Highly Regarded

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

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

55% Discount TTM fundamentals · sector averages from covered peers

PFE trades at 13.8× TTM earnings — a 55% discount to its Healthcare sector average of 30.6× in our coverage.

The Numbers

P/E (TTM)

13.8×

Sector avg: 30.6×

P/S (TTM)

2.1×

Sector avg: 7.7×

Market Cap

$134.98B

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 $23.74 13.8×
LLY $1201.42 58.8×
JNJ $259.33 25.0×
UNH $418.05 21.8×
MRK $126.81 16.8×

Is the Discount Justified?

July 6, 2026

Pfizer's P/E multiple of 13.8x, a significant discount to the Healthcare sector average of 27.2x, reflects a period of substantial transition and challenges. The company is navigating a sharp decline in revenue from its COVID-19 related products, although operational revenue excluding these items showed a 7% increase in Q1 2026. While Pfizer is strategically pivoting to oncology through acquisitions like Seagen, a recent Phase 3 clinical trial failure for a lung cancer drug represents a setback. Upcoming patent expirations for key drugs, such as Eliquis, further pressure future revenue streams. These factors, combined with broader industry headwinds like R&D productivity and pricing pressures, and a recent CFO departure, contribute to a cautious market sentiment and the current valuation discount.

Sources

Frequently Asked Questions

Is PFE overvalued or undervalued?
On trailing-twelve-month earnings, PFE trades at 13.8x versus a Healthcare sector average of 30.6x in our coverage — a 54.9% 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

UNH JNJ MRK LLY ABBV