Pfizer Inc. (PFE) DCF Valuation
Transparent DCF models put Pfizer Inc. (PFE)'s fair value in a range of $24.54 – $38.89 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $25.70 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $25.70, the market is pricing in roughly +5.4%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of -3.8%. The price is betting on acceleration above its track record.
Current Price
$25.70
Fair-Value Range
$24.54 – $38.89
Market-Implied Growth
+5.4%/yr
vs -3.8% 5Y actual
PFE DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $12.4B · 5.70B shares · net debt $64.0B
Estimated Fair Value
$24.54
-4.5% vs $25.70
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $25.70; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $33.22 | $35.50 | $38.19 | $41.43 | $45.38 |
| 9.0% | $26.95 | $28.51 | $30.31 | $32.41 | $34.88 |
| 10.0% | $22.18 | $23.28 | $24.54 | $25.98 | $27.63 |
| 11.0% | $18.42 | $19.23 | $20.14 | $21.16 | $22.32 |
| 12.0% | $15.40 | $16.01 | $16.68 | $17.43 | $18.27 |
About Pfizer Inc.
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.
- Sector
- Healthcare
- Industry
- Drug Manufacturers - General
- CEO
- Albert Bourla