Pfizer Inc. (PFE) Stock Valuation — PE Analysis
Drug Manufacturers - General · NYSE
Current Price
$24.79
PE Ratio (TTM)
18.9x
Intrinsic Value
$18.44
-34.4% margin of safety
COMPETITIVE MOAT
↑Patent Protection & R&D Pipeline
Pfizer benefits from patent exclusivity on its blockbuster drugs, providing a temporary monopoly. Its extensive R&D pipeline offers potential for future revenue streams and market dominance.
↑Global Manufacturing & Distribution Scale
The company's vast manufacturing capacity and established global distribution network create significant barriers to entry. This scale allows for efficient production and broad market access.
↑Brand Reputation & Trust
Pfizer's long-standing reputation for developing life-saving medicines fosters trust among healthcare providers and patients. This brand equity can influence prescribing decisions and market acceptance.
INVESTMENT RISKS
↓Pipeline Failure & R&D Uncertainty
The success of future revenue hinges on the R&D pipeline, which carries inherent risks of clinical trial failures or lack of market adoption. A stalled pipeline can significantly impact future growth.
↓Litigation & Product Liability
Pfizer faces ongoing litigation risks related to its products, which can result in substantial financial penalties and reputational damage. These legal battles can be costly and unpredictable.
↓Geopolitical & Economic Instability
Global economic downturns or geopolitical conflicts can disrupt supply chains, impact demand for pharmaceuticals, and affect currency exchange rates. These external factors pose broad operational challenges.
Base case
PFE base case PE valuation
At a current price of $24.79, the base case PE valuation puts PFE fair value near $18.44 per share. That figure assumes -2.4% yearly earnings growth, a target PE multiple of 19x, and a 10% discount rate.
Intrinsic Value
$18.44
Margin of safety
-34.4%
Expected annual return
-5.7%
Base case assumptions: -2.4% annual earnings growth, 19x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the PFE PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Pfizer Inc. respond.
Open PE Calculator for PFECompany Overview
Pfizer Inc. is a global biopharmaceutical leader engaged in the research, development, production, marketing, and distribution of a wide array of medicinal and vaccine products worldwide. Its comprehensive portfolio addresses diverse therapeutic areas, including cardiovascular health and women's health, featuring key brands such as the Premarin family and Eliquis. The company also offers advanced biologics, small molecule drugs, immunotherapies, and biosimilars for various conditions, exemplified by Ibrance, Xtandi, and Retacrit. Furthermore, Pfizer provides sterile injectables, anti-infective agents, and a significant oral treatment for COVID-19, including Paxlovid. A substantial portion of its offerings comprises vaccines for infectious diseases such as pneumococcal and meningococcal disease, tick-borne encephalitis, and COVID-19, with notable products like Comirnaty and the Prevnar family. The firm also develops biosimilars for chronic autoimmune and inflammatory disorders, including Inflectra and Xeljanz, alongside specialized therapies for rare conditions like amyloidosis, hemophilia, and endocrine disorders, under brands such as Vyndaqel and BeneFIX. Beyond its proprietary products, Pfizer operates a contract manufacturing division. Its extensive customer base includes wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, individual medical practices, and public health organizations. The company actively fosters strategic collaborations with numerous partners, such as Bristol-Myers Squibb Company, BioNTech SE, and Merck KGaA. Established in 1849, Pfizer Inc. is headquartered in New York, New York.
Financial Metrics — PFE PE Stock Valuation Data
PE Ratio (TTM)
18.9x
PEG Ratio
n/m
Earnings Yield
5.31%
ROE (TTM)
8.4%
Revenue/Share (TTM)
$11.13
Dividend Yield
6.94%
Debt/Equity
0.72x
Frequently Asked Questions
What is the PE ratio of PFE?
The trailing twelve-month PE ratio of PFE reflects how much investors pay per dollar of Pfizer Inc.'s earnings. This metric is most useful when compared to Drug Manufacturers - General peers and the company's own historical range.
Is PFE overvalued based on PE ratio?
PFE's PE of 18.9x combined with a PEG ratio of -3.29 provides a growth-adjusted perspective. PFE has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Drug Manufacturers - General, a DCF analysis may be more appropriate.
How do I value PFE stock using PE ratio?
To value Pfizer Inc. using PE: (1) Compare the current PE (18.9x) against the Drug Manufacturers - General median to assess relative pricing, (2) check the PEG ratio (-3.29) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of PFE?
PFE's PEG ratio is -3.29, calculated by dividing the PE ratio (18.9x) by the expected earnings growth rate. Because PFE has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for PFE stock valuation?
PE ratio gives a quick relative read — how PFE is priced versus Drug Manufacturers - General peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See PFE DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value PFE with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.