Is Pfizer Inc. overvalued or undervalued?

As of 29 October 2024, Pfizer Inc. has moved from a grade of risky to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued, with a P/E ratio of 15, a PEG ratio of 0.13, and a robust dividend yield of 428.12%. These figures suggest that Pfizer is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Pfizer's P/E ratio is notably lower than that of Eli Lilly & Co., which stands at 48.73, and Johnson & Johnson, at 22.46. Additionally, Pfizer's EV to EBITDA ratio of 11.17 is more favorable than that of AbbVie, Inc., which has a ratio of 15.37. Despite recent underperformance against the S&P 500, with a year-to-date return of -9.42% compared to the index's 2.44%, the current valuation metrics indicate that Pfizer presents a compelling investment opportunity.