Highly Regarded

Is Pfizer Inc. (PFE) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Healthcare sector peers in our coverage

52% Discount TTM fundamentals · sector averages from covered peers

PFE trades at 14.6× TTM earnings — a 52% discount to its Healthcare sector average of 30.3× in our coverage.

The Numbers

P/E (TTM)

14.6×

Sector avg: 30.3×

P/S (TTM)

2.3×

Sector avg: 7.5×

Market Cap

$142.43B

EPS (TTM): $1.72

Revenue (TTM)

$62.78B

Net income: $9.87B

Healthcare Peer Comparison

How PFE's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
PFE This page $25.05 14.6×
LLY $1178.79 57.7×
JNJ $253.02 24.4×
UNH $426.15 22.2×
MRK $127.48 16.8×

Is the Discount Justified?

July 12, 2026

Pfizer Inc.'s trailing twelve-month (TTM) P/E of 14.1x represents a notable discount compared to the Healthcare sector average of 27.1x. This valuation largely reflects investor concerns surrounding the company's impending "patent cliff," with several key blockbuster drugs, including Eliquis and Ibrance, facing patent expirations and projected revenue losses of $14-$18 billion annually by 2030. To mitigate this, Pfizer is aggressively pursuing a strategy of pipeline development and strategic acquisitions, such as the $43 billion acquisition of oncology company Seagen and investment in GLP-1 drugs. The company's launched and acquired products portfolio demonstrated a 22% year-over-year revenue increase in Q1, indicating progress in offsetting future revenue declines. Additionally, the pharmaceutical industry is navigating evolving dynamics, including the impact of the Inflation Reduction Act on drug pricing and increasing adoption of AI in drug discovery. The current discount suggests the market is pricing in the significant challenges of replacing lost revenue, despite Pfizer's proactive measures.

Sources

Frequently Asked Questions

Is PFE overvalued or undervalued?
On trailing-twelve-month earnings, PFE trades at 14.6x versus a Healthcare sector average of 30.3x in our coverage — a 51.9% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing PFE with its own Healthcare peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Healthcare names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Healthcare peers

JNJ UNH MRK LLY ABBV