Is Pfizer Inc (PFE) overvalued?
On Equity Rank's model estimate, PFE trades close to its fair value (2% below it). Pfizer Inc (PFE) last closed at $29.39; the multi-method model fair value is $30.13.
| Price | Model fair value | Price vs model |
|---|---|---|
| $29.39 | $30.13 | 3% below |
What the answer rests on
- 4 of 10 valuation methods put PFE's value above its price and 6 put it below, so the methods disagree.
- To justify today's price, PFE's free cash flow would need to grow about -1.8% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -29.6% a year.
- PFE trades at 44.0 times its last year's earnings, against a median of 27.2 for 14 profitable Drug Manufacturer companies.
- Over the past year the price sat below the model fair value on 93% of trading days. The gap ranged from 37% below to 9% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind PFE's fair value · What prices assume · Other companies