Equity Research - PFIZER

This report contains a thorough evaluation of Pfizer Inc. The ISEG Master's Final work Project guidelines and the CFA Institute guidelines were combined to create the format for this equity research report. Pfizer was chosen in part because of the rise of covid-19, a hot topic in the pharmaceutical industry, and in part because the company created the first covid-19 vaccine, which sparked a particular interest in learning more about the company. Pfizer Inc. (PFE) is a research-based, global biopharmaceutical company, that is committed to the discovery, development, manufacture, marketing, sales, and distribution of biopharmaceutical products worldwide – with 2021YE revenue of $81.2Bn and a market capitalization of $332Bn. The recommendation of Pfizer is Buy with a PT of $57.00/share for FY2023, implying an upside potential of 28.20% or an annualized return of 23.73% with medium risk compared to the closing price of $44.46/share on October 4, 2022. PT is calculated using a discounted cash flow model (DCF), but other methods are also considered, including adjusted present value (APV), the flow equity method (FTE), the discounted dividend model (DDM), and a relative valuation based on competitors' market multiples to arrive at Pfizer's PT. The report also includes a detailed explanation of the risks that can affect the price target, as well as a sensitivity analysis to assess the impact of those risks in the investment recommendation. This report considers all the public information available until 4th October 2022.