Pharmaceutical giant Pfizer beat earnings expectations this week, the company lifted its guidance and also announced plans to donate Covid-19 vaccines to Olympic athletes for the upcoming summer games.
Turned into a mainstream discussion topic by the pandemic, the pharmaceutical giant capitalized on its success in creating a vaccine to reap huge rewards, for the year 2021, Pfizer estimates it could generate as much as $26 billion in revenue, an increase from earlier estimates of “just” $15 billion.
That said, many analysts remain cautious about the company’s outlook beyond the pandemic, as concerns over its long term pipeline remain.
But what is Pfizer really worth:
With a market cap of $223Bn the company is the 3rd largest in its market, behind JnJ and Roche, but is it fairly valued?
Our income based models, both DCF and DDM seem to suggest it could be as much as $100Bn undervalued, as they both yield values north of $300Bn (assuming, per analysts consensus estimates that 2021 revenue represents nearly 70% growth over 2020, and that 2022 would see a large retraction post-vaccine).
But our market based methods seem more in line with the company’s current market cap, closer to $250Bn
What is your outlook on the pharma behemoth?
Link to the valuation: https://valutico.com/companies/pfizer-inc-2560cf49-4d10-4316-afa3-23d606bcbc4c/evaluations/I84M2X6WrO6JcS7CdW9cFpJzPbi6IuDv6lnHIpPCWZGdRWXpZ6JUmuXQSmn4XQWXoC6UgUmGyGRc5vRT28FRRA/share