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 16.6× TTM earnings — a 46% discount to its Healthcare sector average of 30.5× in our coverage.

The Numbers

P/E (TTM)

16.6×

Sector avg: 30.5×

P/S (TTM)

2.6×

Sector avg: 7.7×

Market Cap

$161.87B

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 $28.47 16.6×
LLY $1158.70 56.7×
JNJ $265.83 25.7×
MRK $147.86 19.5×
UNH $389.57 20.3×

Is the Discount Justified?

August 30, 2026

Pfizer's P/E ratio of 16.3x is significantly below the Healthcare sector average of 27.9x. This discount is largely attributable to the anticipated decline in COVID-19 product sales post-pandemic and upcoming patent expirations on key drugs. In Q2 2026, non-COVID product sales surged 18% operationally, offsetting a substantial drop in Paxlovid and Comirnaty revenues. However, the company reported a GAAP net loss due to $4.3 billion in intangible asset impairments. Pfizer has raised its 2026 revenue guidance, but the outlook still suggests flat to lower revenue compared to 2025. Strategic acquisitions and cost-cutting measures aim to drive future growth beyond 2028.

Sources

Frequently Asked Questions

Is PFE overvalued or undervalued?
On trailing-twelve-month earnings, PFE trades at 16.6x versus a Healthcare sector average of 30.5x 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

UNH JNJ MRK LLY ABBV