DCF Tool

PFE

Pfizer Inc. – Pharmaceutical Preparation Manufacturing
Pfizer applies science and its global resources to bring therapies to people that extend and significantly improve their lives. It strives to set the standard for quality, safety and value in the discovery, development and manufacture of health care products, including innovative medicines and vaccines. Every day, Pfizer colleagues work across developed and emerging markets to advance wellness, prevention, treatments and cures that challenge the most feared diseases of our time. Consistent with its responsibility as one of the world's premier innovative biopharmaceutical companies, it collaborates with health care providers, governments and local communities to support and expand access to reliable, affordable health care around the world. For more than 150 years, it has worked to make a difference for all who rely on it. It routinely posts information that may be important to investors on its website at www.Pfizer.com.
Analysis Results
Intrinsic Value $40.50
Latest Price $52.47
Relative Value 30% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -5.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -5.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 10.1 9.73
2023 9.54 8.8
2024 8.97 7.95
2025 8.45 7.18
2026 7.95 6.49
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 238 billion. This corresponds to a present value of 187 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 40.2 billion. Adding in the terminal value gives a total present value of 227 billion.

There are presently 5.61 billion outstanding shares, so the intrinsic value per share is 40.5.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 59,693,000,000
Current Cash 31,069,000,000
Current Liabilities 42,672,000,000
Current Debt 2,241,000,000
Non-Cash Working Capital (NCWC) -11,807,000,000
Change in NCWC -11,434,000,000
EBIT 21,959,000,000
Tax Provision 1,852,000,000
Depreciation and Amortization 5,191,000,000
Capital Expenditure -2,711,000,000
Unlevered Free Cash Flow 11,332,174,200
Current Assets 35,066,000,000
Current Cash 12,221,000,000
Current Liabilities 25,921,000,000
Current Debt 2,703,000,000
Non-Cash Working Capital (NCWC) -373,000,000
Change in NCWC -2,238,000,000
EBIT 10,154,000,000
Tax Provision 478,000,000
Depreciation and Amortization 4,777,000,000
Capital Expenditure -2,791,000,000
Unlevered Free Cash Flow 9,254,592,770
Current Assets 32,802,000,000
Current Cash 9,830,000,000
Current Liabilities 37,302,000,000
Current Debt 16,195,000,000
Non-Cash Working Capital (NCWC) 1,865,000,000
Change in NCWC -6,202,000,000
EBIT 14,754,000,000
Tax Provision 1,385,000,000
Depreciation and Amortization 6,010,000,000
Capital Expenditure -2,594,000,000
Unlevered Free Cash Flow 10,812,279,735
Current Assets 49,926,000,000
Current Cash 18,833,000,000
Current Liabilities 31,857,000,000
Current Debt 8,831,000,000
Non-Cash Working Capital (NCWC) 8,067,000,000
Change in NCWC 7,389,000,000
EBIT 16,028,000,000
Tax Provision 707,000,000
Depreciation and Amortization 6,384,000,000
Capital Expenditure -2,042,000,000
Unlevered Free Cash Flow 26,805,466,173
Current Assets 41,143,000,000
Current Cash 19,992,000,000
Current Liabilities 30,426,000,000
Current Debt 9,953,000,000
Non-Cash Working Capital (NCWC) 678,000,000
Change in NCWC 6,000,000
EBIT 14,606,000,000
Tax Provision -9,048,000,000
Depreciation and Amortization 6,269,000,000
Capital Expenditure -2,217,000,000
Unlevered Free Cash Flow 18,664,000,000
Current Assets 38,949,000,000
Current Cash 17,850,000,000
Current Liabilities 31,115,000,000
Current Debt 10,688,000,000
Non-Cash Working Capital (NCWC) 672,000,000
Change in NCWC -603,000,000
EBIT 14,635,000,000
Tax Provision 1,122,000,000
Depreciation and Amortization 5,757,000,000
Capital Expenditure -1,999,000,000
Unlevered Free Cash Flow 15,823,712,130
Current Assets 43,804,000,000
Current Cash 23,290,000,000
Current Liabilities 29,399,000,000
Current Debt 10,160,000,000
Non-Cash Working Capital (NCWC) 1,275,000,000
Change in NCWC -3,815,000,000
EBIT 13,898,000,000
Tax Provision 1,990,000,000
Depreciation and Amortization 5,157,000,000
Capital Expenditure -1,496,000,000
Unlevered Free Cash Flow 10,659,344,635
Current Assets 57,702,000,000
Current Cash 36,122,000,000
Current Liabilities 21,631,000,000
Current Debt 5,141,000,000
Non-Cash Working Capital (NCWC) 5,090,000,000
Change in NCWC -1,407,000,000
EBIT 14,501,000,000
Tax Provision 3,120,000,000
Depreciation and Amortization 5,537,000,000
Capital Expenditure -1,199,000,000
Unlevered Free Cash Flow 13,735,364,653
Current Assets 56,244,000,000
Current Cash 32,408,000,000
Current Liabilities 23,366,000,000
Current Debt 6,027,000,000
Non-Cash Working Capital (NCWC) 6,497,000,000
Change in NCWC -15,000,000
EBIT 16,889,000,000
Tax Provision 4,306,000,000
Depreciation and Amortization 6,410,000,000
Capital Expenditure -1,206,000,000
Unlevered Free Cash Flow 17,450,611,733
Current Assets 61,415,000,000
Current Cash 32,708,000,000
Current Liabilities 28,619,000,000
Current Debt 6,424,000,000
Non-Cash Working Capital (NCWC) 6,512,000,000
Change in NCWC -407,000,000
EBIT 18,460,000,000
Tax Provision 2,562,000,000
Depreciation and Amortization 7,611,000,000
Capital Expenditure -1,327,000,000
Unlevered Free Cash Flow 20,421,890,728

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