By Anton Ladnyi, CFA · ex-Goldman Sachs · ex-J.P. MorganPublished Updated
PFE — Pfizer at ~$26 on ~8-9x forward P/E beat Q1 2026 (revenue $14.45B +5.4%, EPS $0.75 vs $0.72) but did not raise guidance ($59.5-62.5B revenue, $2.80-3.00 EPS); Seagen oncology +20%, danuglipron discontinued (liver injury signal), obesity pivot to Metsera assets targeting 2028+; 6.8% yield questions sustainability.
PFE Price Target & Rating
PFE's grade is Buy, with limited downside risk (CVaR -8.0%), and quality metrics (net margin 12%, ROE 8%). Pfizer Inc. (PFE) trades at $25.60 with a valuation grade of Buy: a trailing P/E of 19.5x at a 11% discount to sector median, net margins of 11.8%, a DCF-implied intrinsic range of $33–$57 suggesting a +75% margin of safety, beta 0.29 (defensive risk profile).
DCF Valuation Range
Key Takeaways
Valuation: Buy grade — P/E 19.5x — DCF range $33–$57 implies +75% margin of safety
Risk: CVaR -8.0% (95th percentile, 1-month) indicates moderate tail exposure; beta of 0.29 amplifies broad market moves in both directions
Strengths: Size 4.0/5, 12% net margin, 8% ROE dominate the factor profile
Catalyst: Seagen PADCEV Phase 3 EV-304 final data; sigvotatug vedotin SigVie-003 Phase 3 first readout; first Metsera Phase 3 readout (2027-2028); Eliquis biosimilar launch date clarity
Bear catalyst: Dividend cut; second ADC safety signal; management reduces 2029+ guidance to mid-single-digit CAGR; net debt rises above $40B
PFE — Quantitative SnapshotJune 2026
RatingBuy
Price$25.60
Why BuyAttractive valuation relative to peers with solid fundamentals
Tail riskCVaR -8.0% over one month at the 95th percentile
DCF range$33–$57 intrinsic range; margin of safety +75%
Best useCore large-cap Healthcare holding — not a source of diversified sector exposure
Next watchEarnings surprise deceleration trend — monitor next quarter delivery closely
Quantitative Factor Profile
Value
4.0 / 5
Quality
1.0 / 5
Momentum
3.0 / 5
Volatility
5.0 / 5
Size
4.0 / 5
Key Metrics
PFE Key Metrics — Pfizer Inc. 2026
Metric
Value
Current Price
$25.60
P/E Ratio (TTM)
19.5x
Forward P/E
9.0x
P/S Ratio
2.3
EV/EBITDA
7.8
Beta
0.29
Net Margin
11.8%
ROE
8.3%
Debt/Equity
71.6%
Dividend Yield
6.72%
CVaR (95%, 1M)
-8.0%
Market Cap
$145.9B
Analyst View
Anton Ladnyi, CFA · A.L. Capital AdvisoryUpdated 2026-06-11
Rating Rationale
PFE — Pfizer at ~$26 on ~8-9x forward P/E beat Q1 2026 (revenue $14.45B +5.4%, EPS $0.75 vs $0.72) but did not raise guidance ($59.5-62.5B revenue, $2.80-3.00 EPS); Seagen oncology +20%, danuglipron discontinued (liver injury signal), obesity pivot to Metsera assets targeting 2028+; 6.8% yield questions sustainability.
