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Pfizer Inc

Exchange: NYSESector: HealthcareIndustry: Drug Manufacturers - General

At Pfizer Oncology, we are at the forefront of a new era in cancer care. Our industry-leading portfolio and extensive pipeline includes three core mechanisms of action to attack cancer from multiple angles, including small molecules, antibody-drug conjugates (ADCs), and multispecific antibodies, including other immune-oncology biologics. We are focused on delivering transformative therapies in some of the world's most common cancers, including breast cancer, gastrointestinal cancer, genitourinary cancer, hematology-oncology, and thoracic cancers, which includes lung cancer. Driven by science, we are committed to accelerating breakthroughs to help people with cancer live better and longer lives. About the Pfizer, Astellas and Merck Collaboration Seagen and Astellas entered a clinical collaboration agreement with Merck to evaluate the combination of Seagen's and Astellas' PADCEV™ (enfortumab vedotin) and Merck's Keytruda ® (pembrolizumab) in patients with muscle-invasive bladder cancer (MIBC) who are eligible for cisplatin-based chemotherapy. Seagen and Astellas entered a clinical collaboration agreement with Merck to evaluate the combination of Seagen's and Astellas' PADCEV™ (enfortumab vedotin) and Merck's Keytruda ® (pembrolizumab) in patients with muscle-invasive bladder cancer (MIBC) who are eligible for cisplatin-based chemotherapy. Pfizer Inc. successfully completed its acquisition of Seagen on December 14, 2023. Keytruda is a registered trademark of Merck Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc., Rahway, NJ, USA (known as MSD outside of the United States and Canada).

Did you know?

Free cash flow has been growing at -2.5% annually.

Current Price

$26.67

-0.49%

GoodMoat Value

$17.95

32.7% overvalued
Profile
Valuation (TTM)
Market Cap$151.64B
P/E19.52
EV$203.41B
P/B1.75
Shares Out5.69B
P/Sales2.42
Revenue$62.58B
EV/EBITDA14.39

Pfizer Inc (PFE) Valuation

GoodMoat Analysis

Based on data as of March 26, 2026

Pfizer's current price is significantly above the GoodMoat Target, indicating an unfavourable valuation with a negative margin of safety. While the P/E ratio is modest, it is justified by weak fundamentals including declining revenue and low growth. The primary appeal is the high dividend yield, but the stock appears expensive relative to its business quality.

Read full analysis
Based on the GoodMoat Investment Framework's valuation assessment, Pfizer's current price of $27.44 is 53% above the platform's fair value target of $17.95. This results in a negative margin of safety, placing it firmly in the 'Unfavourable' band per Section 4's DCF guidelines, which require a margin of at least 20% to be considered attractive. The forward P/E of approximately 20x is below the sector average for large pharmaceutical companies, which often trade in the low-to-mid 20s, and is near the lower end of its own historical range. However, this lower multiple is not a sign of value but a reflection of the company's challenged fundamentals, including a -1.2% YoY revenue decline and a modest ROE of 9.0%. The stock's valuation is not cheap relative to its quality, as it fails the initial 'Moat & Quality Gate' in the decision framework, lacking the high returns and growth profile that would justify a premium. The 6.3% dividend yield provides some support, but the core investment case based on price versus intrinsic value is unfavourable. Analysis based on data as of 2024-05-15.

PFE Fair Value Estimate

$17.9532.7% overvalued

Blended fair value estimate based on DCF, Graham Number, and earnings-based models.

PFE Valuation Metrics

FCF$9.07B
FCF Growth Rate-2.47%
EPS Growth (CAGR)-11.37%
WACC10.00%

PFE Valuation & Fair Value Analysis

Pfizer Inc (PFE) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.

The GoodMoat Fair Value target for Pfizer Inc is $17.95. The current stock price is $26.67, suggesting the stock is 48.5% overvalued.

The price-to-earnings (P/E) ratio is 19.52. Price-to-book ratio is 1.75. Price-to-sales ratio is 2.42. Enterprise value to EBITDA is 14.39. PEG ratio is -0.04.

GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Pfizer Inc's intrinsic value.