PFE
Pfizer Inc.
$25.08
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 18.9% below fair value
You pay
$25.08
Bear
$26.50
Fair
$30.92
Bull
$35.34
Bear
$26.50
+5.7%
$2.34 × 12x P/E
Fair
$30.92
+23.3%
$2.34 × 14x P/E
Bull
$35.34
+40.9%
$2.34 × 16x P/E
Key Value Driver
Normalized P/E multiple (14x base case)
Implied Market Multiple
10.7x
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 $26.75 from 39 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $30.92 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