Investment Thesis
↑ Bull Case
Seagen ADC platform: PADCEV FDA-approved (EV-303, ASCO 2026) as perioperative neoadjuvant+adjuvant in muscle-invasive bladder cancer — first MIBC perioperative approval; sigvotatug vedotin (IB6-ADC) Phase 1 data supports Phase 3 SigVie-003 in NSCLC; ~20 pivotal oncology studies starting 2026
Talzenna + Xtandi: positive Phase 3 TALAPRO-3 in metastatic prostate cancer (March 2026) — new approved combination indication expanding urological oncology
At 8-9x forward P/E and 6.8% yield, most of the patent cliff appears priced in; any pipeline success delivers asymmetric upside
Management target: high single-digit revenue CAGR from 2029 onward — if ADC platform delivers, 3-year holding returns could be substantial
Metsera acquisition brings ultra-long-acting GLP-1 assets; 10 pivotal trials planned 2026 with first approval targeted 2028
Danuglipron discontinued (liver injury signal): eliminates Pfizer as a 2026-2027 GLP-1 competitor; Metsera is a 2028+ story at best
COVID revenue: $56.7B peak in 2022 → ~$5B in 2026 — secular collapse not cyclical; never returns
Guidance not raised despite Q1 beat — management reserving for tariff and pricing uncertainty; signals lack of visibility
Dividend sustainability: 6.8% yield at ~100% GAAP payout ratio requires ADC cash flows to materialise; any cut would be brutal
What Changes the Rating
↑Catalyst:Seagen ADC produces two additional approvals in 2026-2027; management raises FY2026 guidance above $62.5B; dividend maintained with clear FCF coverage
↓Stop / exit:Dividend cut; second ADC safety signal; management reduces 2029+ guidance to mid-single-digit CAGR; net debt rises above $40B
Anton’s personal note
The model rates this a Buy, and the DCF case is real — the margin of safety is wide enough to absorb some delivery variance. That gives me more conviction here than the factor scores alone would suggest. The factor model flags quality as the weak link here, and it is right to. What I watch is return on capital — specifically whether the business can convert revenue growth into durable returns, not just reported earnings. That transition is the key to making the current rating look correct in hindsight. The setup that would make me more positive is a quarter that confirms the operating leverage story. The setup that would make me cautious is any signal that consensus estimates are getting ahead of fundamentals.
— Anton Ladnyi, CFA
Earnings History
PFE Earnings History — EPS Surprise Rate 2026
Quarter
EPS Est.
EPS Actual
Surprise
Q1 2026
$0.72
$0.75
+3.9% ✓
Q4 2025
$0.57
$0.66
+16.2% ✓
Q3 2025
$0.63
$0.87
+37.4% ✓
Q2 2025
$0.57
$0.78
+35.9% ✓
Quarterly EPS — Estimate vs Actual
Earnings Projections
PFE Forward EPS Consensus Estimates 2026
Quarter
EPS Est.
YoY EPS
Analysts
Q2 2026
$0.68
-12.8%
18
Q3 2026
$0.85
-2.5%
18
Q4 2026
~$0.68
+3.0%
26
Q1 2027
~$0.71
-5.3%
26
~ Estimated from annual consensus — not a direct analyst survey
Hover each scenario for detail · current price $25.60
▼
Bear Case
$18
-29.7%
Fwd P/E: 6.2x
-5.0 revenue CAGR · 7.0 exit multiple
◆
Base Case
$29
+13.3%
Fwd P/E: 9.9x
3.0 revenue CAGR · 10.0 exit multiple
▲
Bull Case
$42
+64.1%
Fwd P/E: 14.4x
10.0 revenue CAGR · 14.0 exit multiple
Pairwise Correlation Matrix
1 of 10 peer pairs correlated above 0.60 — diversification benefit within this cluster is structurally limited.
Extended Analysis — Buy, Hold or Sell? Risk Factors. Portfolio Fit.
Is PFE a buy, hold, or sell?
PFE carries a valuation grade of Buy. At a trailing P/E of 19.5, the stock trades at a 11% discount to the Healthcare sector median of 22.0x. Our discounted cash flow model produces an intrinsic range of $33–$57 — implying a +75% margin of safety at the current price of $25.60. The width of the DCF range reflects genuine uncertainty in the terminal growth rate assumption: the correct framework is a probability-weighted distribution over scenarios, not a single point estimate. See the DCF valuation framework for full methodology.
With a 12% beat rate on recent quarters, earnings predictability has been mixed. The most recent quarter delivered a 3.9% earnings surprise. Analyst estimate revisions are trending upward.
What are PFE's key risk factors?
With a beta of 0.29, PFE exhibits a low-volatility risk profile relative to the broad market. The 95th-percentile CVaR of -8.0% on a one-month horizon should inform position sizing directly: at a 10% portfolio weight, this tail event contributes approximately 0.8% of total portfolio loss in the worst 5% of months. Net margins of 11.8% fall below the Healthcare sector average of 18%, suggesting margin pressure. The balance sheet is conservatively leveraged at 72% debt-to-equity.
Implied volatility of 3.4% is below realized volatility of 15.8%, potentially making options relatively cheap. Insider transactions show net buying of $70.9M over the trailing period, a signal often associated with management confidence. Short interest is low at 2.9% of float, suggesting limited bearish conviction.
