PFE
Pfizer Inc.
$26.47
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 14.9% below fair value
You pay
$26.47
Bear
$26.65
Fair
$31.10
Bull
$35.54
Bear
$26.65
+0.7%
$2.34 × 12x P/E
Fair
$31.10
+17.5%
$2.34 × 14x P/E
Bull
$35.54
+34.2%
$2.34 × 16x P/E
Key Value Driver
Normalized P/E multiple (14x base case)
Implied Market Multiple
11.3x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $27.33 from 39 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $31.10 per share.
Warnings
The company's reported profits differ from official accounting profits by 72%. Check what costs are being left out of the adjusted number.
The company pays out 126% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples