Equity valuation

: Pfizer Inc

Abstract

The Covid-19 pandemic brought unparalleled global challenges, during which the world has placed all its hopes within the pharmaceutical industry, making this industry one of the most impacted industries by the pandemic. Therefore, the purpose of this dissertation is to analyze the intrinsic value of Pfizer, INC, one of the key players in the industry to form an investment recommendation. To establish the best practices for forming the investment recommendation, a literature review was conducted. Subsequently, the final investment recommendation was formulated by applying a weighted average of two Discounted Cash Flow Valuation Models and the Relative Valuation Model achieving a final share price of $34,37 as of 13th December of 2023 and leading to a Buy recommendation. Acknowledging the potential impact with uncertainties provided by the possible evolution of Covid-19, a sensitivity analysis and a scenario analysis were also conducted considering different possible scenarios that can affect the company’s share price. Finally, the conducted valuation was compared with the equity valuation research made by the analyst Chris Shibutani, from Goldman Sachs on 12th December 2023. Despite different assumptions and perspectives, Shibutani's report concluded with the same final Buy recommendation, even though with a distinct final price target of $37,00.

Date of Award	30 Jan 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)