Intrinsic value of Pfizer - PFE

Previous Close

$43.93

  Intrinsic Value

$30.95

stock screener

  Rating & Target

sell

-30%

Previous close

$43.93

 
Intrinsic value

$30.95

 
Up/down potential

-30%

 
Rating

sell

We calculate the intrinsic value of PFE stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 257.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  4.40
  4.46
  4.51
  4.56
  4.61
  4.65
  4.68
  4.71
  4.74
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
  4.93
  4.94
  4.95
  4.95
  4.96
  4.96
  4.97
  4.97
  4.97
Revenue, $m
  54,858
  57,305
  59,891
  62,624
  65,509
  68,552
  71,761
  75,143
  78,706
  82,459
  86,409
  90,567
  94,942
  99,544
  104,385
  109,475
  114,827
  120,453
  126,367
  132,583
  139,116
  145,980
  153,193
  160,771
  168,733
  177,097
  185,883
  195,112
  204,807
  214,989
Variable operating expenses, $m
  45,730
  47,302
  48,965
  50,721
  52,576
  54,532
  56,594
  58,768
  61,058
  63,470
  55,540
  58,213
  61,025
  63,983
  67,094
  70,366
  73,806
  77,422
  81,224
  85,219
  89,418
  93,830
  98,466
  103,337
  108,455
  113,831
  119,478
  125,410
  131,641
  138,186
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  45,730
  47,302
  48,965
  50,721
  52,576
  54,532
  56,594
  58,768
  61,058
  63,470
  55,540
  58,213
  61,025
  63,983
  67,094
  70,366
  73,806
  77,422
  81,224
  85,219
  89,418
  93,830
  98,466
  103,337
  108,455
  113,831
  119,478
  125,410
  131,641
  138,186
Operating income, $m
  9,128
  10,002
  10,926
  11,903
  12,933
  14,020
  15,167
  16,375
  17,648
  18,988
  30,869
  32,354
  33,917
  35,561
  37,290
  39,109
  41,021
  43,031
  45,144
  47,364
  49,698
  52,150
  54,727
  57,434
  60,278
  63,266
  66,405
  69,702
  73,165
  76,803
EBITDA, $m
  23,234
  24,270
  25,365
  26,523
  27,744
  29,033
  30,392
  31,825
  33,334
  34,923
  36,596
  38,357
  40,210
  42,159
  44,209
  46,365
  48,632
  51,015
  53,520
  56,152
  58,919
  61,826
  64,881
  68,090
  71,462
  75,005
  78,726
  82,635
  86,740
  91,053
Interest expense (income), $m
  1,451
  2,349
  2,585
  2,838
  3,105
  3,387
  3,685
  3,999
  4,330
  4,680
  5,047
  5,435
  5,843
  6,272
  6,723
  7,199
  7,698
  8,224
  8,776
  9,357
  9,968
  10,609
  11,284
  11,992
  12,737
  13,519
  14,341
  15,205
  16,112
  17,065
  18,065
Earnings before tax, $m
  6,780
  7,417
  8,088
  8,798
  9,546
  10,335
  11,168
  12,045
  12,968
  13,941
  25,434
  26,512
  27,645
  28,838
  30,092
  31,411
  32,797
  34,255
  35,786
  37,396
  39,088
  40,866
  42,734
  44,697
  46,759
  48,925
  51,200
  53,590
  56,101
  58,737
Tax expense, $m
  1,831
  2,003
  2,184
  2,375
  2,577
  2,791
  3,015
  3,252
  3,501
  3,764
  6,867
  7,158
  7,464
  7,786
  8,125
  8,481
  8,855
  9,249
  9,662
  10,097
  10,554
  11,034
  11,538
  12,068
  12,625
  13,210
  13,824
  14,469
  15,147
  15,859
Net income, $m
  4,949
  5,414
  5,905
  6,422
  6,969
  7,545
  8,152
  8,792
  9,467
  10,177
  18,567
  19,353
  20,181
  21,052
  21,967
  22,930
  23,942
  25,006
  26,124
  27,299
  28,535
  29,832
  31,196
  32,629
  34,134
  35,715
  37,376
  39,121
  40,953
  42,878

