Editing Pfizer Inc.
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|The cost of equity was calculated based on the CAPM. 10-year US Treasury, average market rate of return and beta of Pfizer were all used in order to come up with this number. | |The cost of equity was calculated based on the CAPM. 10-year US Treasury, average market rate of return and beta of Pfizer were all used in order to come up with this number. | ||
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Using the DCF valuation method, under our base case, we found a value per share of $ | Using the DCF valuation method, under our base case, we found a value per share of $28.64. Thus the company is trading at a premium of 22.3% (market value per share right now is $36.85) compared to its intrinsic value calculated using DCF. DCF is an assumption-based model and the accuracy of those assumptions can significantly impact the valuation results. The assumptions used are included in the following table: | ||
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