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Pfizer’s Valuation as of May 22

Mike Benson - Author
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Nov. 20 2020, Updated 10:41 a.m. ET

A look at Pfizer’s valuation

Pfizer (PFE) reported a 1% growth in revenues to $12.9 billion in the first quarter compared to $12.8 billion in the first quarter of 2017. It surpassed Wall Street analysts’ estimate for EPS but missed the revenue estimate. It reported EPS of $0.77 on revenues of $12.9 billion compared to the EPS estimate of $0.74 on revenues of $13.1 billion.

The above chart compares Pfizer’s EPS and revenues since Q1 2017.

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First-quarter performance

Pfizer’s top line in the first quarter increased 1% to $12.9 billion with a $430 million favorable impact of foreign exchange, which is a 3% growth. It was offset by a decrease of 2% in operating revenues. Let’s look next at the valuation multiples for Pfizer and some of its competitors.

Forward PE

PE multiples represent what one share can buy for an equity investor. Pfizer was trading at a forward PE multiple of 12.0x on May 22 compared to the industry average of 15.0x. Competitors Eli Lilly (LLY), GlaxoSmithKline (GSK), and Merck & Co. (MRK) have forward PE multiples of 15.4x, 13.6x, and 13.5x, respectively.

Forward enterprise-value-to-EBITDA

On a capital-structure-neutral basis, Pfizer currently trades at a forward enterprise-value-to-EBITDA multiple of 10.3x, which is much lower than the industry average of 11.6x as of May 22. Eli Lilly (LLY), GlaxoSmithKline (GSK), and Merck & Co. (MRK) have forward enterprise-value-to-EBITDA multiples of 12.4x, 9.3x, and 11.1x, respectively.

The SPDR S&P Pharmaceuticals ETF (XPH) holds 4.2% of its total investments in Pfizer (PFE), 4.4% in Eli Lilly (LLY), and 4.6% in Merck & Co. (MRK).

Check out all the data we’ve added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data, as well as dividend information. Take a look!

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