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  179,275
  187,270
  195,724
  204,654
  214,081
  224,026
  234,513
  245,566
  257,210
  269,473
  282,382
  295,970
  310,267
  325,307
  341,126
  357,761
  375,251
  393,638
  412,965
  433,279
  454,627
  477,060
  500,631
  525,396
  551,415
  578,748
  607,461
  637,622
  669,303
  702,579
Adjusted assets (=assets-cash), $m
  179,275
  187,270
  195,724
  204,654
  214,081
  224,026
  234,513
  245,566
  257,210
  269,473
  282,382
  295,970
  310,267
  325,307
  341,126
  357,761
  375,251
  393,638
  412,965
  433,279
  454,627
  477,060
  500,631
  525,396
  551,415
  578,748
  607,461
  637,622
  669,303
  702,579
Revenue / Adjusted assets
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
  0.306
Average production assets, $m
  69,450
  72,548
  75,823
  79,282
  82,934
  86,787
  90,850
  95,131
  99,642
  104,393
  109,394
  114,658
  120,196
  126,023
  132,151
  138,595
  145,371
  152,494
  159,981
  167,851
  176,121
  184,811
  193,942
  203,536
  213,616
  224,205
  235,328
  247,012
  259,285
  272,176
Working capital, $m
  713
  745
  779
  814
  852
  891
  933
  977
  1,023
  1,072
  1,123
  1,177
  1,234
  1,294
  1,357
  1,423
  1,493
  1,566
  1,643
  1,724
  1,809
  1,898
  1,992
  2,090
  2,194
  2,302
  2,416
  2,536
  2,662
  2,795
Total debt, $m
  47,878
  52,555
  57,500
  62,724
  68,239
  74,057
  80,192
  86,658
  93,470
  100,643
  108,196
  116,144
  124,508
  133,307
  142,561
  152,292
  162,524
  173,280
  184,587
  196,470
  208,959
  222,082
  235,871
  250,359
  265,580
  281,569
  298,367
  316,011
  334,544
  354,011
Total liabilities, $m
  104,876
  109,553
  114,498
  119,722
  125,237
  131,055
  137,190
  143,656
  150,468
  157,641
  165,194
  173,142
  181,506
  190,305
  199,559
  209,290
  219,522
  230,278
  241,585
  253,468
  265,957
  279,080
  292,869
  307,357
  322,578
  338,567
  355,365
  373,009
  391,542
  411,009
Total equity, $m
  74,399
  77,717
  81,225
  84,931
  88,844
  92,971
  97,323
  101,910
  106,742
  111,831
  117,189
  122,828
  128,761
  135,002
  141,567
  148,471
  155,729
  163,360
  171,381
  179,811
  188,670
  197,980
  207,762
  218,039
  228,837
  240,180
  252,096
  264,613
  277,761
  291,570
Total liabilities and equity, $m
  179,275
  187,270
  195,723
  204,653
  214,081
  224,026
  234,513
  245,566
  257,210
  269,472
  282,383
  295,970
  310,267
  325,307
  341,126
  357,761
  375,251
  393,638
  412,966
  433,279
  454,627
  477,060
  500,631
  525,396
  551,415
  578,747
  607,461
  637,622
  669,303
  702,579
Debt-to-equity ratio
  0.640
  0.680
  0.710
  0.740
  0.770
  0.800
  0.820
  0.850
  0.880
  0.900
  0.920
  0.950
  0.970
  0.990
  1.010
  1.030
  1.040
  1.060
  1.080
  1.090
  1.110
  1.120
  1.140
  1.150
  1.160
  1.170
  1.180
  1.190
  1.200
  1.210
Adjusted equity ratio
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  4,949
  5,414
  5,905
  6,422
  6,969
  7,545
  8,152
  8,792
  9,467
  10,177
  18,567
  19,353
  20,181
  21,052
  21,967
  22,930
  23,942
  25,006
  26,124
  27,299
  28,535
  29,832
  31,196
  32,629
  34,134
  35,715
  37,376
  39,121
  40,953
  42,878
Depreciation, amort., depletion, $m
  14,105
  14,268
  14,439
  14,620
  14,811
  15,013
  15,226
  15,450
  15,686
  15,935
  5,727
  6,003
  6,293
  6,598
  6,919
  7,256
  7,611
  7,984
  8,376
  8,788
  9,221
  9,676
  10,154
  10,656
  11,184
  11,738
  12,321
  12,933
  13,575
  14,250
Funds from operations, $m
  19,055
  19,682
  20,344
  21,042
  21,780
  22,558
  23,378
  24,242
  25,153
  26,112
  24,294
  25,356
  26,474
  27,650
  28,886
  30,186
  31,553
  32,990
  34,500
  36,087
  37,756
  39,508
  41,350
  43,285
  45,318
  47,454
  49,697
  52,053
  54,529
  57,128
Change in working capital, $m
  30
  32
  34
  36
  38
  40
  42
  44
  46
  49
  51
  54
  57
  60
  63
  66
  70
  73
  77
  81
  85
  89
  94
  99
  104
  109
  114
  120
  126
  132
Cash from operations, $m
  19,025
  19,650
  20,310
  21,007
  21,742
  22,518
  23,336
  24,199
  25,107
  26,063
  24,243
  25,302
  26,417
  27,590
  28,823
  30,120
  31,483
