  6. Buy your ABB shares. It's that simple.

What's in this guide?

  1. Can I buy shares in ABB?
  2. ABB shares summary
  3. Compare share dealing platforms
  4. Is ABB stock a buy or sell?
  5. Can I short ABB shares?
  6. Are ABB shares over-valued?
  7. ABB's financials
  8. How volatile are ABB shares?
  9. Does ABB pay a dividend?
  10. Have ABB shares ever split?
  11. Other common questions

ABB share price

Use our graph to track the performance of ABB stocks over time.

ABB shares at a glance

Information last updated 2021-04-14.
Latest market close$N/A
52-week range$16.335 - $32.1
50-day moving average $30.6415
200-day moving average $28.4228
Wall St. target price$32.81
PE ratio 12.9573
Dividend yield $0.904 (2.85%)
Earnings per share (TTM) $2.438

Compare online stock trading platforms

Note: The dollar amounts in the table below are in Canadian dollars.

Name Product Available asset types Stock Fee Option Fee Account Fee ETF Transaction Cost Feature Table description
Questrade
Questrade
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, International Equities, Precious Metals
$4.95-$9.95
$9.95 + $1 per contract
$0
Free
$0 account fee and free ETF transactions.
Opt for self-directed investing and save on fees or get a pre-built portfolio and take some of the guesswork out.
Go to site
More Info
Interactive Brokers
Interactive Brokers
Stocks, Bonds, Options, ETFs, Currencies, Futures
Min. $1.00, Max. 0.5% of trade value
$1.50 min. per order
$0 (if monthly commissions are greater than or equal to US$10.00)
Min. $1.00, Max. 0.5% of trade value
Extensive trading capabilities and global investment tracking.
Access market data 24 hours a day, six days a week and invest in global stocks, options, futures, currencies, bonds and funds from one single account.
Go to site
More Info
Wealthsimple Trade
Wealthsimple Trade
Stocks, ETFs
$0
N/A
$0
Free
Deposit and trade $100 and get a $25 bonus.
Pay no commissions when you trade Canadian stocks and ETFs with Wealthsimple Trade.
Go to site
More Info
Qtrade Investor
Qtrade Investor
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs
$6.95 - $8.75
$6.95 - $8.75 + $1.25 per contract
$0 if conditions met, otherwise $25/quarter
$0 - $8.75
Trade 100 ETFs free of charge.
Qtrade Investor offers low trading commissions and an easy-to-use platform with access to powerful tools and a wide selection of investment options. Trade 100 ETFs free of charge and thousands more for $8.75 or lower.
Go to site
More Info
Scotia iTRADE
Scotia iTRADE
Options, Mutual Funds, ETFs, GICs, International Equities
$4.99-$9.99
$9.99 + $1.25 contract ($4.99 + $1.25 contract if completed 150 trades or more a quarter)
$0
$9.99 ($4.99 if completed 150 trades or more a quarter)
Pay no annual account fees.
Buy, sell and trade ETFs, Equities, Options and more with competitive commissions.
Go to site
More Info
loading

Compare up to 4 providers

Online stock trading

Is it a good time to buy ABB stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Is ABB under- or over-valued?

Valuing ABB stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of ABB's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

ABB's P/E ratio

ABB's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 13x. In other words, ABB shares trade at around 13x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

ABB's PEG ratio

ABB's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.938. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into ABB's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

ABB's EBITDA

ABB's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$2.7 billion.

The EBITDA is a measure of a ABB's overall financial performance and is widely used to measure a its profitability.

ABB financials

Revenue TTM USD$26.1 billion
Operating margin TTM 7.2%
Gross profit TTM USD$8 billion
Return on assets TTM 2.7%
Return on equity TTM 2.3%
Profit margin 19.69%
Book value $7.723
Market capitalisation USD$63.7 billion

TTM: trailing 12 months

How to short and sell ABB shares

  1. Create a CFD or spread betting account.
  2. Search for the stock code. E.g. "ABB.US"
  3. Choose your position size.
  4. Select "sell" rather than "buy".
  5. Confirm your position and keep tabs on it. You may wish to set limits on your position.

There are currently 4.2 million ABB shares held short by investors – that's known as ABB's "short interest". This figure is 1.9% down from 4.3 million last month.

There are a few different ways that this level of interest in shorting ABB shares can be evaluated.

ABB's "short interest ratio" (SIR)

ABB's "short interest ratio" (SIR) is the quantity of ABB shares currently shorted divided by the average quantity of ABB shares traded daily (recently around 1.9 million). ABB's SIR currently stands at 2.21. In other words for every 100,000 ABB shares traded daily on the market, roughly 2210 shares are currently held short.

However ABB's short interest can also be evaluated against the total number of ABB shares, or, against the total number of tradable ABB shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case ABB's short interest could be expressed as 0% of the outstanding shares (for every 100,000 ABB shares in existence, roughly 0 shares are currently held short) or 0% of the tradable shares (for every 100,000 tradable ABB shares, roughly 0 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against ABB.

Find out more about how you can short ABB stock.

ABB share dividends

34%

Dividend payout ratio: 34.42% of net profits

Recently ABB has paid out, on average, around 34.42% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.76% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), ABB shareholders could enjoy a 2.76% return on their shares, in the form of dividend payments. In ABB's case, that would currently equate to about $0.904 per share.

While ABB's payout ratio might seem fairly standard, it's worth remembering that ABB may be investing much of the rest of its net profits in future growth.

ABB's most recent dividend payout was on 13 May 2021. The latest dividend was paid out to all shareholders who bought their shares by 28 March 2021 (the "ex-dividend date").

Have ABB's shares ever split?

ABB's shares were split on a 4:1 basis on 28 March 2001. So if you had owned 1 share the day before before the split, the next day you'd have owned 4 shares. This wouldn't directly have changed the overall worth of your ABB shares – just the quantity. However, indirectly, the new 75% lower share price could have impacted the market appetite for ABB shares which in turn could have impacted ABB's share price.

ABB share price volatility

Over the last 12 months, ABB's shares have ranged in value from as little as $16.335 up to $32.1. A popular way to gauge a stock's volatility is its "beta".

ABB.US volatility(beta: 1.09)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while ABB's is 1.0914. This would suggest that ABB's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).

ABB overview

ABB Ltd manufactures and sells electrification, industrial automation, and robotics and motion products for customers in utilities, industry and transport, and infrastructure worldwide. Its Electrification segment provides electric vehicle charging infrastructure, renewable power solutions, modular substation packages, distribution automation products, switchboard and panel boards, switchgears, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions for integrating and automating lighting, heating, ventilation, security, and data communication networks. The company's Robotics & Discrete Automation segments provides industrial robots, software, robotic solutions and systems, field services, spare parts, and digital services. This segment also offers solutions based on its programmable logic controllers, industrial PCs, servo motion, transport systems, and machine vision. Its Industrial Automation segment develops and sells industry-specific, integrated automation, and electrification systems and solutions, as well as digital solutions, lifecycle services, and artificial intelligence applications for the process and hybrid industries. This segment also offers process and discrete control technologies, advanced process control software and manufacturing execution systems, sensing, measurement, analytical instrumentation, electric ship propulsion systems, and large turbochargers, as well as remote monitoring, preventive maintenance, asset performance management, and cybersecurity services. The company's Motion segment manufactures and sells drives, motors, generators, traction converters, and mechanical power transmission products. ABB Ltd has a strategic collaboration with IBM. ABB Ltd was founded in 1883 and is headquartered in Zurich, Switzerland.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

More on investing

More guides on Finder

Go to site