Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Pfizer Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the annual cash flow data reveals several key trends regarding operating activities and free cash flow to equity (FCFE) over the five-year period.
- Net Cash Provided by Operating Activities
- There was a significant increase in net cash provided by operating activities from 10,586 million US dollars at the end of 2020 to a peak of 32,922 million in 2021. This was followed by a slight decline to 29,267 million in 2022. Subsequently, a sharp reduction occurred in 2023, bringing the figure down to 8,700 million, with a moderate recovery to 12,744 million in 2024. Overall, the pattern suggests a peak in operational cash generation in 2021 followed by a marked deterioration and partial recovery by 2024.
- Free Cash Flow to Equity (FCFE)
- The FCFE showed more volatility across the same period. Starting with a negative value of -4,421 million US dollars in 2020, it rose dramatically to a high of 29,108 million in 2021, indicating a substantial improvement in cash available to equity holders. Afterward, FCFE declined to 22,515 million in 2022 but experienced a notable increase to 40,738 million in 2023, representing the highest value in the series. However, in 2024, FCFE fell steeply again to 2,676 million. This volatility contrasts with the operating cash flow trend, showing sharper fluctuations but also higher peaks.
The data exhibits a pattern of strong cash flow performance in 2021 and 2023, interspersed with considerable declines in 2023 for operating activities and 2024 for FCFE. This indicates potential variability in either operational efficiency, capital expenditure, financing activities, or other factors affecting cash flows available to equity holders. The substantial positive FCFE peaks alongside fluctuating operating cash flow suggest changes in financing or investments that might have influenced the equity cash flow independently from operating cash flow trends.
Price to FCFE Ratio, Current
Pfizer Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 5,685,365,587 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 2,676) |
| FCFE per share | 0.47 |
| Current share price (P) | 25.38 |
| Valuation Ratio | |
| P/FCFE | 53.92 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| AbbVie Inc. | 13.33 |
| Amgen Inc. | 26.14 |
| Bristol-Myers Squibb Co. | 3.97 |
| Danaher Corp. | 39.95 |
| Eli Lilly & Co. | 58.44 |
| Gilead Sciences Inc. | 11.78 |
| Johnson & Johnson | 12.56 |
| Merck & Co. Inc. | 9.96 |
| Regeneron Pharmaceuticals Inc. | 16.04 |
| Thermo Fisher Scientific Inc. | 32.93 |
| Vertex Pharmaceuticals Inc. | — |
| P/FCFE, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 18.57 |
| P/FCFE, Industry | |
| Health Care | 17.04 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Pfizer Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 5,667,340,414 | 5,646,778,425 | 5,619,074,621 | 5,623,346,471 | 5,577,629,491 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 2,676) | 40,738) | 22,515) | 29,108) | (4,421) | |
| FCFE per share3 | 0.47 | 7.21 | 4.01 | 5.18 | -0.79 | |
| Share price1, 4 | 26.10 | 27.55 | 42.30 | 45.96 | 33.82 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 55.28 | 3.82 | 10.56 | 8.88 | — | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| AbbVie Inc. | 13.57 | 17.37 | 22.66 | 18.76 | 13.16 | |
| Amgen Inc. | 25.50 | 4.71 | 8.32 | 13.52 | 11.06 | |
| Bristol-Myers Squibb Co. | 4.74 | 7.52 | 22.85 | 16.17 | 7.80 | |
| Danaher Corp. | 40.83 | 53.08 | 32.04 | 20.75 | 44.62 | |
| Eli Lilly & Co. | 64.93 | 75.06 | 60.51 | 35.17 | 36.62 | |
| Gilead Sciences Inc. | 12.07 | 12.81 | 15.22 | 12.70 | 5.98 | |
| Johnson & Johnson | 12.67 | 24.31 | 16.73 | 23.28 | 15.60 | |
| Merck & Co. Inc. | 11.32 | 24.48 | 22.40 | 18.72 | 17.85 | |
| Regeneron Pharmaceuticals Inc. | 21.27 | 26.52 | 19.29 | 10.35 | 13.30 | |
| Thermo Fisher Scientific Inc. | 41.23 | 31.16 | 27.98 | 13.44 | 18.58 | |
| Vertex Pharmaceuticals Inc. | — | 33.45 | 19.91 | 26.08 | 18.46 | |
| P/FCFE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 19.99 | 16.91 | 19.28 | 16.49 | 17.09 | |
| P/FCFE, Industry | ||||||
| Health Care | 18.69 | 17.15 | 18.11 | 18.05 | 17.25 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,676,000,000 ÷ 5,667,340,414 = 0.47
4 Closing price as at the filing date of Pfizer Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 26.10 ÷ 0.47 = 55.28
6 Click competitor name to see calculations.
The financial data reveals significant variations in key metrics over the five-year period, highlighting notable fluctuations in share price, free cash flow to equity (FCFE) per share, and valuation ratios.
- Share Price
- The share price demonstrated an upward trend from 33.82 US$ at the end of 2020 to a peak of 45.96 US$ in 2021. This was followed by a decline to 42.3 US$ in 2022, and a more pronounced drop in the subsequent years, reaching 27.55 US$ in 2023 and further decreasing to 26.1 US$ by the end of 2024. Overall, this suggests a peak in market valuation in 2021 with a downtrend thereafter.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share started negative at -0.79 US$ in 2020, turning positive and increasing substantially to 5.18 US$ in 2021. It slightly declined to 4.01 US$ in 2022 but rebounded sharply to 7.21 US$ in 2023 before dropping significantly to 0.47 US$ in 2024. This pattern indicates volatile cash flow generation capacity, with strong performance in the middle years followed by a substantial reduction in the latest period.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio was not available for 2020 but was 8.88 in 2021 and increased to 10.56 in 2022, indicating that the market valuation per unit of FCFE rose during these years. In 2023, there was a sharp decline to 3.82, suggesting the stock became comparatively undervalued relative to cash flow at that time. However, in 2024, the ratio rose dramatically to 55.28, reflecting either a significant decrease in FCFE or a disconnect between price and cash flow, consistent with the sharp fall in FCFE per share during the same period.
In summary, the period under review exhibited substantial volatility in both market valuation and cash flow performance. The initial increase in share price and FCFE per share was followed by a decline in market price amid fluctuating cash flow, culminating in a potentially overvalued P/FCFE ratio in the final year. These trends suggest a need for careful evaluation of underlying business fundamentals and market expectations.