  32,917
  34,423
  36,007
  37,671
  39,419
  41,256
  43,187
  45,215
  47,345
  49,583
  51,933
  54,403
  56,996
Maintenance CAPEX, $m
  -3,484
  -3,636
  -3,798
  -3,970
  -4,151
  -4,342
  -4,544
  -4,757
  -4,981
  -5,217
  -5,466
  -5,727
  -6,003
  -6,293
  -6,598
  -6,919
  -7,256
  -7,611
  -7,984
  -8,376
  -8,788
  -9,221
  -9,676
  -10,154
  -10,656
  -11,184
  -11,738
  -12,321
  -12,933
  -13,575
New CAPEX, $m
  -2,911
  -3,097
  -3,275
  -3,459
  -3,652
  -3,853
  -4,063
  -4,282
  -4,511
  -4,750
  -5,001
  -5,264
  -5,539
  -5,826
  -6,128
  -6,444
  -6,776
  -7,123
  -7,487
  -7,869
  -8,270
  -8,690
  -9,131
  -9,594
  -10,079
  -10,589
  -11,123
  -11,684
  -12,273
  -12,891
Cash from investing activities, $m
  -6,395
  -6,733
  -7,073
  -7,429
  -7,803
  -8,195
  -8,607
  -9,039
  -9,492
  -9,967
  -10,467
  -10,991
  -11,542
  -12,119
  -12,726
  -13,363
  -14,032
  -14,734
  -15,471
  -16,245
  -17,058
  -17,911
  -18,807
  -19,748
  -20,735
  -21,773
  -22,861
  -24,005
  -25,206
  -26,466
Free cash flow, $m
  12,630
  12,917
  13,237
  13,578
  13,940
  14,323
  14,730
  15,160
  15,615
  16,096
  13,776
  14,311
  14,876
  15,470
  16,097
  16,757
  17,451
  18,183
  18,952
  19,761
  20,613
  21,508
  22,449
  23,439
  24,479
  25,572
  26,721
  27,928
  29,197
  30,530
Issuance/(repayment) of debt, $m
  4,387
  4,677
  4,945
  5,224
  5,515
  5,818
  6,135
  6,466
  6,812
  7,174
  7,552
  7,949
  8,364
  8,798
  9,254
  9,731
  10,232
  10,756
  11,307
  11,883
  12,489
  13,123
  13,789
  14,488
  15,221
  15,990
  16,797
  17,644
  18,533
  19,466
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  4,387
  4,677
  4,945
  5,224
  5,515
  5,818
  6,135
  6,466
  6,812
  7,174
  7,552
  7,949
  8,364
  8,798
  9,254
  9,731
  10,232
  10,756
  11,307
  11,883
  12,489
  13,123
  13,789
  14,488
  15,221
  15,990
  16,797
  17,644
  18,533
  19,466
Total cash flow (excl. dividends), $m
  17,016
  17,594
  18,182
  18,802
  19,454
  20,142
  20,865
  21,626
  22,427
  23,269
  21,328
  22,260
  23,239
  24,269
  25,351
  26,488
  27,683
  28,939
  30,258
  31,645
  33,101
  34,631
  36,238
  37,926
  39,700
  41,562
  43,518
  45,573
  47,730
  49,996
Retained Cash Flow (-), $m
  -3,091
  -3,318
  -3,508
  -3,706
  -3,912
  -4,127
  -4,352
  -4,587
  -4,832
  -5,089
  -5,358
  -5,639
  -5,933
  -6,242
  -6,565
  -6,903
  -7,258
  -7,631
  -8,021
  -8,430
  -8,859
  -9,310
  -9,782
  -10,278
  -10,798
  -11,343
  -11,916
  -12,517
  -13,148
  -13,810
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  13,925
  14,276
  14,674
  15,096
  15,542
  16,014
  16,513
  17,039
  17,595
  18,180
  15,971
  16,621
  17,306
  18,027
  18,786
  19,585
  20,425
  21,308
  22,238
  23,215
  24,242
  25,321
  26,456
  27,649
  28,902
  30,219
  31,602
  33,056
  34,583
  36,187
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  13,351
  13,069
  12,770
  12,430
  12,047
  11,622
  11,156
  10,650
  10,107
  9,531
  7,584
  7,093
  6,580
  6,052
  5,515
  4,977
  4,444
  3,924
  3,424
  2,950
  2,507
  2,101
  1,734
  1,408
  1,124
  882
  678
  511
  378
  272
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Pfizer Inc. (Pfizer) is a research-based global biopharmaceutical company. The Company is engaged in the discovery, development and manufacture of healthcare products. Its global portfolio includes medicines and vaccines, as well as consumer healthcare products. The Company manages its commercial operations through two business segments: Pfizer Innovative Health (IH) and Pfizer Essential Health (EH). IH focuses on developing and commercializing medicines and vaccines, as well as products for consumer healthcare. IH therapeutic areas include internal medicine, vaccines, oncology, inflammation and immunology, rare diseases and consumer healthcare. EH includes legacy brands, branded generics, generic sterile injectable products, biosimilars and infusion systems. EH also includes a research and development (R&D) organization, as well as its contract manufacturing business. Its brands include Prevnar 13, Xeljanz, Eliquis, Lipitor, Celebrex, Pristiq and Viagra.

