Pfizer’s DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.13%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 3%

Historical Data

Revenue growth in the last 10 years (CAGR): 2.68%

Earnings growth in the last 10 years (CAGR): 1.44%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 0.11%

Future Assumptions

End of Year FCF growth: 1%

Growth until end of 2026: 2%

Growth until end of 2034: 2%

Perpetual growth: 2%

Net Debt: 45.078B

Outstanding Stock Options Present Value Assumption: $0B

Restricted Stock Units Present Value Assumption: $3.553B

Stock Valuation based on these assumptions: $48

Last update 07/13/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Pfizer (PFE) and I don’t plan to add a position in the coming days.