Is AbbVie Stock Too Pricey to Touch Right Now?

For a company in the midst of a transition away from the medicine that made it a star performer over the last decade, 's (NYSE: ABBV) valuation looks surprisingly high. Why is the market pricing a business, which is barely expecting much growth over the next couple of years, so expensively? The market's expectations, it seems, are a bit out of whack with the company's fundamentals. 

But that doesn't necessarily mean that you need to avoid adding to your position right now. Here's what you need to know about this stock and its pricing in light of its upcoming opportunities and current struggles. 

At the moment, AbbVie's price-to-earnings (P/E) ratio is 31. The average P/E for the pharmaceutical industry is 19. There are a few possibilities as to why a stock's valuation could be higher than its peers, and it's important to understand them to assess whether AbbVie is too overpriced to buy. 

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Source Fool.com