FINANCIAL RATIOS  of  Pfizer (PFE)

Valuation Ratios
P/E Ratio 37
Price to Sales 5
Price to Book 4.5
Price to Tangible Book
Price to Cash Flow 16.8
Price to Free Cash Flow 19.2
Growth Rates
Sales Growth Rate 8.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 33.6%
Cap. Spend. - 3 Yr. Gr. Rate 6.4%
Financial Strength
Quick Ratio 2
Current Ratio 0.2
LT Debt to Equity 52.7%
Total Debt to Equity 70.7%
Interest Coverage 7
Management Effectiveness
Return On Assets 5%
Ret/ On Assets - 3 Yr. Avg. 5.3%
Return On Total Capital 7%
Ret/ On T. Cap. - 3 Yr. Avg. 7.3%
Return On Equity 11.6%
Return On Equity - 3 Yr. Avg. 11.4%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 76.7%
Gross Margin - 3 Yr. Avg. 79.3%
EBITDA Margin 29.5%
EBITDA Margin - 3 Yr. Avg. 33.3%
Operating Margin 17%
Oper. Margin - 3 Yr. Avg. 21.3%
Pre-Tax Margin 15.8%
Pre-Tax Margin - 3 Yr. Avg. 19.6%
Net Profit Margin 13.7%
Net Profit Margin - 3 Yr. Avg. 15.4%
Effective Tax Rate 13.4%
Eff/ Tax Rate - 3 Yr. Avg. 20.4%
Payout Ratio 101.4%

PFE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PFE stock intrinsic value calculation we used $52546 million for the last fiscal year's total revenue generated by Pfizer. The default revenue input number comes from 0001 income statement of Pfizer. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our PFE stock valuation model: a) initial revenue growth rate of 4.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for PFE is calculated based on our internal credit rating of Pfizer, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Pfizer.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of PFE stock the variable cost ratio is equal to 84.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for PFE stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Pfizer.

