EQUITY RESEARCH: PFIZER INC.

This report includes a detailed valuation of Pfizer Inc. The format of this Equity Research Report combines both rules of ISEG Master Final Work Project and the CFA institute recommendations. The choice of Pfizer Inc was firstly because the pharmaceutical industry is a trending topic nowadays, due to covid-19, and secondly because Pfizer developed the first covid-19 vaccine which awakened in me a special 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 2020FY revenues of $41.9Bn and a market capitalization of $205 Bn. Pfizer has a BUY recommendation, with a 2022FY PT of $54.48/share, which represents an upside potential of 18.3%, equivalent to an annualized return of 13.4%, against the closing price of $46.07/share on August 31st, 2021, with medium risk. The PT was obtained using Discounted Cash Flow model (DCF), other methodologies were considered to reach Pfizer’s PT such as the Adjusted Present Value (APV), the Flow-to-Equity (FTE) method, the Dividend Discount Model (DDM), and a Relative Valuation using market multiples from peers. The report also includes a detailed explanation about 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 31st August 2021.