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Arphra AIPlain-English read on Pfizer Inc.’s valuationOverview
Discounted cash flow
Income / accounting-based
Multiples & assets
Scenario
Toolbox
Weighted blend
$75.85
+189.84% vs spot
Strong Buy
Spot price
$26.17
Mkt cap $149.15B
subtle cardAnalyst PT consensus
$27.27
+4.20% vs spot
subtle cardMethods covered
18 / 19
15 in blend
subtle cardFootball field
PFE · fair-value range by method
Method comparison
PFE · fair value by valuation framework
| Method | Category | Fair value | Range | vs spot | Weight | Driver | Conf. |
|---|---|---|---|---|---|---|---|
| DCF · FCFF | dcf | $132.57 | $82.55 – $237.30 | +406.59% | 22.3% | WACC 5.0%, g₀=25.0%, gₗ=2.0% | high |
| DCF · FCFE | dcf | $78.87 | $54.50 – $122.86 | +201.36% | 16.8% | kₑ 5.8%, g₀=25.0%, gₗ=2.0% | high |
| DDM · Gordon | ddm | $45.58 | $36.13 – $61.75 | +74.18% | — | D₁ 1.71, kₑ 5.8%, gₗ 2.0% | med |
| DDM · H-model | ddm | $96.98 | $71.55 – $140.44 | +270.56% | — | D₀ 1.71, g₀=25.0%, gₗ=2.0%, H 5y | med |
| DDM · multi-stage | ddm | $75.48 | $64.16 – $86.80 | +188.42% | 5.6% | 5y schedule 25.0% → 2.0%, kₑ 5.8% | high |
| Residual income | income | $16.22 | $14.28 – $18.17 | -38.00% | 11.2% | BV 15.16, ROE 9.0% → kₑ | high |
| EVA / MVA | income | $197.00 | $173.36 – $220.63 | +652.75% | 7.8% | IC 153.0B, WACC 5.0% | high |
| P/E · sector | multiple | $29.92 | $26.33 – $33.51 | +14.33% | 13.4% | EPS 1.36 × peer P/E 22.0 | med |
| P/S · sector | multiple | $43.74 | $37.18 – $50.30 | +67.13% | 3.4% | Rev/sh 10.93 × peer P/S 4.00 | med |
| EV / EBITDA | multiple | $27.99 | $24.63 – $31.34 | +6.94% | 11.2% | EBITDA × peer 15.0× − ND 66.3B | high |
| EV / EBIT | multiple | $36.97 | $31.43 – $42.52 | +41.27% | 2.2% | EBIT × peer 18.0× − ND | med |
| EV / Sales | multiple | $25.60 | $21.76 – $29.44 | -2.19% | 2.2% | Sales × peer 3.40× − ND | med |
| PEG-anchored | multiple | $54.40 | $46.24 – $62.56 | +107.87% | 1.1% | PEG=1, fwd EPS g 117.7% | med |
| Earnings power | intrinsic | $42.28 | $37.21 – $47.36 | +61.57% | 0.6% | NOPAT / WACC, no growth | med |
| Graham revised | intrinsic | $65.07 | $55.31 – $74.83 | +148.65% | 0.6% | EPS×(8.5+2g)·4.4/Y | low |
| Lynch P/E=g | intrinsic | $34.00 | $28.90 – $39.10 | +29.92% | 0.6% | PE = g (25.0) | low |
| Book NAV | asset | $15.16 | $14.40 – $15.92 | -42.06% | 1.1% | (Assets − Liabilities) / Shares | high |
| Liquidation | asset | $4.31 | $3.66 – $4.96 | -83.53% | — | Cash 100% + non-cash 70% − Liab. | low |
| Reverse DCF | reverse | — | — | — | — | Implied g -5.7% · Pessimistic — market pricing decline | high |
Cost-of-capital build-up
CAPM cost of equity, after-tax cost of debt, WACC. Risk-free as of 2026-05-12.
| Risk-free rate (US 10y Treasury)rf | 4.46% |
| Equity beta (0.30)β | × 0.30 |
| Equity risk premiumERP | 4.46% |
| Cost of equity (CAPM)kₑ | 5.82% |
| Pre-tax cost of debtkd | 3.96% |
| Effective tax ratet | 0.0% |
| After-tax cost of debt | 3.96% |
| Equity weight$86.8B | 56.3% |
| Debt weight$67.4B | 43.7% |
| WACC | 5.01% |
Growth assumptions
Blended forward growth used as DCF default; terminal pegged to long-run nominal GDP.
| Analyst forward revenue growthFMP | -1.34% |
| Analyst forward EPS growthFMP | 117.74% |
| Historical 5y revenue CAGRFY | -6.33% |
| Historical 5y EPS CAGRFY | -23.05% |
| Sustainable g (ROE × retention)Δ | 0.00% |
| Blended near-term growth (g₀) | 25.00% |
| Terminal growth (gₗ) | 2.00% |
Sources
- FMP /analyst-estimates— 8 rows(as of 2023-12-31)
- Treasury rates · 10y— 4.46% rf(as of 2026-05-12)
- market_risk_premium · DB— 4.46% ERP(as of 2026-05-13)
- Sector multiple defaults— Healthcare (live sector PE unavailable)
- FMP /price-target-consensus— mean $27.27
This page is generated by a quantitative valuation engine for research purposes only and does not constitute investment advice. Methodology follows standard CFA / Damodaran frameworks; assumptions are driven by analyst consensus from Financial Modeling Prep and reported financial statements.