Highly Regarded

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

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

46% Discount TTM fundamentals · sector averages from covered peers

PFE trades at 17.2× TTM earnings — a 46% discount to its Healthcare sector average of 31.7× in our coverage.

The Numbers

P/E (TTM)

17.2×

Sector avg: 31.7×

P/S (TTM)

2.7×

Sector avg: 8.0×

Market Cap

$167.90B

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 $29.53 17.2×
LLY $1261.58 61.7×
JNJ $255.44 24.7×
MRK $146.95 19.4×
UNH $402.00 20.9×

Is the Discount Justified?

October 4, 2026

Pfizer's P/E of 16.2x, a notable discount to the healthcare sector average of 27.0x, is largely influenced by the impending patent cliff. Key blockbuster drugs, including Prevnar 13, Eliquis, and Xtandi, face patent expirations starting in 2026, potentially leading to a significant revenue loss of $14 billion to $20 billion by 2030. This expected decline in sales pressures the valuation. However, Pfizer is actively working to offset these losses through its robust pipeline, with new products anticipated to add over $15 billion in revenues by 2025. Recently launched and acquired medicines are also showing operational growth, indicating efforts to diversify and rebuild its revenue base.

Sources

Frequently Asked Questions

Is PFE overvalued or undervalued?
On trailing-twelve-month earnings, PFE trades at 17.2x versus a Healthcare sector average of 31.7x in our coverage — a 45.8% 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.

Keep Digging on PFE

Pfizer Inc. Overview

Price, chart, analysis & financials

PFE: Overbought or Oversold?

Updated daily

PFE: Why Is It Moving?

Updated daily

PFE: Price Prediction

Updated daily

Same question, Healthcare peers

MRK ABBV UNH JNJ LLY