How does PFE fit in a diversified portfolio?
At typical HENRY portfolio weights — 10–20% of the equity allocation — PFE carries a beta of 0.29, meaning it amplifies broad market moves proportionally. The appropriate weight is not a function of conviction alone, but of the full covariance structure across all holdings. See the Ledoit-Wolf covariance framework for the methodology behind these calculations.
Among closely correlated names, PFE shows the strongest co-movement with BMY (0.60), MRK (0.57), AZN (0.52). Investors seeking diversification should note these correlation dynamics when constructing multi-asset portfolios.
True portfolio risk is a function of the full covariance structure across all holdings — not individual stock metrics. The Portfolio Health Check quantifies this at the portfolio level: it surfaces hidden concentration, marginal CVaR contributions, and the degree to which your overall allocation deviates from an optimal risk-adjusted mandate. The PFE analysis here is a single node in that larger structure.
For the portfolio construction framework underpinning PFE’s position sizing and conviction rating — including IPS guardrails, Black-Litterman allocation, and CVaR constraints — see: Investment Policy Statement Framework →
Investor FAQ
Is PFE a buy or sell in 2026?
Pfizer Inc. (PFE) carries a Buy quantitative rating from A.L. Capital Advisory, derived from Discounted Cash Flow intrinsic value analysis, five-factor model scoring (Value, Quality, Momentum, Volatility, Size), and CVaR tail risk measurement. At $25.60, the DCF midpoint margin of safety is +75% (intrinsic value range: $33 bear – $57 bull). Composite factor score: 3.4/5. Strongest factor: Volatility (5.0/5). Weakest factor: Quality (1.0/5). Trailing P/E: 19.5x. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Portfolio Construction Framework →
What is the average analyst target price for PFE?
Wall Street consensus target for PFE: $29.19 (+14.0% upside from the current price of $25.60). The analyst target range spans $24.00 (most bearish) to $36.00 (most bullish). Consensus recommendation: Buy. Note that analyst price targets typically reflect a 12-month forward horizon and are derived from a blend of DCF, comparable-company, and sum-of-the-parts analysis. A.L. Capital Advisory’s quantitative Buy rating is produced independently — from DCF intrinsic value, five-factor model scores, and CVaR tail risk — and does not mechanically track Street consensus. When the two diverge, the divergence itself is informative: it can reflect differences in time horizon, valuation methodology, or the degree to which the current price already discounts the consensus case. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Monte Carlo Simulation Framework →
How does PFE score on Value, Quality, Momentum, Volatility, and Size?
PFE five-factor scores (A.L. Capital Advisory, 1–5 scale): Value 4.0/5 (above average) — measures current price versus DCF intrinsic range and trailing earnings multiples; Quality 1.0/5 (weak) — captures profitability metrics including return on equity, net margin (ROE: 8.3%) and net margin (11.8%); Momentum 3.0/5 (neutral) — reflects recent price trajectory and earnings surprise consistency; Volatility 5.0/5 (strong) — inverse measure derived from beta, where lower historical volatility earns a higher score; Size 4.0/5 (above average) — market capitalisation rank (mega-cap $1T+ scores 5/5). Composite: 3.4/5. Factor scores above 4.0 signal a tailwind in that dimension; below 2.0 signals a material headwind. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Black-Litterman Model →
What is PFE's tail risk and CVaR?
The 95th-percentile Conditional Value at Risk (CVaR) for PFE on a one-month horizon is -8.0%. CVaR represents the expected average loss in the worst 5% of monthly outcomes — a more conservative tail risk measure than standard VaR, which only marks the loss threshold. Beta of 0.29 indicates below-market volatility. For reference, a diversified S&P 500 ETF carries a one-month CVaR of roughly -8% to -12% in normal market conditions; individual equity CVaR is higher due to idiosyncratic risk. At the portfolio level, what matters is the marginal CVaR contribution of each holding — not its standalone figure. The A.L. Capital Advisory Portfolio Health Check quantifies each position's marginal tail-risk contribution across your entire holdings. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: CVaR & Tail-Risk Methodology →
What is PFE's intrinsic value and DCF price target?