Corporate tax rate of 27% is the nominal tax rate for Pfizer. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the PFE stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for PFE are equal to 126.6%.

Life of production assets of 19.1 years is the average useful life of capital assets used in Pfizer operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for PFE is equal to 1.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $71308 million for Pfizer - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 5862.11 million for Pfizer is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Pfizer at the current share price and the inputted number of shares is $257.5 billion.

RELATED COMPANIES Price Int.Val. Rating
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GSK GlaxoSmithKlin 39.80 350.10  str.buy
JNJ Johnson&Johnso 136.56 176.79  buy
AZN AstraZeneca AD 39.08 162.71  str.buy
BMY Bristol-Myers 57.83 71.64  hold
AMGN Amgen 202.34 130.16  sell
REGN Regeneron Phar 398.52 335.37  hold

COMPANY NEWS

▶ Pfizer outlines early retirement program ahead of layoffs   [01:42PM  American City Business Journals]
▶ Battle brewing over TV drug ads   [Oct-16-18 06:11PM  CNBC Videos]
▶ US wants drug prices in TV ads: 'Patients deserve to know'   [Oct-15-18 09:41PM  Associated Press]
▶ 3 Healthcare Stocks to Buy Amid the Carnage   [12:09PM  InvestorPlace]
▶ Winners and losers   [Oct-12-18 05:38PM  Yahoo Finance Video]
▶ Why a Peninsula cancer fighter soared nearly 40% after record-breaking IPO   [Oct-11-18 05:34PM  American City Business Journals]
▶ Pfizer settles false advertising charges   [12:15PM  American City Business Journals]
▶ Company News For Oct 11, 2018   [10:01AM  Zacks]
▶ Final trades: Verizon, EOG Resources, Arconic & Pfizer   [Oct-10-18 01:43PM  CNBC Videos]
▶ [$$] Pfizer Prepares for CEO Transition With Executive Suite Changes   [Oct-09-18 10:54AM  The Wall Street Journal]
▶ Pfizer Announces Executive Leadership Team   [09:05AM  Business Wire]
▶ Dow Rallies Back, S&P 500 Retakes Key Support As Tech Stocks Fall   [Oct-08-18 04:20PM  Investor's Business Daily]
▶ The Uphill Fight Against Fake Prescription Drugs   [10:40AM  The Wall Street Journal]
▶ AP FACT CHECK: Trump on Kavanaugh accuser, drug prices, vets   [Oct-06-18 02:17PM  Associated Press]
▶ [$$] Lex letter from New York: chiefs checked   [07:11AM  Financial Times]
▶ The 5 Best Dow Jones Stocks to Buy Now   [Oct-02-18 03:16PM  InvestorPlace]
▶ [$$] Pfizer: pill will   [Oct-01-18 11:34PM  Financial Times]
▶ [$$] Pfizer Counts on Pipeline to Bring Growth   [08:38PM  The Wall Street Journal]
▶ [$$] Pfizer CEO Read to Step Aside at Years End   [08:38PM  The Wall Street Journal]
▶ Business Highlights   [05:53PM  Associated Press]
▶ Pfizer CEO Ian Read to Resign   [11:54AM  InvestorPlace]
▶ [$$] Stocks to Watch: GE, Tesla, Pfizer, Facebook and More   [09:00AM  The Wall Street Journal]
▶ Pfizer CEO set to resign, replacement named   [08:56AM  American City Business Journals]
▶ [$$] Pfizer CEO Read to Step Aside at Year's End   [07:40AM  The Wall Street Journal]
▶ [$$] Pfizer Counts on Pipeline to Bring Growth   [07:02AM  The Wall Street Journal]
▶ Pfizer Announces CEO Succession   [06:45AM  Business Wire]
▶ [$$] Lets Throw a Patent-Burning Party   [Sep-30-18 08:25PM  The Wall Street Journal]
▶ Better Buy: Novavax, Inc. vs. Pfizer Inc.   [07:01AM  Motley Fool]
▶ Final Trades: T, DIS & more   [Sep-28-18 05:47PM  CNBC Videos]

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