* Note: Prices are in Million (M) USD.
Description:
Pfizer Inc. is an American multinational pharmaceutical and biotechnology corporation headquartered on 42nd Street in Manhattan, New York City. The name of the company commemorates its co-founder, Charles Pfizer (1824-1906). Pfizer develops and produces medicines and vaccines for immunology, oncology, cardiology, endocrinology, and neurology. The company has several blockbuster drugs or products that each generate more than 1 billion USD in annual revenues.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,638 M
Debt : $61,797 M
EBITDA : $22,775 M
Net Debt (Debt - Cash): $60,159 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Healthcare
Industry: Drug manufacturers - major
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 7.70
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $14,717 M
Average Revenue: $56,097 M
Revenue Converted To Free Cash Flow (%): 26.2%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $63,627 M
Revenue 4 Years Ago (2020-12-31): $41,651 M
Last 5 Years Average Revenue Growth: 11%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $5,700 M
Share Count 5 Years Ago (2020-12-31): $5,632 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.29
Trailing 12-Month Earnings Per Share (EPS): $3.14
Average Earnings Per Share (EPS): $3.22
Dividend Per Share (DPS): $2
Payout Ratio: 53%
Dividend Yield: 7%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 15.3%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $25
52-Week Low: $20
Threshold Price (15% Above 52-Week Low): $23
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $139,865 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 29 points to above Pfizer Inc (PFE) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
30.99 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 20 Years Avg P/E (12.00)
× EPS ($3.22) = $38.58.
Last 20 Years Avg PE 12, Fair Value PE 15, Industry Based PE 14, Growth Based PE 10, RCFC Based PE 30.99, ROE Based PE 22.27, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 17.33. Value-Trades has assined P/E value 17.33. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.215.
The fair value of Pfizer Inc (PFE) stock should be (17.33 x $3.215) = $55.73.