A.L. Capital Advisory's DCF model produces an intrinsic value range of $33 (bear case) to $57 (bull case) for Pfizer Inc. (PFE). At $25.60, the midpoint margin of safety is +75% (positive = discount to intrinsic mid; negative = premium). The bear-to-bull spread reflects genuine sensitivity to the two dominant DCF inputs: the terminal growth rate and WACC. Terminal value typically accounts for 60-80% of total intrinsic value in most equity DCF models, which is why a range is more analytically sound than a point estimate. The central analytical question is not what the DCF outputs as a single number but which growth trajectory the current market price already discounts. All DCF analysis follows CFA Institute standards and is conducted by Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: DCF Valuation Framework →
What would trigger a rating upgrade or downgrade for PFE?
Upgrade trigger: Upgrade to Strong Buy on evidence of accelerating earnings surprise magnitude combined with improvement in the Value factor score — specifically if the current 19.5x P/E is supported by an upward revision to DCF terminal growth assumptions. Downgrade trigger: a sustained reversal in the Quality and Momentum factor scores for two or more consecutive quarters. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Investment Policy Statement Framework →
Does PFE consistently beat earnings estimates?
PFE has beaten consensus EPS estimates in 12% of tracked quarterly periods — indicating inconsistent delivery. The most recent reported quarter beat consensus by 3.9%. Below-average earnings consistency is a primary headwind to the rating and a key watch item in the quantitative model. Earnings surprise magnitude and direction are incorporated into the Momentum and Quality dimensions of the five-factor scoring model. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: DCF Valuation Framework →
How does PFE contribute to portfolio risk and diversification?
PFE carries a beta of 0.29 (low-volatility / defensive relative to the broad equity market). A beta above 1.0 means the position amplifies market moves in both directions at a typical portfolio weight. Strongest peer co-movement: BMY (0.60), MRK (0.57), AZN (0.52). Holding PFE alongside these names in the same portfolio increases concentration risk. True portfolio risk is a function of the full covariance structure — a single stock's beta does not reveal its marginal contribution to portfolio tail loss. The A.L. Capital Advisory Portfolio Health Check quantifies concentration risk (Herfindahl-Hirschman Index), pairwise correlations, and marginal CVaR contribution across all your holdings. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Ledoit-Wolf Covariance Framework →
What quantitative methodology does A.L. Capital Advisory use to analyse PFE?
A.L. Capital Advisory analyses Pfizer Inc. (PFE) using a four-component quantitative framework grounded in CFA Institute standards. (1) DCF Valuation: projects free cash flows under bear and bull assumptions, discounts at WACC to produce an intrinsic value range with margin-of-safety calculation. (2) Five-Factor Scoring: each equity is scored 1–5 on Value, Quality, Momentum, Volatility, and Size. (3) CVaR Tail Risk: 95th-percentile Conditional Value at Risk from historical simulation of daily returns on a one-month horizon. (4) Earnings Surprise Analysis: quarterly beat rate and magnitude are incorporated into the Momentum and Quality factor scores. The current Buy rating for PFE is the output of applying this complete framework to current data. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: DCF Valuation Framework → · CVaR & Tail-Risk Methodology →
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This analysis is produced using a systematic quantitative framework applied to market data and does not constitute investment advice. Prose commentary is AI-assisted and generated from structured quantitative inputs. All data and metrics are as of 2026-06-11 and are point-in-time estimates subject to revision without notice. CVaR figures are based on historical simulation and do not guarantee future outcomes. DCF ranges and upgrade/downgrade triggers are forward-looking statements based on current assumptions and may not materialise. Past performance does not guarantee future results. This analysis does not account for individual circumstances, tax position, or investment objectives — consult a qualified financial advisor before making investment decisions. This content is intended for informational purposes only and does not constitute regulated investment advice under MiFID II or FCA guidelines. This content is not intended for US persons or residents of jurisdictions where its distribution would be contrary to local law or regulation. This service is not directed at residents of Finland, Sweden, Norway, Denmark, Iceland, or Poland. The author may hold long or short positions in securities mentioned in this analysis. Nothing on this page represents a solicitation to buy or sell any security. A.L. Capital Advisory is an independent private advisory practice and is not affiliated with Pfizer Inc.
CFA Portfolio Advisory — PFE
Discuss this analysis, position sizing, or your full portfolio mandate with Anton Ladnyi, CFA.
