Munger Mode rating: 3 out of 5 — Hold. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
The one-paragraph verdict: ABB has completed one of the better corporate transformations we've seen in the industrial world — from a sprawling, chronically underperforming conglomerate into a focused electrification and automation franchise earning returns on capital north of 20%, with record margins, a fortress balance sheet, and a genuine secular tailwind from the electrification of everything, data centers most of all. This is now a high-quality business run by capable, honest operators. But the market has noticed. At roughly 36 times trailing earnings — against a 15–22x range for most of the past decade — the price sits well above our estimate of intrinsic value. This is the first kind of three-star situation: a wonderful business at a premium. We would happily hold what we owned; we would not put new money in at $102.
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