Pfizer Inc. Valuation

Abstract

If there is one topic that has drastically affected human society in the last decades, it definitely is the global pandemic caused by COVID-19. As a result, there has never existed a higher desire to create a vaccine in order to combat any virus in the entire world. Therefore, this academic paper is going to analyze the valuation of Pfizer Inc., which was the first company that has discovered and fabricated a vaccine against the COVID-19 virus. Firstly, we are going to shortly explain the methodology utilized in order to analyze the valuation of Pfizer. This will be followed by the description of the pharmaceuticals & biotechnology sector through Porter´s Five Forces Model, the PESTEL analysis as well as a comparison between the most important COVID-19 manufacturers. Next, the paper will enter the financial analysis of the company, which has been mainly divided into three sections, namely the key financial ratios of the enterprise, the relative valuation by examining the key multiples and the long-term trends of the firm by reviewing their performance of the last fifteen years. Following that, we are going to calculate Pfizer´s valuation per share for the next five years, and hence compare it to the firm´s market valuation to determine whether the firm is overvalued or undervalued. Lastly, we are going to briefly indicate the limitations we must face when calculating the company´s value and consequently explain the conclusion of the academic bachelor thesis.